This third and final installment in our “Living on Freelance Income” series discusses tips on how to keep cash flowing for consultants and independent contractors.
Stay on top of invoices
As an independent contractor or consultant, erratic cash flow may be unavoidable. Consultants, for instance, may get half the balance due for laborious project up front, and the rest due at the end of the six month project. If you are a consultant in this case, you may need to sustain yourself until the second pay check comes through or you land another gig during the life of the first project.
Sometimes the lag time between checks is due to a lost invoice or a misunderstanding about payment terms. Make sure you have a solid process for tracking invoices and payments and that you collect on any late payments. Make sure you and your client or customers agree to clear payment terms.