Starting your own freelancing Business is a great way to build independence and freedom, but it isn't all sunshine and roses. There's no guarantee that your new venture will be instantly successful, especially if you don't know these financial facts:

Keeping On Top Of Your Books Is A Lot Harder Than You May Think

Managing your Money as a freelancer is about a lot more than simply remembering to invoice your clients. You need to keep an eye on expenses, do your best to ensure that you have positive cash flow, account for taxes and super contributions, and more.

If you want to avoid getting in trouble with the bank (or worse, the tax man), your books need to be kept perfectly balanced at all times, and this is no small task. If you're at all concerned, it's definitely worth outsourcing the job to a member of a qualified team of SMSF Accountants. Not only will this ensure that your business finances are kept in great shape, but they can also help you prepare for the future and keep your super in order.

Making Money Is As Much About Your Mindset As It Is About Your Skills

You could be the absolute best in the world at what you do, but if you're not in the right headspace, your business isn't going to succeed. Doing well as a freelancer is all about maintaining your drive and growth mindset. If you struggle with either, it's worth looking into a group mentoring program for small businesses.

While some may be able to advance on their own, there's no shame in needing a little extra support in order to get into the right mentality for success. In fact, it's proven because we humans are such social animals, we often perform far better in groups than as individuals.

An Entire Office Isn't Always Necessary

While having a prestigious address can certainly help advance your business, an Entire Office to yourself can be a little excessive, especially if your turnover isn't established enough for you to be able to comfortably pay the bills. A great way to save money in this regard is to look into a shared office space. You can also consider going completely without if your business model allows for this kind of operation.

Not All Marketing Is Created Equal

Unless you're a local business and have incredibly strong word-of-mouth support in the community, you're probably going to have to invest in marketing to get your business off the ground. Each medium, however, has its own set of challenges to overcome, and your ROI will vary greatly.

SEO, for example, is by far the best long-term strategy as it provides the most sustainable ROI over time. Advertisements are great for instant results, social media is perfect for engaging with your target demographic, and useful promotional products are wonderful for passive marketing once they're out in the world.

Before launching, you need to decide which area you're going to focus your time and money on and become an expert (or hire one). Otherwise, you may as well be throwing your money into the wind.

Your business finances are impacted by many aspects, and they aren't always obvious. As a freelancer, it is particularly important to keep on top of things in order to avoid running into issues that could derail your dreams.

Take note of these four facts, and remember them when you're outlining your goals and business plan for the coming year. They'll help you ensure that you're staying on track. Good luck, and happy freelancing!