Been freelancing for years but never took financial reporting beyond basic P&L tracking seriously.
I’m starting to see I might be overlooking important insights like cash flow and profitability by client type. Right now, I’m just using a simple spreadsheet, but I wonder if there’s a more systematic approach out there.
What key metrics do you track monthly, and how detailed do you get with your expenses and revenue categorization?
Cash flow forecasts have really saved me a few times. I usually project about 3 months ahead based on:
For tracking, I split revenue into retainer work and one-time projects. The retainer clients give you stable income while project work is for growth.
For expenses, I track business development separately. This includes networking events, courses, and new tools. It helps to see what actually brings in new clients versus what just seems productive.
One strategy that really helped was tracking my effective hourly rate by client. Some clients require more time for emails and revisions. The headline rate might look good, but the real time spent tells a different story.
I find quarterly reviews work better for me than monthly. Monthly sometimes feels like busywork, but quarterly shows me real patterns to focus on.
I focus on monthly income and expenses too. Categorizing by job type helps identify profitable clients.
Cash flow tracking is essential. Know when you receive payments and when bills are due. A basic spreadsheet works if you keep it updated.
Monthly cash flow is what matters most. I track money coming in versus money going out each month. Break down revenue by job type so you know which work pays best. For expenses, I separate materials, labor, equipment, and overhead. Takes maybe 30 minutes monthly to update everything. The real trick is billing clients fast and following up on late payments. Your spreadsheet works fine if you actually use it.
I just keep it simple. Track income and expenses. Save receipts for parts and fuel. That’s all I need.