Cash flow (or lack of it) is one of those issues that can kill an otherwise healthy business. When you are slow, it is painful to also experience cash flow troubles but when you are busy, it is just plain weird. Your receivables are on the rise and yet your checkbook is quickly being depleted and your cash is dwindling. Why is that? You are working hard and billing for the work you are doing but the checks are not rolling in (which is where I find myself this week).
When you get used to your steady clients paying in 30 days and all of a sudden, they start taking 45 days to pay, that is when the cash flow problems begin. You have to be willing to ask for money that is owed to you and having bookkeeping software to help you keep track of that is essential. I have to be able to know when a payment is due so that I can be sure to follow up with the client to remind them that I have not been paid. Personally, I use QuickBooks for the Mac which does everything that I need it to and can easily be exported for my accountant to do my year end filings. There are other options like Quicken for Business, Peachtree Accounting and yes, even paper ledgers if need be.
Photographers have several options for studio management software like PhotoBiz, PhotoByte and HindSight but none of them will do heavy accounting like Quickbooks or the others listed above. Keep a close eye on your cash flow so that you can even out your stream of income. It will make your life much easier!
