Total software subscriptions for freelancing.
Subscription spend is hard to see because it arrives on two different clocks. Annualising both — monthly plans times twelve, plus the annual invoices as they are — puts everything on one figure you can compare against revenue. The per-seat monthly number is the one to watch as a team grows, since it is what each additional person actually costs you before they bill a single hour.
Annual net
monthly total x 12 + annual total
Annual gross
net x (1 + tax rate)
Per seat
gross / (12 x seats)
Tax treatment of business software varies by jurisdiction and registration status. Confirm deductibility and recoverability with a qualified accountant.
Usually around 15-20% cheaper per year, but it costs flexibility: you have paid for twelve months whether or not you still need the tool. Annualise both ways before committing.
If you are registered for VAT or GST, business software tax is normally recoverable as input tax, which makes the net figure the true cost. Confirm treatment with your accountant.