A freelance budget; establishment, operating and liquidity budget
To create the best overview of your business finances, you can choose to divide your budget into three.
That means getting one made, respectively establishment, operating and a liquidity budget.
Virksomhedsguiden.dk has several templates and templates freely available to you that make budgeting manageable.
A budget can be set for 1 month, 3 months, half a year ahead, or any time period you want.
In order to create as much stability as possible, it is recommended to set a long-term budget. It can, for example, be for half or a full year, where you can continuously adjust the budget.
A start-up budget is most relevant for you who want to start up as a freelancer. The establishment budget gives you an overview of how much it will cost you to start your freelance business, so you get off to a good start.
Fortunately, there are usually not many expenses associated with starting a sole proprietorship.
However, there are some establishment costs that you should include:
- Establishing a business account
- Subscription to accounting software
- Equipment to be acquired at the start (e.g. computer, camera, etc.)
- Office furniture
With a establishment budget you can secure an overview of how much money you need to get your business off to a good start.
One operating budget provides an overview of the expenses and income you expect to have as a freelancer. In the operating budget, you must define your revenue and insert the fixed and variable expenses, which we mentioned in previous sections.
It allows you to predict how your business will fare and whether your business will make a profit.
Every month you can compare your operating budget with your actual accounts, so that your operating budget is always set realistically.
About one the liquidity budget is necessary for you depends somewhat on the type of sole proprietorship you run.
A liquidity budget tells you whether your company has enough money in the bank to pay the bills that may come up.
Overview of payments
It will also give you an overview of when the various deposits and withdrawals must be made. Therefore, this type of budget is most relevant if you have more or larger expenses that you want to make sure are paid on time.
If your business is very simple and you already feel that the operating budget itself has given you a thorough overview, you can simply disregard a liquidity budget.
Your type of budget will also contribute to a greater overview of your payment of tax and VAT in your independent freelance business.
create free user
An easier freelance life with Factofly
create free user
Be a freelancer without hassle and get paid without your own CVR number with Factofly. We help almost 3,000 others with an everyday life without administration.