Freelance Glossary > P > Profit

Profit

Profit is the financial gain a business makes after deducting all of its expenses from its revenue. For freelancers, profit is the amount of money they earn from their freelance work after subtracting all of their business expenses, such as equipment, supplies, office rent, and utilities.

Accurately measuring profit as a freelancer can be a bit challenging because there are many different expenses to consider, and some expenses may be harder to quantify than others. However, it is essential to track and measure profit to understand the financial health of the business and to make informed decisions about pricing, budgeting, and investing in the business.

To accurately measure profit as a freelancer, it is important to:

email alerts

Get Weekly Freelance Gigs via Email

Enter your freelancing address and we'll send you a FREE curated list of freelance jobs in your top category every week.

  1. Track all income: Keep track of all the income you earn from your freelance work, including payments from clients, income from side gigs, and any other sources of income related to your business.
  2. Keep detailed records of all expenses: Record all expenses related to your business, including receipts for equipment, supplies, and other materials. See “Expense Tracking.”
  3. Use accounting software or a spreadsheet: Use accounting software or a spreadsheet to track income and expenses, and regularly update the records to ensure they are accurate and up-to-date.
  4. Calculate net profit: Once you have tracked all income and expenses, subtract the total expenses from the total income to calculate your net profit.

By regularly tracking income and expenses and accurately measuring profit, freelancers can make informed decisions about their business finances, set goals for growth and profitability, and stay on top of their tax liability.

See also: Profit-First Strategy, Net Profit, Profit & loss (P&L) Statement, ROI (Return on Investment)

Articles that talk about "Profit"

11 Profitable Side Jobs You Can Start in a Weekend (2024)

11 Profitable Side Jobs You Can Start in a Weekend (2024)

Side jobs have been my saving grace over the last decade. What started as a small freelance gig back in 2013 has grown into my...

5 Ways to Upsell Your Freelance Services & Boost Profit

5 Ways to Upsell Your Freelance Services & Boost Profit

Upselling your freelance services to clients you’ve already closed can be a great way to boost your profit without having to find new clients. So...

97 Habits of insanely profitable freelancers

97 Habits of insanely profitable freelancers

If you want to be insanely profitable doing what you love then you need to find a happy balance between art and commerce. Basically, you...

5 Freelance Money Management Tips & Tools to Stay Profitable

5 Freelance Money Management Tips & Tools to Stay Profitable

Freelance money management systems help you keep your small business or freelancer financials on track while you focus on growth and expansion. Apart from that,...

More articles about "Profit"