Expenses refer to the costs incurred by a freelancer in the course of running their business. For a freelance designer, understanding and managing these expenses is crucial for determining profitability and ensuring accurate tax reporting.
Scenario: Let’s consider Lisa, a freelance graphic designer. Each month, she takes on various design projects and needs to manage her expenses to maintain her business effectively.
Expenses:
Software Subscription: $50
Laptop Depreciation: $100
Office Supplies (ink and paper): $30
Website Hosting & Maintenance: $20
Online Advertising: $150
Design Conference (Networking): $200
Internet Bill (Utilities): $60
Total Expenses: $610
In this scenario, Lisa's total expense of doing freelance design business is $610 in expenses.