Day: November 14, 2019

Freelance Invoicing: Get Paid!Freelance Invoicing: Get Paid!



When you work for someone else, your paycheck is always expected on a certain day, and by law it must arrive. The security that comes with working a full-time job no longer exists as soon as you begin freelancing; it is now up to you to collect money for services rendered.

 

If you are uncomfortable with asking for money, or with billing clients after a job is finished, then you’ll either have to find another line of employment or learn how to do it, because a business can’t survive if you work for free. The trick is to come up with a set method of invoicing, and to make that method clear before you even begin working on a job.

Your Contract

If you provide freelancing services, you should have a contract – or agreement – that must be signed before work commences. Have an attorney look over the contract before you submit it to clients, and never start work until you have a signed copy in your hands.

The contract should state the method of payment, when it is expected, and the consequences for nonpayment. As long as those three factors are made clear, you are covered.

Deposits

It is certainly advisable that you receive a deposit before beginning a project. The most common amount is 10%, though some freelancers require as much as 50% up front. Whatever number you choose, the deposit requirement should be strictly enforced. Never begin a project without a signed contract and a deposit up front.

Example in your contract: “Before work on the project can start, a 10% deposit is required from the client. This deposit will be subtrated from the final payment amount owed.”

Time To Pay

Some freelancers perform large projects that cost thousands of dollars. If this is the case, your clients may want to set up a payment schedule. For example, if you charge $5,000 for a 30-page website, the client may want to pay you in $1,000 increments for five months. If this is an acceptable agreement, get it in writing and attach it to your contract. You should also obtain the name, phone number, address and fax number of each client so that you can reach them at any time.

Example in your contract: “If payment cannot be made in full, we will arrange for installments to be paid on a monthly basis. This payment structure is non-negotiable, and must be signed by both parties prior to commencement of work.”

Date Due

Your contract should state exactly when payment is due. For example, you can state that payment is due three days upon completion of the project. That way, you are assured to be paid promptly. If you are in any way unclear about this, you could be invoicing customers for three years before you see a dime – it isn’t worth it.

Example in your contract: “Payment is due three days after the final product has been delivered.”

Consequences

Your contract should also clearly state the …