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.