Though budgeting is key to your business’s future, it is not always easy – especially if you are self-employed, freelancing, contracting, or commission-based. One month you have work rolling in from every client – and the next month, you get barely any. While it is tough to budget on a somewhat unpredictable income, your business can continue to excel. Here is a little advice on how to budget on irregular income; we hope you find it useful!

  1. Practise good bookkeeping

To budget effectively, you need to be able to view your outgoings with ease. We recommend using cloud-based software like QuickBooks, you can update your books any time, anywhere.

  1. File your bills well

Use receipt capture on QuickBooks

  1. Work out a comfortable minimum

Figure out your bare-bones budget – this is the amount you absolutely need to keep your family & household going. Bills, food, childcare, medication – as long as you’ve got enough to cover these, you’re doing OK!

  1. Save extra money on a good month

Though tempting, try not to spend extra money on a good month – put it into a savings account with reasonable benefits instead.

  1. Open a business bank account

…So you can pay yourself a salary and leave enough in for your year-end taxes. Our accountants have a list of the best business bank accounts accepting new applications – kindly get in touch with us to learn more.

  1. Know which expenses you can claim back

There are certain `allowable expenses` you can claim back as a self-employed or freelance worker. These are typical costs you need to pay to keep your business running – including utility bills, equipment, marketing, and even training courses and client entertainment. Here is an up-to-date list on .gov.uk.

  1. Ask an experienced accountant for advice

Our accountants have 40+ years of experience in bookkeeping and accounts for professionals with irregular income. It helps to know you have a friendly ear if you hit a tough month!