Freelancing holds vast opportunities for career growth, networking, and financial stability. Employees, homemakers, and even unemployed people have turned to freelancing to earn extra income and explore the possibilities of their career paths.
Apart from the opportunities that it presents, people enjoy various benefits from working freelance.
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Benefits of Freelancing
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Increasing demand
Companies nowadays recognize the need to outsource talents. Sometimes, new positions are being created to accommodate freelancers. This is a great opportunity for those with specialties, or those branching out from their regular careers. Popular positions are in the fields of web development, administrative work, content, and customer support.
Taking advantage of the rising demand for freelancers leads to more earnings and opportunities for growth.
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Flexibility and time management
As a freelancer, you are your own boss. You may choose where to work, whether at home, coffee shop, or your own office. It also allows you to work on weekends, after your regular work shift, or any other convenient time.
You can also manage your time according to what works best for you. That includes scheduling your interaction with clients, preparing materials, presenting your output, and enjoying the fruits of your labor.
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Control over work pace
Aside from being able to work at any time, you can control how much work you can put in. If you’re a full-time freelancer, you can use your time to your advantage and accept as many projects as you can.
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Higher income
The prospect of earning in dollars is enough to draw in freelancers, but in general, freelancing augments your current salary or gives you a new source of income. Some employers pay good rates, but if you have the experience and expertise to show for it, you can name your price or negotiate.
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More personal quality time
Since you work at your own pace and setting, that leaves you more time to enjoy the things you want. You can do household chores, study, spend more time with your family and friends, travel, or take care of yourself (like getting a check-up). Just remember to manage your time well in case you decide to squeeze in a job or two while you’re at ease.
Freelancing already has a lot of personal benefits, but more can be gained when you register yourself with the Bureau of Internal Revenue (BIR). Believe it or not, registering with the BIR is expected of every earning individual or company. The sole purpose for this is to ensure that you pay your taxes.
You may register as a sole proprietor if your freelance work involves a small or home-based business, or as an independent professional, if you provide services without being affiliated with any company. Either way, you gain various advantages when you are recognized as a tax-paying freelancer.
Benefits of Registering as a Freelancer
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A sense of legitimacy
When you’re registered with the BIR and you issue official receipts with your name on it, clients will feel more confident that they’re obtaining the services of a legitimate business. Recognition as a registered business also helps you get your name across.
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Tax payments as proof of earnings
Your annual income tax return (BIR Form 1701) serves as your proof of earnings. Keep your papers close and present them when applying for loans from banks, SSS, and other lending companies. You can also use it when applying for credit cards.
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Avoiding penalties
Paying taxes may be tedious, but in the long run it will help keep your business or income generation secure. As long as you pay your taxes on time, you can avoid penalties and surcharges.
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Avoiding charges of tax evasion
The ultimate fear of businesses, tax evasion is punishable by law. Section 74 of the National Internal Revenue Code of 1997 simply states that as long as you render services and earn from them, you need to pay the corresponding taxes.
As a taxpayer, you are expected to settle your quarterly and annual income tax, business taxes, and local tax requirements. When you register, the BIR will brief you on your duties, so pay attention.
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Fulfilling your moral and ethical obligations
Registering helps you sleep better at night, knowing you have fulfilled your duties as a worker, an upright business provider, and a citizen of the Philippines.
Whether as a professional or a small-time businessman, registering has advantages that further boost your work and your brand, and the benefits gained as a freelancer.
