Freelance business finances can get messy fast if you don’t stop to check in. Mid-year is the perfect time to do just that.
This simple review is built for creatives who think in big ideas, not spreadsheets. It’ll help you get clarity, make smart changes, and feel more confident about the second half of the year.
You don’t need to do it all at once. Just start here.
1. Review Your Net Income
This is what you keep after all your expenses.
• Open your accounting software and pull your Profit & Loss for January through June. FreshBooks makes this really easy because you can see the report by month, with a period total in the end column.
• Focus on your net income—not just revenue
• Compare it to last year’s numbers or your goals
• Look for trends across months—did income drop in slower periods or grow with certain clients?
• If you export your report as a spreadsheet, you can add notes on what influenced those patterns: new clients, increased rates, reduced workload, or changes in services.
• This insight helps you make smarter pricing and project decisions going forward.
Pro Tip: If your income is up but cash feels tight, your expenses might need a trim. Check out my article on Project Profitability Hacks for Design Studios.
2. Get Clear on Cash Flow
Cash flow is the lifeline of your freelance business. Many small business owners think cash flow means whatever is in the bank—but it’s more than that. Your current balance is just a snapshot. Cash flow tells the story of how money moves in and out over time. It shows you patterns, risks, and opportunities.
• Look at how much cash came in and went out each month. Again, FreshBooks has your back with its built-in Cash Flow report.
• Identify any months where you dipped into savings or credit.
• Spot your highest-cost categories and ask if they’re worth it, or can they be modified.
• If your income is inconsistent, consider adding retainers or recurring services to stabilize it. Predictable cash flow helps you make long-term creative plans without financial panic.
• Build a 2–3-month emergency fund in your business account to buffer slower months.
Pro Tip: Set up weekly cash checks to stay ahead. I started doing a ‘CEO” hour once a week, and now it’s morphed into a full CEO day. It helps me stay up on my own business and personal bookkeeping, marketing and so many other tasks on my To-Do list. If staying consistent feels tough on your own, you’re not alone. Find ways to create accountability—set a co-working date with a friend, schedule it in your calendar like a client meeting, or ask your bookkeeper to check in with you monthly or weekly.
3. Reevaluate Your Pricing
Are you charging enough for your time and talent?
Your work is unique. Whether you’re designing a visual brand, capturing powerful images, or building a user experience from scratch—you’re offering creative solutions that no AI or template can replicate. That value deserves to be priced accordingly.
• Divide income by total hours worked to find your effective hourly rate. (You ARE tracking your time, right????)
• If you’re booked solid and still broke, raise your rates.
• Review which projects were most profitable and focus on that type of client or project.
• Consider offering tiered pricing, project minimums, or packages.
• Track scope creep and build buffers into your pricing.
• Evaluate not just revenue per client, but your energy and satisfaction. Profit and peace matter equally.
Pro Tip: High-paying, low-drama clients are worth more than a packed schedule. I’ve learned this the hard way, my friend! The peace of mind and good client relationships are what make your business sustainable, joyful, and less stressful. They give you room to do your best creative work—and actually enjoy the life you’re building.
4. Clean Up Your Invoices
Are clients paying you on time?
• Review open invoices—what’s still unpaid? Most accounting software like FreshBooks, Xero, and QBO have customizable dashboards where you can see this vital information right up front.
• Add late fees and set up auto-reminders in your invoicing app. Make sure your payment terms are clearly stated on every invoice. Most software lets you automatically apply late fees and send reminders, so you’re not chasing payments manually.
• Follow up on anything 30+ days overdue. The longer it goes, the harder it can be to collect—and the more awkward the conversation becomes. Don’t let late payments drag down your momentum. • If clients are consistently late, require deposits or milestone payments in future contracts.
• Automate thank-you messages for payments to reinforce good habits.
Pro Tip: See my related post: 8 Ways to Keep Your Accounts Receivable Up to Date
5. Revisit Your Financial Goals
Are you making progress or just staying busy?
