If you’re a freelance model, you’ll know that managing your work can often feel like a juggling act – no less true when it comes to your finances. On one hand, there’s making sure you are operating under the letter of the law… then, there’s invoicing…plus, there’s keeping track of your accounts… and most importantly, there’s ensuring that you get paid on time.
How to keep track of it all? Here are StarCentral Magazine’s top FAQ’s for your finances as a freelance model.
As a freelance model, you will need to consider how you will operate. It’s pretty much essential that you acquire an ABN (Australian Business Number) as companies and individuals will ask for this when you invoice, or if they pay you for your work via direct debit. If you consider yourself a professional it is likely that the need to have an ABN will arise at some point in the future, so it’s always a good idea to get this component of your financial set-up in order as your very first port-of-call.
Long before it comes to tax time, you’ll need to know how to deal with taxation as a freelance model. At the very least you need a Tax File Number (TFN), and you might want to consider registering for Pay As You Go Installments (PAYG), depending on the scope of your work. This can allow you to put away enough money to manage any taxation costs and debts come End of the Financial Year (EOFY).
While you don’t have to pay yourself superannuation as a freelance model, you certainly don’t want to leave yourself with an amount that isn’t sufficient to live off when you become too old to continue your work. You’re going to have to consider just how much you might need in order to support yourself when you retire. You can make personal super contributions that allow you to manage financial insecurity, particularly when it comes to your superannuation.
When you’re a freelance model it’s likely that you will need to send invoices to collect payment for completed projects. Generally, once you send an invoice, those that contract your services have a three-month window in which to deposit the money in your bank account (or, to find a way to pay you via some other method). However, you can set your own invoicing terms and/or use a contract. This will help you to meet your commitments – like paying the rent and bills on time. You can use templates and use email/SMS to follow up. Always use clear, intelligible language and remember to always double check all your figures and details before you hit send.
When working as a freelance model your finances can get a little messy. Always keep a separate business account in order to accurately keep track of your profits and expenses. There can be a lot of hidden costs associated with modeling (travel/beauty/health related) so, always consider the true cost of undertaking an assignment. You need to be diligent and keep track of your earnings in order to manage your finances into the future.
Did you know that as a freelance model it is very likely that you are not covered for injuries and illness when working on an assignment? Taking out personal insurance to cover you (should something untoward happen) is a good idea in protecting your career interests and a potential loss of income should you be unfit to work. Always make sure you properly assess a location to ensure that it is safe and never allow someone to put you in danger for the sake of a good shot.
Tick off your financial FAQs
So, what do you need to ‘tick off’ to make sure you’re on track? We hope you have found this list useful and wish you the best in your future career endeavours – the team at StarCentral.