Learn the basics
Cash flow
Cash flow is the money actually moving in and out of your account. You can be profitable on paper but unable to pay rent if clients pay late. Watch your bank balance and upcoming bills weekly, and chase unpaid invoices early.
Profit vs revenue
Revenue is everything you invoice. Profit is what's left after expenses, VAT set aside, and taxes. A €10,000 month might leave €5,000–6,000 of real profit. Always think in after-tax money.
VAT in one minute
When you invoice €1,000 + 21% VAT, the €210 belongs to the tax authority. Set it aside immediately. Every quarter you pay collected VAT minus the VAT you paid on business purchases.
Emergency fund
Aim for 3–6 months of fixed business costs in reserve. It turns a lost client from a crisis into an inconvenience, and lets you say no to bad deals.
Pricing
Your price must cover your time, expenses, VAT, income tax, social contributions, and profit. Many freelancers under-price by 30–50% because they forget taxes and unbillable hours.
Good debt vs bad debt
Debt that buys income-producing assets can be smart. Debt that covers ongoing losses is a warning sign. Never borrow to pay VAT you already collected.