From the Get-Go: Protection for A Freelancer

Concerned about freelance downfall? Without the right things set up and put in place, your freelance career could be in jeopardy. You need the correct setup to stay protected and make sure your business can move forward. Here, you can find the right tips and tricks for entrepreneurs to protect their freelance businesses.

Business insurance and certificates

It is good to get a business insurance certificate so that you are covered in the case of any legal instances. If you are not properly insured, you could get into a lot of trouble. This could cost you a lot of money and put your business at high risk. Hence, be sure to seek insurance as soon as you decide to open your business to be safe.

Now, let’s discuss financial safety. 

Budget plans in check

Be sure to keep business and individual budget plans in check! Keep separate accounts for your freelance income and for your expenses. It’s easier to categorize and report business outflow and finance during tax season.

Invoicing and accounting software

Use this software to keep track of your income, expenses, and invoices. Some examples of invoicing and accounting software are FreshBooks and Wave. The right software can save you precious time and give insights into your business’s financial health. It will also help you get paid on time.

Emergency funds 

Build emergency funds to cover your unexpected emergency expenses such as loss of job, major illnesses, etc. Aim to save at least 3–6 months of living expenses for emergency funds to help you avoid these situations and come out from critical situations.

Now, let’s talk about property protection. 

Document agreements 

Any contracts or agreements made with a client should always be documented, signed, and understood by all parties. A contract or agreement does not have to be written in legal terms; just as long as it’s in writing and signed by all parties. If a client does not want to sign a contract or agreement then think twice about working with them. Contracts or agreements allow you to outline or define a project, including, what the client is paying for, project scope, timelines or due dates, payment terms, and how payments are made. Contracts or agreements help protect you and your business. 

Copyrighting 

Protect your intellectual property by copyrighting your original work. This can be anything from creative content to trademarks or designs. Use watermarks or digital signatures to prevent unauthorized use and enforce your intellectual property rights.

Liability insurance

Professional liability insurance, also known as errors and omissions insurance (EO), is a form of liability insurance that helps protect professional advice. This service prevents individuals and companies from bearing the full cost of defending against a client’s negligence claim and damages awarded in a civil lawsuit.

And lastly, we need to talk about cybersecurity protection. 

Digital assets

By using online storage outlets that are encrypted, such as Google Drive and Microsoft OneDrive, all sensitive data from clients and projects can be safely, but more importantly, securely, stored. Unauthorized access to data or data loss will be a thing of the past. Also, the activation of two-factor authorization processes and the routine backing up of data must be mandatory.

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