By Ashley Preen
April 24, 2020
It’s hard to tell which sector of business owners are hit the hardest during the multitudinous lockdowns going on in the world right now: Small freelancers, startups, contractors, large businesses?
Each sector has its unique challenges and expenses which need to be dealt with during the pandemic.
One thing is for certain: No matter your business type, you can’t stop working. You can’t stop earning an income. COVID-19 is a challenge for freelancers and businesses and must be dealt with as a challenge. All successful businesses go through challenges, and the ones which survive are the ones which tackle those resolutely and with determination.
It helps to think of the current world situation like a football match.
The most important thing you must do right now now now is not a physical thing, but a mental thing. No matter what you do, you must not give up and you must decide in your heart and mind that you will make it through this.
If you are a freelancer, you simply do not have the option to give up. You are your business, and no one is going to bail you out.
Employees are getting 80 per cent of their salaries paid by the UK government. Freelancers have no such option. They can apply for Universal Credit like all others who are falling on tough times, but if your freelance business was in clover before the crisis hit, then welfare is not going to cut it when it comes to paying bills at the end of the month. Successful concerns have higher bills.
Perhaps you feel it is difficult to stay positive during this seemingly doom-filled era, but there are a few things I can tell you to help you along:
Reading the news one might gain the impression that everything is closed and that no work is being done anywhere but this is simply not true. Take us here at Pearl Accountants. We are in full production at the moment, because we were ready for the lockdown. We also embraced and implemented cutting-edge technology in our accountancy practice a long time ago, so we are able to work 100-per-cent remotely.
If you were to call us and offer us your service, someone would answer the phone and you would be able to do business with us.
We service a lot of clients, a lot of businesses, and I can tell you with full confidence that plenty of businesses are up and running, even if they are still learning the ropes of how to work remotely.
The virus is the halftime during a football match. You don’t go to sleep during halftime. You keep warm, you limber up your muscles, you hydrate.
In short: You do all the things necessary to keep playing when the 15 minutes are up. If you let your muscles get stiff — if you entirely ignore your freelance duties during this halftime — you’ll be at a disadvantage when the whistle blows and it’s time to start kicking again.
Keeping busy is also important for your morale: Yes, there are bills to be paid. Yes, perhaps a bunch of your outdoor gigs got cancelled. Yes, this is all true. But you need to keep busy if only to keep your mind off the gloom.
The lockdown will end. And when it does you need to be back on that field and ready to play.
Now is the time to do those cold calls you always dreaded. Now is the time to scour Yell.com or Google Maps and find businesses that might be interested in what you have to offer them. Compile a list and then reach out to them.
Best case, you’ll get a client and actually line up a gig for when the lockdown is over. Worst case, you’ll actually talk to somebody, thereby making you feel slightly less lonely during this time when you’re not allowed out of doors.
If the freelance work you do can be done remotely, then you can close those deals now and start working on them now.
You need to be willing to offer discounts, sure. It doesn’t mean you must, but you should be willing to. Businesses are going to be tight and will be watching their pennies, and possibly a discount might be just the right incentive for them to give you the job.
But that doesn’t mean you must now work yourself into the ground for some ridiculously low fee like they offer on Fiverr, Upwork, and other similar sites.
Your self-esteem and sense of self-worth are vital to keeping you motivated and doing what you love. You’re probably a freelancer because you love what you do. Don’t destroy that love by working your fingers to the bone with nothing to show for it at the end but sweat on your forehead and despondency in your heart.
There are so many things a freelancer must do themselves which larger businesses simply get their staff to do:
Use this time to catch up on all those administrative tasks you never get time to do when you’re busy. Upgrade your website with DIY website creators such as Wix, GoDaddy hosting, WordPress and many others.
The key thing is to remember that this is a pause, not an end. It’s a halftime. To the degree that you practise ingenuity and invest in getting ready for the second half, you will come out of this crisis winning.
We're glad our customers are happy with our products and services. Here's what some of them said about us...
Pearl Accountants are unique as you can get. They have a great one to one service and they always answer your queries in a fast and professional manner.
I find Pearl when I opened up my limited company. I was clueless, but Pearl Accountants kindly assisted me in the best way so I felt at ease and understood how the operation works.
Everything was explained clearly in detail and I could ask as many questions as I wanted. They were never rude or impatient, just happy to be there to help.
The client had previously missed a few deadlines with HMRC and Companies House and needed a hands on approach
Wanted to ensure they have a proactive team so that no deadlines were missed and full end to end bookkeeping carried out
Client was introduced to a dedicated accountant who filed all outstanding accounts and appealed for any penalties by HMRC
After being in business for years, I must admit that Pearl Accountants are far the best accountants I have worked with. They are helpful, friendly and trust worthy and most of all provide excellent tax advice.
