The verdict in three sentences
The leading cause of micro-business failure isn't a lack of clients but a lack of cash at the wrong moment. Three reflexes are enough: a 40-50% deposit, a balance on delivery and rigorous tracking of mobile money collections. Separating personal from business accounts and setting aside tax turn a fragile activity into a manageable one.
Collection discipline
A freelancer or artisan who delivers before getting paid is financing their client for free. The payment structure protects cash from the moment of signing.
| Stage | Share of amount | Trigger |
|---|---|---|
| Deposit | 40-50% | Quote signed |
| Milestone | 20-30% | Mockup / V1 delivered |
| Balance | 20-40% | Final delivery |
| Recurring (maintenance) | Monthly | Mobile money subscription |
On a 1,000,000 FCFA project, requiring a 450,000 FCFA deposit already covers start-up costs. The rest is collected across milestones, never all at the end.
Separate, set aside, track
Cashflow management rests on three concrete pillars, workable even without an accountant.
| Pillar | Action | 2026 benchmark |
|---|---|---|
| Separate | Dedicated business mobile money account | 100% of business flows on it |
| Set aside tax | Reserve from each collection | 10-15% of turnover |
| Set aside VAT | If on real regime | 18% collected reserved |
| Track | Cash-in/cash-out sheet | Weekly update |
| Safety buffer | Precautionary savings | 1-2 months of costs |
A simple sheet (dates, cash in, cash out, balance) is enough to anticipate dips. The classic mistake is treating the account balance as spendable income when it holds upcoming VAT and tax.
Mini case study
Aminata, a freelance designer, collects 1,200,000 FCFA in one month. Without discipline she spends it all. With the method: she reserves 15% for tax (180,000 FCFA), keeps 1 month of costs as a buffer (300,000 FCFA) and pays herself the rest (720,000 FCFA). The next month a client pays late: thanks to the buffer she rides out the dip with no overdraft or stress. In 6 months she has built a 1,800,000 FCFA reserve.
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FAQ
What deposit should I ask for protection?
A 40 to 50% deposit at signing is the norm. It covers start-up costs and commits the client, sharply reducing the risk of non-payment.
How much to set aside for tax?
As an order of magnitude, reserving 10 to 15% of turnover avoids nasty surprises. On the real regime, also set aside the 18% VAT collected.
Do I really need a separate business account?
Yes. Mixing personal and business makes it impossible to track true profitability and complicates any audit. A dedicated mobile money account is enough to start.
What safety reserve should I target?
A buffer of 1 to 2 months of costs absorbs a late client payment without resorting to overdraft or emergency credit.
Does mobile money help track cashflow?
Yes, every Wave or M-Pesa transaction is timestamped and traceable. That eases reconciliation and building a simple dashboard.
Let's talk about your project. We build mobile money collection and a cashflow dashboard into your tools. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
