The freedom of freelance status goes hand in hand with accounting and tax obligations. Even with a simplified diet, like that of micro-enterprise, a rigorous outfit of your cash flows prevents financial pitfalls.
To this end, discover 10 accounting errors often committed by freelancers, to avoid them and secure the future of your activity.
1. Do not separate personal and professional bank accounts
To distinguish your personal accounts from those of your professional activity is an obligation. On the one hand, this separation facilitates the daily management of your finances, on the other hand, it also simplifies the processes of tax declaration and financial analysis.
62% of freelancers Consider the instability of income as a major challenge: a clear accounting organization, with two separate accounts, help to mix this problem thanks to a clear vision of all financial flows.
2. Do not regularly follow revenue and expenses
One of the pillars of healthy financial management is the rigorous monitoring of revenue and expenses. Use suitable software, as Invoice.net For example, helps you maintain an impeccable order in your accounts. At any time, you know where your cash flow is.
However, it is essential to anticipate future cash needs, in particular for the settlement of your any providers, the payment of your tools or the levy of social contributions.
3. Neglect VAT and other tax obligations
76% of French freelancers opt for the status of micro-entrepreneur, attracted by the simplification of tax procedures. However, this simplified regime does not free you from certain obligations. You are still responsible for the calculation, declaration and payment of your taxes, including VAT if applicable.
Watch out for penalties in the event of delay or ommel! Errors that can harm your cash. Even if you have chosen micro-enterprise, learn or call on a chartered accountant is sometimes recommended.
4. Forget to charge certain work or costs
In daily restlessness, freelancers are common to invoice certain additional work or additional costs. To avoid this, forget the Excel or post-it-noted sheets, use software that makes it possible to establish precise quotes (and therefore complete invoices), as well as a tool to precisely manage the tasks of your projects, especially if they are complex.
Each minute devoted to a mission must be counted and billed accordingly to maximize your income and reflect the extent of your work.
5. Lack of preparation for hollow periods
Income fluctuations are a reality of freelance work. To cross these periods of uncertainty: constitute a working capital.
This safety net will allow you to cover your expenses during hollow weeks, without financial stress.
Thus, your budgetary planning must include allowances for moments of drop in activity and consider judicious investments during peaks. This practice ensures the sustainability of your business in the medium term.
6. Error in the classification of expenses
The precise classification of your expenses is essential to optimize your tax deductions and maintain clear accounts. Mixing personal expenses with professionals can not only lead to complications during the tax declaration, but also allocating the accuracy of your net profit.
It is recommended to keep separate registers and use separate bank accounts, in order to simplify traceability and expenditure verification.
7. Delay in sending invoices
Quickly sending invoices after delivery of a service maintains a healthy cash flow. Delaying this step can significantly differ your payments and disrupt your working capital.
To avoid these delays, automate the process as much as possible: use software that generates and send invoices upon the conclusion of a project or at regular pre-defined intervals, in accordance with contractual agreements. Also provide alerts to be notified of a payment and, conversely, know if there are unpaid invoices.
8. Do not plan tax payments
Plan and allocate funds for future taxes, throughout the year, will save you unpleasant financial surprises. All the more for freelancers who do not benefit from restraint at the source.
Establish a calendar of tax deadlines and regularly provision part of your income in a dedicated account to cover these payments. This strategy ensures peace of mind and constant compliance.
9. ignore the importance of a budget
With 56% of French freelancers declaring a constant workload in 2024 (compared to 2023), the importance of a budget becomes obvious. A well -designed budget helps you provide financial entries and outputs, essential to maintain the stability of your business.
In addition, it optimizes resource allocation and facilitates investment decisions, which strengthens the growth and competitiveness of your freelance activity.
10. Do not consult a professional when necessary
75% of freelancers in France feel confident about their future. However, the complexity of tax and accounting obligations can jeopardize this insurance.
Consult a chartered accountant is cautious, especially when your activity increases sharply, you want to make investments or want to change your status.
At all important stages of development, the advice of a professional help you avoid costly errors and secure your long -term business.
Our advice to avoid accounting errors as a freelance
Effectively managing your accounts as a freelance is not limited to fulfilling legal obligations is also implementing a proactive strategy to strengthen the financial health of your activity.
A meticulous and informed approach to accounting will allow you to comply with legal requirements, but also to control your business with insurance and efficiency.