Been freelancing for years, but my financial planning is a mess. I’ve got clients who pay on time, others who are always late. Makes budgeting a nightmare.
Wondering how other solo workers keep tabs on payment histories. Is there a system that works well for you?
I’ve been there. My system evolved over time as my business grew.
Started with a basic Excel sheet. Listed clients, invoice amounts, due dates, and payment dates. Color-coded rows for quick status checks - green for paid, yellow for pending, red for overdue.
As things got busier, I moved to FreshBooks. It’s not free, but saves me hours each month. Tracks payments, sends auto-reminders, and gives me reports I use for planning.
For budgeting, I look at the last 6 months of data. I assume my regular clients will pay as they usually do. For new ones, I plan conservatively - expecting payment a week or two late.
Big tip: always keep a cash buffer. Some months will be lean, others flush. A buffer helps smooth things out.
Remember, any system only works if you use it consistently. Update your records weekly, no matter how busy you get. It’ll save you headaches down the road.
Spreadsheets work fine, but I’ve found QuickBooks saves me time. It tracks payments, sends reminders, and generates reports. Helps me spot trends and plan better.
For budgeting, I look at the last 3 months of income. I assume late payers will stay late and plan accordingly. Always keep a buffer for surprises.
Main thing is to invoice promptly and follow up on late payments. Don’t let clients slide or they’ll keep doing it.