If you’re a freelancer, it’s time to start thinking about your business-related tasks for wrapping up 2010 and starting 2011 on a positive note. A few thoughts:
- Are you going to raise your rates? If so, think about how to raise them effectively. Are you going to raise your rates for new clients and keep existing clients at the same rate, or raise them across the board? Are you going to approach your regular clients in advance of the rate raise and see if they’re amenable, or inform them of the rate raise and see what happens? Keep in mind: it’s easier to raise your rates a little bit each year rather than trying to impose a drastic increase every few years; some agency clients may have a rate ceiling and it’s up to you if you want to work for that rate or not; in my opinion, the more objective you are about rates (by using a rate sheet or similar tool), the better.
- What are your tax prep plans? Are you going to prepare your taxes yourself, stick with your current accountant or use a new accountant? Whichever option you choose, start early. My accountant has gotten me in the habit of closing out my books as soon as the year ends and preparing my taxes as soon as possible after that. This saves a lot of sleepless nights and hand-wringing in April!
- How about year-end retirement (or other) contributions? Depending on the financial instrument, you may have until April 15 to make these contributions; but plan them now! Making a year-end contribution to your 401K or similar account can be a great way to save on taxes (make sure to check with a tax professional to make sure you’re doing this legally!), but make sure you budget accordingly.
- And as for your goals? Force yourself to cast an objective eye on 2010. Be honest with yourself. What goals did you meet, exceed or fall short of? Most importantly, how can you make a step-by-step plan for reaching your goals in 2011?
Great advice all around and the tax prep advice rings particularly true with me. My CPA schedules me early in the year and I have learned to embrace it. Why put if off? When everyone is stressing out in April, I am long done — though it is still a lot of prep work on my side too–but better just to be done with it. And, we get our refunds a lot sooner too!
Thanks Eve! You’re so right…it’s not like tax day sneaks up on you so why delay the pain? That’s a great point that if you’re getting a refund, you get to enjoy (spend?) it sooner!
Corinne-
I also find it a useful exercise to look at both how well I did against targeted projections and take stock of my assets.
If the bottom line is healthy–and it usually is–then it’s time to make sure equipment and software are updated and get those and any other purchases (staples, pencils, subscriptions) in before the books close.
The new computer arrives Thursday!
Caitilin
Thanks Caitlin, what a great suggestion. Getting the tax deduction for items that you need anyway is a fantastic idea, especially if you’ve had a good year and need to burn some money out of your business account before the tax man comes calling! Good luck with the new computer!
Whoa, is this telepathy or what?
This coming Saturday’s Café des traducteurs (organized by the Paris section of the French translators’ association, http://www.sft.fr) has as its theme “SOS affaires fiscales” — with the guest speaker a specialized accountant who has already presented a half-day session on accounting and tax stuff that translators in France ought to know about. He will be on hand to answer questions (about 20 already submitted). Mine being: what are the top three things I/we definitely must do before Dec. 31? Be there or be square, I say.
Thanks Chris! Yes, it’s telepathy because I want to come to Paris for that Café des traducteurs! I agree, now is the perfect time for that type of session. Let us know what the top 3 things on the must-do list are!!