• Breaking News

    What can a freelancer do to improve cash flow?

    The most important part of improving cash flow is having a reliable and up-to-date cash flow forecast.  This provides the information which highlights the main cash flow issues.

    As a freelancer, there are many ways to improve your cash flow.


    Basic Management Tips For Improving Cash Flow:


    • Make preparing invoices one of your highest priorities.
    • Before sending the first invoice to a new customer, ask for the name of the person who authorizes the payment, and addresses the invoice to that person.
    • Provide customers with information allowing them to make payments directly to your bank account.
    • Include due dates on all invoices that you send out.
    • Send invoices separately from statements.
    • Send stamped, self-addressed envelopes with the invoices.
    • Reduce the grace period for late payment, and increase the frequency of reminders to late payers.
    • Copy incoming cheques, depositing the originals immediately and using the copies for cheque posting and accounting.
    • Have bookkeeping pay suppliers on a chronological basis, rather than the easy routine of paying all on one day.
    • Refine the accuracy of your revenue forecasts.

    Mastering cash flow — and ensuring that you can afford to pay your bills and feed your family — is critical to being a successful freelancer.

    No comments