Tracking unpaid invoices for a while now has opened my eyes. It’s wild how specific clients and project types tend to be the ones causing cash flow issues.
There are patterns that emerge over time, like how certain seasons impact payments. It’s led me to rethink my entire financial strategy.
Cash flow tracking changed everything for me. Numbers don’t lie.
After 18 months, I spotted these patterns:
I price based on payment history now. Slow payers get higher quotes upfront. Fast payers get discounts.
I never take more than two slow-paying clients anymore. Having multiple big invoices sitting unpaid was destroying my cash flow.
Seasonality’s real too. November through February are lean months, so I plan for it.
Tracking late payments changed my approach. Construction does slow down in winter, so I now focus on residential jobs. Some industries just pay slower. Medical offices take time but are reliable. Restaurants are hit or miss. I’ve started charging slow payers more to offset the hassle.
I just ask for half upfront now on bigger jobs.
Three strikes and you’re out - that’s my rule now. Client’s late three times? They go on my problem list. Problem clients get shorter payment terms and bigger deposits. Some people don’t respect deadlines until it hits their wallet. I stopped chasing the same bad payers and started finding better ones instead.
Yeah, those patterns hit hard once you see them. I started noticing retail clients always paid slower in January and February. Now I just plan for it and save extra cash in December.
The project type thing is so true. My rush jobs always paid fast, but the bigger contracts dragged on forever. Changed how I price things and when I expect money to come in.
Started keeping a simple spreadsheet of who pays when. Turns out some clients are consistently 45 days late but they always pay. Others are random. Knowing the difference helps me sleep better at night.