FreshBooks Study: Freelancer's Money and Business Challenges

TORONTO, Feb. 6, 2019 /PRNewswire/ - FreshBooks today announces the results of a study that looks at the money and business challenges US-based freelancers face today.

27 million Americans plan to become self-employed by 2020. To make the transition from traditional employment to a freelance career easier, Money Matters - The Freelancer Finance Report sheds light on the challenges people who work for themselves face at different stages of running their business. The report also provides insight into the financial habits the top-earning freelancers have in common.

For the study, FreshBooks partnered with Research Now to survey 2,500 people in the US who work full time as independent professionals or small business owners.

"Freelance income is often inconsistent, which makes money management especially difficult. Whether you're just starting out and searching for freelancing tips for beginners, or you're an established small business that wants to maximize your earnings, the data and insights from FreshBooks report will help you find financial success in self-employment, faster" said Matthew Baker, VP of Strategy, FreshBooks.

Key Findings from the Study Include:

The Top Challenges Freelancers Face

• 37% of freelancers with businesses under two years old say their biggest challenge is finding new customers.
• 1 in 4 freelancers say cash flow is a major challenge they regularly face when working for themselves.
• As freelancers gain five years or more experience, their most significant struggle shifts to finding talented staff or contractors.

35% of Freelancers Struggle Significantly with Financial Management

• The majority of freelancers who earn $100,000 or more regularly implement financial best practices such as maximizing tax write offs, and separating personal and business finances.
• Conversely, 1 in 10 freelancers who earn $50,000 or less don't implement any financial best practices.

Freelancers Feel at Odds with the Current Tax Code

• 20% of freelancers spend 10 hours a year or more filing their taxes, which is three times as long as traditional employees.
• Freelancers are 50% more likely than a traditional employee to pay a professional to file their taxes.
• 31% of freelancers say they'd rather get stuck in line at the DMV than file their taxes.

For more insights into the new world of self-employment, visit FreshBooks Data and Research.

About FreshBooks
FreshBooks is the #1 invoicing and accounting software in the cloud designed exclusively for freelancers and growing service-based businesses. The company has helped more than 20 million people process billions of dollars through its easy-to-use invoicing, time-tracking, expense management, and online payment features. Recognized with eight Stevie awards for best customer service in the world, the company's mantra is to "execute extraordinary experiences everyday." Based in Toronto, Canada, FreshBooks serves paying customers in 160 countries. FreshBooks.com

SOURCE FreshBooks

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