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Accounting for Freelancers & Sole Traders: Get Rounded
Getting organized and paid is critical to the success of all freelancing endeavours. Rounded is a simple accounting tool designed for sole traders and freelancers that minimises accounting headaches, leaving more time to focus on business growth and development.
Self employed professionals, freelancers, and sole traders make up the greater part of the Australian business economy. 61 percent of all Australian businesses are sole traders with no employees – yet need an Australian small business accounting solution.
Operating your freelance operation as a sole trader can be quite liberating in terms of the clients & work you engage with. Flying solo, however, places a large amount of responsibility on business owners tax wise. While self-employed professionals are able to build their own business and work on their own terms, they must also manage every aspect of their business personally — including accounting, invoicing, and time tracking.
Ensuring that your small business is managing accounting tasks efficiently and accurately is essential in order to ensure that you are tax-compliant. An effective accounting strategy demands accuracy in invoicing, expense tracking, remittance management, and more — all of which can quickly take up a significant amount of a freelancer’s schedule.
What is Rounded?
Rounded is a cloud-based Australian small business accounting tool designed specifically for freelancers and sole traders. Rather than provide users with a massive selection of complex accounting and reporting tools, Rounded is focused on providing streamlined, easy to use functions that allow sole traders to focus on their business, rather than number crunching.
Rounded is primarily targeted towards freelancers, such as photographers, creative professionals, and self-employed trades professionals. Engaging the services of a professional accounting or financial advisory firm for tasks such as invoicing or expense tracking can be prohibitively expensive for small business owners.
Rounded allows professionals to replace time-consuming and complicated tools such as spreadsheets and invoicing tools, providing a straightforward and streamlined method of issuing invoices and logging your expenses.
Rounded Features & Functionality
Rounded delivers three main functions that help small business owners and sole traders get a grip on complex daily accounting tasks.
The invoicing and quote features offered by Rounded allow users to create customised invoices complete with business logos, itemisation, tax, and business details in seconds.
A major advantage delivered by Rounded is the integrated payment function. Using Rounded, it’s possible to create invoices that can be paid via credit card online, speeding up the remittance process. Rounded also automatically reminds clients of overdue payments when necessary.
Expense tracking is an essential element of any effective tax strategy for sole traders. Spreadsheets and tax receipt collections can quickly get out of control, making tax time far more difficult than it needs to be. Rounded allows users to connect an Australian bank account or credit card helping to automatically log business related expenses. It also helps in making client reimbursement and sales tax tracking simple.
Lastly, time tracking is one of the most important factors when it comes to getting paid as a freelancer or sole trader. Rounded delivers powerful time tracking and reporting features that break down work into date ranges, billed and unbilled, or by clients and projects.
Rounded Pricing & Plans
As a freelancer accounting solution Rounded is fairly cost effective and offers a 14 day trial plan so you get used to the features. Rounded’s pricing page outlines two packages, Starter and Pro.
Rounded’s Starter plan starts at $15 per month and is designed for newer small businesses, and allows users to track unlimited clients, send unlimited invoices, and unlimited quotes. Functions such as recurring invoices and credit card payment acceptance are included in the Starter package, as well as payment reminders, time tracking, expense tracking, and tax tools.
The Pro plan starts at $20 per month and offers the same functionality as the Rounded Starter plan, but includes additional functionality for tax tracking such as bank account connection functionality. It also offers the ability to generate tax reports that can be shared with accountants or financial professionals.
Is Rounded the Right Accounting Tool for Your Small Business?
Accounting and invoicing tools can dramatically enhance the productivity and profitability of any small business. Rounded is a simple and effective method of invoicing, receiving payments, and tracking work time, and is an ideal solution for sole traders and freelancers seeking an easy way to streamline accounting tasks.
Once you’ve setup a company or have employees that when it’s time to consider larger accounting platforms such as Xero to manage your payroll or produce a balance sheet.
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Stuart Reynolds is the founder of Fullstack Advisory, an award-winning accounting firm for businesses leading the future. He is a 3rd generation accountant who specialises in tech companies, agencies and entrepreneurs.