EOFY, the F is for Freelancer

EOFY, the F is for Freelancer

As this financial year comes to a close and we enter glorious June, it's time to take stock, and I'm not talking chicken...

As this financial year comes to a close and we enter glorious June, it's time to take stock, and I'm not talking chicken...

If you struggle to put a dollar amount on your time, click here to grab my Free Pricing Calculator here and run your numbers for yourself.

It’s the best way to work out your unique recipe for your prices.

As a freelancer, this time of year used to send me into a bit of a panic. I was so scared of making a financial mistake that cost more than money. Maybe I have watched too many tv shows where someone was accused of stealing from their own company…

**DISCLAIMER** There are things in here that I will be giving recommendations on because they are what I do. These are simply things that I do now that I wish 5 years ago me did. Also, and it goes without saying, but I am not an accountant or financial advisor. For specific advice, follow the first thing on the list.

And two last clarifications; Superannuation (or Super) is an Aussie version of a retirements and EOFY stands for End of Financial Year. Another thing we Aussies do different is our Financial Year runs June to July, right in the middle of the year. Don’t ask me why, I haven’t the faintest idea.

The 5 things I recommend you do between now and July 1st

1. Find an accountant you can trust

The relationship I have with my accountant is one I am so grateful to have. The good ones will answer your questions, help you find ways to problem-solve, they will have your best interests at heart. Gone are the days that you simply check in each tax time, create a relationship with them and it will pay dividends for years to come.

2. Take stock of your expenses and see where you can cut the fat

I have been absolutely guilty of having multiple subscriptions or things that I unnecessarily pay for. Things that pile up or create double ups, or even free trials that I accidentally forgot to cancel. These things get away from us, so EOFY is a great time to look at whether you need them still.

You may also want to look at re-evaluating what you still need and see whether negotiation is on the table. One of the little known secrets I shared with my subscribers in my newsletter was how to negotiate your Adobe subscription down. There is yet to be a single months I pay that horrendous $75+ subscription fee, and it’s all legit.

Wanna pinch my Cut the Fat Expenses Worksheet?

Pop your email below and I’ll send you a copy of the system I use to audit my expenses and cut the fat!

3. Reconsider your actual accounting software

It’s no secret I am a passionate Freshbooks user (I mean I did put myself in the position of being their first Australian Case Study and success story), but I have been using it for almost 10 years now and it definitely makes things easier. Between the expenses being generated from my linked bank accounts to being able to see where money is coming in and going out from the dashboard, it makes things feel more professional, like I’m actually running a business or something.

4. Contributions to future-you are a good thing

Super is one of those things I just KNOW you’ve probably neglected. When we freelance and work for ourselves, it’s one of the first things that gets overlooked. But here is the secret, if you contribute to your super, it comes off your taxable income. This means that you actually pay LESS tax by doing what is called a Voluntary Super Contribution. It may feel like you’re throwing money somewhere you can’t access it, but future you will thank you.

As it stands currently in 2023, the maximum you can contribute to your super is $27,500, and this then comes off your taxable income and helps future you at the same time. And as someone who has a scary tax bill come July, this sort of thing helps. To do this, it will depend on what super fund you are with, so do a little research, get on chat and get it sorted before EOFY hits and make it count, literally.

5. Let your clients know prices are going up

EOFY is the perfect milestone moment to increase your rates. It just makes business sense. So here is a tip to help you use this change to get more work before July 1st. When we raise our rates, its a good practise to let our current clients know so they aren’t surprised next time they get you to quote a job. But a really goes way to use this shift is to make a marketing tactic out of it.

Below I have drafted an email for you to send your clients to let them know prices are going up AND if they want to take advantage of the current rate, to book in their next job now. You’d be shocked how often this not only brings in that little more work, but prompts the client to look at your services with a little different value mindset.

Hi [client],

As this financial year comes to an end, I wanted to take a moment to thank you for the work we have done together over the past year. It’s been incredible.

I also wanted to let you know that as of July 1st I will be adjusting my rates. This is to reflect the increase in skills that I now am bringing to the table, as well as maintaining that level of service you and I have both come to expect.

[You are welcome to share the new rate, or don’t. That’s totally up to you]

If you would like to take advantage of the current rates, reply to this email with your next brief and we can get it locked in asap.

Looking forward to working together

Like I mentioned at the start, this time can be stressful as a pressure cook of in the Masterchef Kitchen. But I want you to take a deep breath, because it’s ok. Us creative types often get tripped up when it comes to money because it’s not our area of genius. At least, thats my experience and plenty of other creatives that I talk to about pricing.

Breathe. You got this. We both do.

Good advice is like a delicious pie, it deserves to be shared with others...

Need help raising your rates? Join my Free 5 Day Raise your Rates Challenge and you’ll be charging more before this time next week.

Still hungry? Check these dishes out…