Cash Flow Management for Filipino Freelancers

When you work for a company, they look after your cash flow. When you are in a relationship, both partners look after the cash flow. Being a freelancer, you must manage your own cash flow.

You must make sure you have adequate funds to meet all of your expenditures while also working on finding tasks effectively for the next project and assuring you are paid. Starting off, it might be challenging to balance everything. While managing your cash flow is crucial to the profitability of your freelancing business, it can also be a significant issue for those who work for themselves. The freelancing sector in the Philippines can be competitive and demanding of its participants. Without the appropriate contacts and a consistent stream of clients, you might quickly run out of revenue.

Remember that you need to pay your taxes, your own healthcare insurances and your own benefits. When you are working, you are earning, but when you are off, you are not paid sickness or holiday money. 

The following are some techniques to have good cash flow management to help you avoid burning out during your freelancing career.

1. Agreeing on payment terms – All of your clients must be informed of your payment conditions. These should be made clear in the initial discussion, the contract’s terms and conditions, and the invoicing. If feasible, ensure that you get a deposit up ahead of time.

2. Keep an exact record of all income and outlays – It’s crucial to maintain a precise inventory of your revenue and outlays during the course of the year. A record of your earnings and expenditures is not only necessary for tax purposes, but also gives you valuable insight into your financial situation.

3. Find a Diverse Clientele – For a freelancer,a large client may give a consistent stream of tasks and income. But they don’t happen very often and often require a lot of paperwork. A diverse client list that includes a few smaller, project-based businesses is typically preferable than relying on big-ticket businesses.

Cash flow management can make or break a business, no matter what it sells. If you know how much money is coming in and going out of your business, you’ll have a better idea of how to predict earnings and where to put your money.

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