Why does finance have such a bad name?
Truth be told, a lot of creative freelancers don’t like to deal with the financial side of their businesses. This aversion to accounting can lead to bills stacking up, checking accounts going unbalanced, invoices not being sent, and clients not paying. (How could they possibly pay you if they don’t know what they owe?) And, worst of all, when someone asks how your business is doing, you have no idea.
However, creative freelancers can learn such terms as “P&L,” which is financial-speak for “profit and loss statement,” and understand what their P&Ls are saying about their own businesses. Likewise, “cash flow,” which is nothing more than the flow of money through a business. And you don’t have to be an economydestroying
financier to use these terms for the betterment of your freelancing business.
So, let’s get started!