Been trying to get a handle on my finances lately. I’ve got a mix of ongoing and short-term projects, but predicting cash flow is tricky. Some clients pay quickly, others take forever.
Anyone have a system for forecasting income when your work is contract-based? Curious how others manage this.
Nah I don’t do any of that stuff.
Just keep track in my head mostly.
If I got enough for bills I’m good.
I keep it simple. Got a basic Excel sheet with columns for each month. Fill in the sure things first, like regular clients. For one-offs, I put 'em down when I think I’ll finish and get paid.
Big thing is, don’t count on getting paid right away. Always add a couple weeks to when you think you’ll see the money. Helps avoid nasty surprises.
I also keep some cash set aside, about two months of bills. Comes in handy when checks are slow.
Main thing is to stay on top of your invoicing. Send 'em out as soon as the work’s done. Don’t let that slide or you’ll always be chasing money.
I use a simple spreadsheet to track projects and payments. List ongoing work first, then add one-offs as they come in.
Always pad your payment dates. If a client usually pays in 30 days, pencil it in for 45. Helps avoid cash crunches.
Keep invoicing religiously. The quicker you bill, the quicker you get paid. No exceptions.
I’ve been winging it for years, but finally got serious about forecasting. Here’s my not-so-fancy system:
I always assume I’ll get paid later than expected. 30-day terms? I put it down for 45 days out. Keeps me from getting too optimistic.
My secret weapon? A buffer account. I squirrel away a chunk of each payment into a separate savings account. It’s my lifeline when invoices are moving slow.
And yeah, invoicing. I used to procrastinate, but now I send them out same day I finish a project. No exceptions.
It’s not perfect, but it keeps me from sweating bullets every month. And hey, sometimes I’m pleasantly surprised when money shows up early.
I don’t do much forecasting. Just keep track of jobs in a notebook. Write down when I’m supposed to get paid. If money’s tight, I pick up extra work. Simple as that.
I’ve been running my business for a while now, and forecasting income is always a bit of a juggling act. Here’s what’s worked for me:
I keep a simple spreadsheet with columns for each month. I list out my ongoing contracts and their expected payments. For short-term projects, I estimate when I think they’ll wrap up and when I’ll likely get paid.
But here’s the real trick - I always underestimate. If a client usually pays in 30 days, I mark it down for 45. If a project might finish mid-month, I put it in for the next month.
This way, I’m never caught off guard if payments are late. And if they come in early, it’s a nice surprise.
I also keep a “cushion” in my business account. It’s about 3 months of expenses. This helps smooth out those times when payments are slow.
It’s not perfect, but it’s kept me out of trouble so far. The key is to be realistic and a bit pessimistic in your estimates.