Consultant Monthly Cash Flow Case Example
This case follows a solo consultant through one realistic month of cash flow, from invoices sent to take-home pay.
The problem
Solo consultants often confuse invoices with income. The cash that lands in the bank is what actually pays bills.
A small business example
Invoices sent this month: $9,000. Cash actually received (older invoices): $7,000.
Outflows: software $300, accountant $200, travel $400, tax set-aside $1,750.
Net cash available for owner: $7,000 − $2,650 = $4,350.
What the numbers mean
$9,000 invoiced does not equal $9,000 available. The consultant actually has $4,350 to live on this month.
Practical interpretation
Plan personal finances around received cash minus tax set-aside, not around invoiced amounts.
Action points
- Move tax money to a separate account immediately on receipt.
- Track cash received separately from cash invoiced.
- Smooth income with a personal buffer of at least one month.
- Avoid making personal commitments based on best-case invoicing.
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This article is for educational and planning purposes only. It is not accounting, tax, legal, investment, or financial advice.