In creative industries like gaming, animation, and digital media, ideas flow fast but cash doesn’t always keep up. You might be deep in production for months before a milestone payment lands, or waiting on client sign-off while payroll and freelancers need paid.
Managing cashflow well isn’t just about surviving these ups and downs. It’s what gives you the freedom to keep creating confidently and sustainably.
Why Cashflow Feels Tricky in Creative Businesses
Creative studios often have irregular income. One month you land a big project; the next, you’re in pre-production with costs piling up but no new cash coming in yet. Combine that with multiple freelancers, software licenses, and production tools, and it’s easy for even profitable studios to feel short on cash.
The key is understanding the rhythm of your business and planning around it.
1. Map Your Money Coming In and Out
Start by looking ahead, not just behind. A rolling 6-12 month cashflow forecast helps you anticipate when money will arrive and when major costs will hit.
- Plot out client payment dates, grant instalments, tax credits and other payments
- Layer in regular costs like rent, salaries, and software. Factor in freelance costs and their timing on the project.
- Highlighting tricky periods early, so you can plan before they happen.
This turns surprises into strategy giving you time to act instead of react.
2. Set Clear Payment Terms
Creative work often runs on trust, but that doesn’t mean your cash should. Be upfront about payment schedules and milestone invoicing before work begins.
- Ask for an early milestone payment to cover early-stage costs.
- Use milestones that align with your cashflow gaps to smooth income through long projects.
- Don’t hesitate to chase politely but firmly, a friendly reminder beats a funding crisis later.
3. Know Your Breakeven and Build a Buffer
It’s vital to know your monthly breakeven point the amount you need just to cover all your essential outgoings. Once you have that figure, aim to build a cash buffer of at least one to two months’ costs.
That safety net gives you breathing room to take creative risks or weather a late payment without stress.
4. Match Spending to Project Stages
Try to align major spend with secured revenue. For example:
- Delay hiring extra freelancers until key project stages are confirmed.
- Lease or subscribe to tools only when they’re actively needed.
- Keep big investments (like new equipment) tied to forecasted cash inflows.
That way, your creative output stays high but your bank balance stays healthy.
5. Review and Refine Regularly
Cashflow management isn’t a one-time task, it’s an ongoing habit. Regularly update your financials to check your figures, update forecasts, and spot trends. You’ll quickly see what works, what’s draining cash, and where you can be more efficient.
Keep Creativity Flowing
Cashflow isn’t about numbers for numbers’ sake it’s about giving your team the freedom to focus on great work without financial stress in the background.
At Dash Accounting, we work with creative studios to build simple, practical financial systems that fit their world, not the other way around.
For a free cashflow template please head over to the Contact Us page and we would be happy to share one with you.