They provide high-level client care. I would certainly recommend Pearl Accountants to all.
Invoice factoring complications led client to inaccurate bookkeeping and unclear of clear reporting requirements
Processing the invoicing system accurately with clear and transparent management reporting was key
Processing the invoicing system accurately with clear and transparent management reporting was key
Pearl Accountants have been my accountants for many years and have been a great asset to my businesses. They have a strong team and knowledge is second to none. Very happy with the service and professionalism from them. Will continue to recommend them to my network.
Paying huge taxes without any tax efficiency and lack of understanding on various VAT aspects.
Minimise tax bills and ensure the business was compliant with HMRC and Companies House
As a startup graphic design company, we ensured the client used tax allowances and efficient payroll structures to withdraw money
Holborn based laser hair removal company joined us with a view to expanding their business on a large scale. They undertook accounting and advisory services which helped them grow above their rivals.
Holborn based laser hair removal company joined us with a view to expanding their business on a large scale. They undertook accounting and advisory services which helped them grow above their rivals.
Achieve a national presence and grow organically through current business model
We came on board and advised client on tailor made business strategies to achieve their online and brick and mortar presence.
We have been using Pearl Accountants for over 10 years and developed a very good business relationship. Very clear instructions with easy to follow accountancy system in place. Great expertise in tax efficiency, as well as business, grow and development services. One of the best-chartered accountants in town.
We have already recommended your services and will share our good experience with others in future.
It is always someone available on the phone but if not available at the time your accountant will always call you back.
Complete peace of mind with prompt and clear communication so no deadline missed.
Very satisfied.
Client was growing very fast with inability to keep track of growth with no cloud accounting setup and no integrations
Time saving on bookkeeping and clear vision of profitability management reports. Setup with cloud integrations.
Recommended a online cloud solution with time saving applications and clear breakdown of monthly profitability.
We recently migrated to Pearl Accountants from large national accounting firm. Transfer was easy and faultless. Friendly staff at Pearl lead us through the process with ease. Initially we were drawn to their service because of their attractive pricing structure. However it quickly became apparent to us that we were getting a lot more for our money than we initially thought as they are happy to stretch the engagement to all sorts of additional advice. Thumbs up to Pearl Accountants.
No clear strategy for business growth or tax planning reduction techniques
To achieve business advisory, tax planning and accurate reporting requirements
Recommended a online cloud solution with time saving applications and clear breakdown of monthly profitability.
Our client, a well established practising solicitor in the UK required a headache free service to ensure their accounting requirements were met and cloud accounting solution setup
Too much time was being consumed in bookkeeping and previous accountants missed various deadlines
More time was needed to focus on the business and ensure a firm came on board to take full ownership.
Advised client to forward us everything in ‘shoe box’ style and provided full breakdown regularly to keep informed.
They make me feel that I am a valued customer and to me what makes Pearl accountants unique is their helpful team of dedicated staff members. Their response is always prompt and it makes the daunting task of accounting really easy for me. Pearl Accountants is really a five-star accountant company.
As a franchisee tuition business, the client did not have the right advise to reduce taxes or a proactive accountant to advise where needed
Reduction in taxes through governmental tax subsidiaries and requiring more time to focus on the business.
A dedicated accountant was assigned to ensure deadlines were not missed and review of tax strategies.
Our client was in need of a specialist contractor accountant to remain compliant and ensure they did not fall in IR35.
Client required advisory on payroll and VAT solutions and filing of accounts at year end.
No clear direction on IR35 nor guidance on allowable expenses that could be claimed.
Ensure the contractor company was compliant with HMRC and Companies House and advisory on saving taxes.
Provided a full explanation and review on IR35 and guidance provided on which expenses could be claimed to reduce taxes
Our client having a property portfolio in Switzerland required a specialist accountant that understood the UK tax legislation whilst having a thorough understanding of overseas tax implications.
Overseas and UK income not declared, needed tax returns filed for previous years and appeal to HMRC for outstanding penalty
Paying taxes in the UK and overseas, wanted help understanding the tax system so avoid paying taxes twice.
Appealed successfully for prior years penalties and filed all outstanding returns. Thorough review of all tax allowances available.
Our client joined us after losing track of their finances and needed someone they could turn to for help. We came on board and reviewed their internal bookkeeping arrangements and recommended efficiency to lower their input on areas which could be outsourced to us.
No real track of profitability or clear vision of expenditure along with weak internal processes.
To achieve a clear breakdown of expenditure and ensure the current setup for bookkeeping was run more efficiently.
Recommendation on reporting packs, internal processes and online applications to integrate for payment reconciliation.