After a lower month of income last month, it’s great to see that August was my highest earning month ever!
My hard work in July finally paid off in August’s income.
If that sounds confusing to you, the reason why is because I’m basically paid in arrears for much of my work. I do get some pre-payment for services, but many of them are paid at the end of each month after work has been performed.
This means that if the income was received after July 31, even though it was for July work, the income was counted in August.
The reason I do my accounting this way is because you never know what can happen. A client may pay you very late or not at all, and you don’t want to have already accounted for that income if you don’t end up receiving it.
This is just another reason why solopreneurs have to hustle and why an emergency fund or buffer of some sort is 100% necessary when you run your own business.
Here’s a deeper look into how I made money, and spent money, with my business last month.