Working for yourself can be hugely rewarding, but it also means juggling many responsibilities. As a contractor or freelancer, you’re not only focused on delivering great work—you’re also marketing your services, managing client relationships, tracking your time, and handling your own finances.
At Bidwell Accountancy Ltd, we work with contractors, sole traders, and freelancers across Milton Keynes and beyond. One of the most important factors in building a successful business is getting your finances in order from the very start. By creating good money habits early, you’ll avoid unnecessary stress and build confidence in your business.
Here are three key areas to focus on:
1. Understand What You Can Claim
When you’re self-employed, knowing what expenses you can and can’t claim is essential. Keeping the right receipts and recording the correct costs will ensure you don’t miss out on legitimate deductions.
Because every freelancer’s setup is different, allowable expenses often vary by industry and occupation. That’s why it pays to get expert advice early. At Bidwell Accountancy, we can help you identify which expenses are tax-deductible, plan ahead for larger work-related purchases, and avoid costly mistakes.
2. Set Up a Reliable System
Having a good financial system in place saves time and reduces stress. By recording expenses, tracking invoices, and monitoring cash flow regularly, you’ll free up more time to focus on growing your business.
We recommend choosing accounting software that suits your needs—ideally one that allows you to log time spent on projects and generate professional invoices quickly. Staying organised not only makes life easier but also increases your chances of long-term success.
3. Plan Ahead for Taxes and Quiet Periods
Unlike traditional employees, freelancers and contractors must set aside their own tax contributions. We suggest putting money aside in a separate account or considering voluntary instalments to HMRC.
A smart approach is to pay yourself a regular wage, keeping your personal and business finances separate. This prevents you from spending business income too freely and helps you budget more effectively. Don’t forget to also plan for holidays and quieter work periods by saving a little extra.
How Bidwell Accountancy Can Help Freelancers and Contractors
At Bidwell Accountancy Ltd, we make money management simple. Our team can help you:
Understand allowable expenses and tax deductions
Set up efficient bookkeeping systems
Manage cash flow and budgeting
Prepare accurate tax returns and avoid penalties
Plan ahead with tax-efficient strategies
Whether you’re just starting out as a freelancer or have been contracting for years, we’re here to give you the confidence and clarity you need to focus on your business.
📞 Call us today on 01908 380391 or email info@bidwellaccountancy.com
to see how we can support you.
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