Freelance cashflow management

Freelance cashflow management is the undisputed pain in the ass of any freelancer, here fully addressed to make every freelancer's life spent on market and deliver own competencies rather than worry about whether there's room for being paid out at the end of the month.

Freelance cashflow management pains

To deliver untapped value into the freelance cashflow management space, taking a sharp picture of the actual pains is the unavoidable point to start from.

These are the pains I recognized and filled the gap with.

You do not know anything about finance and accounting. No problem, it's not your fault. These topics should be covered from primary school, even though there's no developed country in the world where this happens. With no basic knowledge about finance and accounting, you won't be able to start managing your freelance finances, neither your personal finances (but this is another topic).

You do not have idea how to make a comprehensive tool for this purpose. And you need it, since there's no software around covering the needs arising from strong accounting and planning approaches, neither for you nor for a 150 Million-dollar enterprise.

If you experience these pains, we are both on the same page and you may benefit from the journey I designed.

Freelance cashflow management pains, covered

Your pains, are here covered as straighforward as you have always imagined but never found around.

A proven freelancer financial stack made of few, comprehensive financial layers to track and plan your cashflows consistently.

Product layer
Freelancer financial stack product layer

The product layer is used to manage cashflows related to shelf products (digital or physical) you may sell online or offline.

Whether you sell mugs on Amazon, online courses on Udemy or even stationery at your town's market, this is the layer where you can track and plan cashflows.

The product layer is organized in four blocks, one for cashins and three for the three types of cashout a business generally has: operating, general and marketing cashout.

Projects layer
Freelancer financial stack project layer

The project layer is used to manage cashflows related to clients' projects.

The most traditional freelance business, the one aimed at delivering ad hoc projects for business clients finds his home under this layer.

The project layer is organized as the product layer in four four blocks, one for cashins and three for the three types of cashout a business generally has: operating, general and marketing cashout.

Admin, General and Finance (AGF) layer
Freelancer financial stack AGF layer

The Admin, General and Finance (AGF) layer is used to track and plan the cashouts to have the business up and running regardless there are projects to deliver or product to sell.

Typically, every business has admin expenses like the accountant, general expenses like office rental and financial expenses like the ones to own a bank account.

This layer is mde on purpose to have these expenses accounted and planned.

Investment layer
Freelancer financial stack investment layer

Being a freelancer is the hardest job ever and requires the think ahead sometimes, building the future of our offering.

The investment layer is here for this reason: track and plan the figure we invest in our own professional future.

Tax layer
Freelancer financial stack tax layer

At the end of the day, we can not run that far away from paying our taxes.

The tax layer should be used for it and is split into two section: tax payouts and deferred tax savings.

While we may have to pay taxes this month, we also should take care of putting aside some money we need to pay taxes in the future. This is the reason why here has been set up a moneboy you can virtually move money in and out not to run short when in need to pay taxes.

So what stack view
Freelancer financial stack treasury overview

The financial stack, wrap up, lead to have a full view of the freelance business treasury, used to know if there's any month we're running out of cash and if the business can pay out our work as we expect. After all, what we are interested in is to know whether we can take some money out of the business to our personal bank account.

It's now time to move on

Join this one-hour video journey, split in chapters so you can easily stay on top of it.

It provides you with basic applied finance knowledge, a two-steps method and a tool based on the latest versione of Microsoft Excel you can customize on your needs (sorry for those of you using other spreadsheets, it may work the same, but you should verify yourself).

Ah, and it's totally, forever free. Free. No money to be paid. No credit card. Santa Claus came to town.

Freelance cashflow management is finally fixed.

Before starting, sorry for my English, it's the best I can do so far. Sorry for the fonts inthe Excel file (Space Mono and Montserrat), you can download and install to have the same front-end.

But, most of all, sorry for the audio. It would have cost me some thousands euro to make these videos as professional as I would. I'm looking for a Company sponsor to do it, but in the meantime I decided to deliver to you this rough, but still useful, version.

Journey introduction

Journey outline and how I am, useful to get a first overview about what to expect.

Finance basics and financial modeling principles

In these ten minutes you get everything you need about applied finance and financial modeling (the art of crafting spreadsheets).

Well, you are now ready to download the spreadsheets. You have two versions, one blank and another pre-filled with example data.

Product and Projects stack layers

Here we go through the two main layers of the freelance financial stack: the product layer and the project layers. The two layers producing cashins.

Accounting cashflows

Every hell of a month, you should sit down in front of this spreadsheet to account what happened in the past month, both cashins and cashouts.

Here we go through how to account occured cashflows.

AGF, transfer, investment and tax stack layers

It's now time to get back to the freelance financial stack in order to complete the layers not yet covered: AGF, money trasnfers, investments and taxes.

Checking everything is all right

The most important thing when we do our accounting is to be sure that we did it correctly, meaning that the financial balance on the spreadsheet is the same we have on the real-world bank account.

So, let's see how we can do it on the spreadsheet.

Speculative cashflows

So far, we have planned our business prudentially. But what happens if we do some marketing activities not planned at the moment, or if we have an unforecastable cashin for a new client?

Well, you can now download a sample spreadsheet with sample bank account data to be used in the excercise.

Get our hands dirty

Let's make the whole process with an hands-on example, a good way to prove if we understood the main concepts before getting started with the process applied to the real life.

And, the most important thing not stated in the video, the progressive cash in the treasury sheet should always be positive. If it negative, it means that money is missing at that month(s) to pay out the expenses.