• Look at your January goals—what’s working, what’s not?
• Adjust your focus for the rest of the year.
• Set one financial goal for the next 90 days.
• Break your big goal into 3–5 mini-goals or checkpoints.
• Track progress in your accounting dashboard or a simple spreadsheet.
• Celebrate small wins. You’re building financial confidence one step at a time.
Pro Tip: Revisit your goals like a creative brief—refine the vision, adjust the scope, and reconnect with the ‘why’ behind your work. Financial goals are more motivating when they’re tied to something meaningful—like more time with your family, a dream vacation, or simply less stress.
Pro-Tip #2: I’ll add a personal note here that not all goals are about money. Maybe it’s about developing better marketing, or improving your workflow. Maybe it’s about having more time for personal projects, setting stronger boundaries, or building systems that make your life easier. Whatever matters to you is worth tracking.
6. Trim the Expense Fat
Less clutter = more control.
• Audit all subscriptions and recurring charges. Cancel anything you no longer use.
• Re-categorize expenses to prep for tax time. That means making sure each expense is labeled correctly in your bookkeeping software—like assigning your design software subscription to ‘Office Expense>Online Services’ or classifying shipping costs to ‘Postage and Delivery.’ This helps your accountant (and you) at tax time and ensures you’re getting all the deductions you qualify for.
• Negotiate annual contracts for better pricing if you’re committed to certain platforms.
• Group similar expenses to see where your money habits need a reset.
Pro Tip: Use expense categories that match IRS guidelines to save time later. See IRS guidance.
7. Recheck Your Tax Plan
Freelance taxes can sneak up fast.
• Use your profit so far to estimate what you owe
• Catch up on quarterly taxes if needed
• Set up monthly transfers to a tax savings account
• Talk to your tax preparer about deductions you might be missing—especially if your business grew.
• Review estimated payments and make adjustments if your income changed significantly.
• Make sure you’ve set aside enough to avoid year-end surprises.
Pro Tip: Even small weekly transfers add up and reduce stress. I transfer 30% of every client payment I receive into my BlueVine savings account. It’s linked to my checking account and they earn interest on the total funds.
8. Simplify Your Tools
Are your tools working for you—or slowing you down?
• If you’re still doing manual tracking (or none at all) its time move to the cloud!
• Try tools like FreshBooks, Xero, or QBO. These are the most common in the US for small businesses, but for freelancers and project-based businesses, FreshBooks is by far the most user-friendly. I’m in the process of switching my own business books from QBO to FreshBooks because they make collecting and tracking time on retainers a breeze.
• Choose software you actually like using. If you’re not sure which features matter most for the way you work, this is a great time to bring in a bookkeeper. We can help you choose the right app for your business type and set it up so you’re starting with a clean, efficient system tailored to your needs.
• Look for features that save you time—like receipt capture, recurring invoices, or mileage tracking.
Pro Tip: Mobile-friendly tools are great for creatives on the go. Bottom line: the less friction, the more likely you’ll stay on top of your numbers.
9. Block Out Review Time
This isn’t a once-and-done thing, folks.
Remember what I said at the beginning—you don’t need to do it all at once. Here’s how to work through it:
• Add a 30-minute review to your calendar every month
• Pick one focus each time (cash flow, pricing, etc.)
• Use the same checklist each time for consistency.
• Make it a ritual—pair it with coffee or a favorite musical playlist.
• Keep it light, consistent, and judgment-free.
• Remember, you’re reviewing to learn, not to beat yourself up.
Pro Tip: Need support? I know how to do this stuff! Book a 20-minute Let’s Get Acquainted Call to explore options.
Final Thought
You don’t have to be perfect. You don’t have to overhaul everything to make meaningful progress.
But the more aware you are, the more intentional your decisions become—and the better your business will feel.
A quick check-in of your freelance business finances gives you clarity, calm, and confidence. It’s about building momentum, one small step at a time. control, peace of mind, and a clear path forward.
You’ve still got time to finish the year strong. Let your money support your creativity—not block it.
