More than a third of U.S. workers are now Freelancers. Freelancers enjoy enriching careers that require them to manage every facet of their thriving businesses. Yet, the hustle and bustle of freelancing often leads to a few neglected responsibilities… like getting paid. You can’t afford to have all of your hard work go to waste because you haven’t kept accurate track of invoices and billing.
The freelance financial management experts at BillGrid want to share 10 tips to invoice your freelance clients professionally.
1. Carefully Devise Invoice and Billing Policies
The first step to get paid faster involves devising payment policies, from selecting a payment service such as PayPal to deciding on the amount of time you allow clients to make payments.
Here are some other factors to grow your business:
How much should you bill up front for down payment deposit?
Do you want to establish milestones?
Do you charge late payment fees?
Do clients receive the work before or after you complete projects?
2. Don’t Back Down
Some clients like to bully freelancers by threatening to not pay or reduce the amount of payment. You must stand by your agreement and online invoicing system 100%. Clearly communicate your policies to clients and make sure to save documentation in case a legal dispute arises.
3. Online Billing Software and Invoicing System
You need an advanced online billing software and invoicing system that creates professional looking invoices that automatically go out at times that you designate. BillGrid online invoicing software keeps tabs on which clients owe you money and how long the debt has been outstanding.
4. Organize Invoices and Track your Payment
If you bill through PayPal, you notice the invoice system uses numbers that increase sequentially to keep track of your invoices. Successful freelancers work with several clients simultaneously and thus, they require a way to manage the money owed. By using a simple numbering system, you save time and improve financial accounting accuracy.
5. Maintain Meticulous Invoice Records
The best online billing software and invoicing systems do an outstanding job of organizing and storing invoices for future use. Backup every invoice into a compressed file. When it’s time to prepare taxes or refer to a previous invoice to determine how much to get paid online, you have invoice records that present all of the financial data you need.
6. How Much are You Worth?
This represents one of the most difficult questions for freelancers to answer. You need to price your freelancer services to fall within the range of prices charged by competitors. Never low ball the competition just to snag more business. If you charge below what you’re worth, you can expect to attract demanding clients that require you to perform tedious work outside of your area of expertise. You also must decide whether to charge by the hour or attach a fixed price to each project.
7. Responding to Late Payments
You can expect to deal with late payments and how you word your electronic correspondence determines whether you get paid faster or paid at all. Late payment reminders must never include accusatory language or threats. To increase your chances of getting paid, the trick is to remain polite and professional.
You don’t want to damage the good reputation you worked so hard to build with your clients. With that being said, don’t go soft – you did your part, now it’s time for your client to do theirs.
Perhaps most importantly, don’t procrastinate and make sure you choose an Online Invoice software system that send automatic late payment reminders to clients. No freelancer likes to take time away from their work to chase down payments, so let us do that for you.
8. Due Diligence on Due Payments
Include a due date on every invoice and billing statement that you send clients, including on late payment reminders. Easy invoice software prominently display due dates typically at the top of an invoice in bold font and at the end of the invoice next to the amount due. Forgetting to include due dates on invoices ensures late client payments.
9. Contact Information Matters
Save time billing by including your freelancer contact information on each invoice. You need to present your full name, address, cell phone number, and primary electronic mail address used for business. BillGrid invoicing software for small business and freelancers provides a section for completing your contact information.
10. Due Date Reminders
As another communication tool to get paid faster, automatic due date reminders sent by BillGrid invoicing software for small business and freelancers keeps your clients abreast of payment dates. Most clients don’t intentionally try to stiff you. It’s just that they’re very busy and forget about paying you for work completed.
BillGrid helps freelancers mange expenses and reduce the amount of outstanding balances by designing state-of-the-art online billing software and invoicing systems. We can help you 100% of what clients you for the hard work put in on each project.