Managing Cash Flow as a Freelancer with Hopscotch
Last week you shared questions about the things you struggle with when it comes to getting paid and managing cash flow as a freelancer. We separated your questions into categories, and worked with Hopscotch to provide a few key insights for how to build a better payments process and grow your freelancing revenue in 2023:
1.) “Cash takes too long to arrive”
Freelancers tend to experience less consistent cash flow than traditional, full-time employees. When you don’t have the assurance of a reliable paycheck every 2 weeks, you can either sink or swim based on the efficiency of your invoicing process. Control your cash flow with these tips:
01. Set clear payment terms (Get half the money upfront to give yourself some breathing room)
02. Share your late policy (If a client pays late, make sure you’ll be compensated)
03. Use Hopscotch Flow to get paid on-demand (before a client pays you)
2.) “Invoicing! Hate to do it, but like getting paid”
Managing client comms, tracking payments, invoicing and bill pay…the admin side of freelancing can feel like an entire job unto itself. The answer to your problems? Automations. Find platforms that can help manage the business side of things.
Hopscotch makes it super simple to send invoices and keep track of everything in one place. The templates are easy to use, professional-looking, and the experience for your clients is also seamless—they don’t even have to create an account to send payments.
3.) “Setting a budget”
A budget is a financial planning document that can help you meet business goals. But what does that mean in practical terms? A budget contains a snapshot of finances today and positions your business to tackle long-term financial growth in an effective way.
The first step in building an effective budget is to understand what’s coming in and going out of your business month over month. Hopscotch gives you a clear, all-in-one look at your receivables and payables. You can send invoices and pay bills from a single, streamlined ledger, plus use accounting integrations to eliminate double data entry.
4.) “Clients who ghost” // “Making sure my invoices get paid”
Payments can take a long time to process. And if a client gets busy or distracted on top of that, the waiting game can get really unbearable. Uncertainty about the status of unpaid invoices creates a huge amount of anxiety for freelancers.
To mitigate that, Hopscotch offers read receipts so you can always know when a client receives your payment notification and know how to follow up on outstanding invoices. You can also consider using Hopscotch Flow if you need to get paid before a client pays you. When you spend less time stressing about invoices and chasing down payments, you can focus on landing new clients, completing work, and growing your business.
5.) “Pricing per project vs hourly rate”
Hourly rates are simple to set up and track, but hourly rates make it easy to undersell yourself and you actually make less money as you complete work faster. That’s why it might make more sense to evaluate projects holistically. Project-based pricing lets you set a flat fee based on the list of finalized deliverables. You have control over the total amount you make per project, regardless of how long it takes you to complete the work.
If the scope of work is very clearly defined, it might be safe to estimate how many hours it will take you to complete and then use that number as a guideline for a flat project fee. If the scope of work is loose, unclear, or seems like it might be subject to change over time, an hourly rate might be the best way to get paid fairly.
Ready to level up your invoicing process? Create a free Hopscotch account today. #PAIDPARTNER
