fbpx

Managing Your Money From Coworking

There are many different kinds of coworking that we can enjoy. But they all contain one core principle – that you get paid for whatever work you do. This may sound simple, but the entire concept of coworking means that most people involved will probably be self-employed. This means that you will have to be twice as focused on making sure that you manage your money effectively. Take a look at a few of the tips to make sure that your coworking initiative is a lasting success.

Consider your payment method

Most coworkers are either self-employed or they work for a variety of different employers. This means that you might be paid with a variety of different payment methods. Plus things get even more complicated when you work for companies based overseas who pay in different currencies.

This is why it’s essential that you consider which payment method works best in terms of how you get paid. Most people will want to be paid via a bank transfer, but such an option isn’t always possible when dealing with overseas clients. Similarly, PayPal might be a suitable option for dealing with friends, but using the ewallet to receive large payments from businesses might see PayPal taking fees from the payment that you’d receive. This might not initially seem like a lot but it could soon spell trouble for the success of your business.

As a result, you should check to see which payment method is best suited for your business. If you take a look at the online bookmakers on wetten.com, you’ll see how each company accepts payments with a wide variety of payment options. Each of these payment providers has different limits, fees and processing times, so be sure to factor in such features when choosing how you get paid. 

Using available money management tools

Staying organised is one of the hardest things about coworking. Chances are that you’ll be focusing on keeping the money coming in without scheduling yourself time to go through all of those invoices. 

This is why it can pay to get one of the latest invoicing tools. Apps like FreshBooks and QuickBooks can prove to be invaluable in helping freelancers stay on top of their finances. Not only will you be able to create invoices for dozens of clients, but they can also prove to be invaluable when it comes to that all-important self assessment at the end of the tax year. 

There are also plenty of apps available for helping you make sense of transactions with overseas clients. Simply downloading one of the XE apps can prove to be invaluable for making sure that you understand exactly how much you’re being paid whether it’s in euros, US dollars or any other currency.

Plan your time wisely

It’s essential that you set yourself a reasonable schedule for what you hope to achieve with your coworking project every month, week and even day. A goal-orientated approach will make it much simpler to see when you’re hitting your targets or whether you need to work a little harder. Such practices are all the more essential in coworking where it can be all too easy to get distracted with what your coworkers are doing. It might even be worth checking out some of the time management apps like Clockify to make sure that you know how much time you’re spending on a particular project.

Such time management procedures are also essential for how you manage your money. It might not be the reason why you started out in your business endeavours, but it’s essential that you get paid in a timely manner. It’s wise to set aside a particular afternoon to go through your invoices and chase up any overdue payments.

While it’s important to retain good relationships with your clients, there is simply no excuse for not being paid for all of your hard work. If a client takes any longer than a calendar month to pay you what’s owed, then you can take appropriate action like refusing to deliver any more work. Just remember to include an expected payment times when you send out your invoices. All of which should help you enjoy coworking for much longer. 

Ajay Deep

Ajay Deep is the brain behind Coworking Mag. He founded this website to help startups and aspiring entrepreneurs find a coworking space in their city. He is a successful entrepreneur who started and scaled a bunch of startups – all from shared office spaces. He has visited hundreds of coworking spaces in different countries and is now an investor in this evergrowing idea of developing new coworking spaces. You may reach Ajay Deep at hello@coworkingmag.com
Back to top button