Freelancers often start out (and end) charging too little for their services. It’s easy to feel like you’re asking too much – especially when your fee is more than you yourself have ever paid for anything – but businesses have bigger budgets than most individuals have so it’s more likely that you under charge your clients than over charge them.
Besides this lack of understanding of business finances, other problems might stand in your way of charging a fair rate:
The gig economy has sparked a lot of discussion surrounding employee rights. While there are no steadfast rules yet on the subject of gig contractors vs gig employees, the topic is maturing as this new employment landscape continues to develop.
In California recently, a federal judge ruled that Grubhub delivery drivers are indeed independent contractors. However, the case is far from closed. Not only does the plantiff’s lawyer plan to appeal the ruling but the California Supreme court is working on drafting a test for these workers. This should help settle the issue overall.
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If you are a small business owner, you’ve probably hired a freelancer by now for something. Participating in the gig economy is nearly unavoidable at this point since so many workers have transitioned to working independently. According to research done by Freelancers Union & Elance-oDesk, there were 53 million Americans or 34 percent of the US workforce that worked as freelancers in 2014.
Being your own boss and claiming your business on your taxes is something freelancers and entrepreneurs have in common. But the similarities end there, which is important for freelancers to understand if they want to expand their operation, start a business, and make more money.
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Businesses can charge clients either by the hours spent on a project or by the total project. A web-based time tracking system is invaluable for billing clients accurately by the hour. A reliable system to track clients and work-history is important when you’re charging by the project. A time tracking system like Timesheets.com keeps track of both clients and projects for freelancers, accountants, and other professionals.
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