Freelancing is a hot topic these days, and it's no surprise. Working for yourself has many perks. Including the ability to set your own hours, choose what projects you work on, and make more money in the long run. But even with all of these pros, there are some cons that can make freelancing difficult. Especially, if you don't manage your payments correctly. That's why, in this article, we are going to talk about ways to handle payments as a freelancer. This will ensure that everything goes smoothly!
Once you accept the assignment, it's time to get down to business and create your invoice. But how do you make one? Do your research on payment terms and the invoicing process of your client before creating an invoice. There are many different ways to go about this such as via email or even using a project management tool like Asana. Many will only require an informal note in your communication with them at first. That is until they officially hire you. If they don't accept it after that, it means they probably aren't ready to pay (or maybe not ever). Once that happens, then you can send them a formal invoice. Use whatever method works best for both of you.
Freelancers are often put in limbo when it comes to getting paid for their work. It's important that you know how contracts work. Learn how to go about making an invoice because this will help guarantee that you're always paid on time. When collecting payments as a freelancer, it's also important to know the legalities for invoices and taxes. This can ensure that you're not taken advantage of by clients.
You'll want to begin by finding the right clients for you. If you're looking for freelance writing jobs, it might be a good idea to stick to smaller publications and blogs. These can be better than more established sources like CNN or Forbes (unless of course you already write for them). Especially because these publications typically have stricter payment requirements that can limit your options. For example, some may require money upfront before starting work. Or, they may even require 50% down before beginning any job. This can get difficult if you don't get paid until weeks after the assignment is complete. Thus, the cash flow isn't available. You'll find this is true with many different types of freelancing positions. Keep this in mind when searching for your next client.
When you sit down to talk with a potential client, make sure you fully understand their payment needs and procedures before accepting the job. Get as much information as possible. From what type of invoices they require, how often they will be paying, to whether or not money is required upfront. Don't wait until after you have been working for them for weeks to find out that there was something you didn't quite understand about their payment terms. Especially, if it means that it may complicate your cash flow issues!
The last thing you want as a freelancer is to finally get an assignment and then have it fall through. This will mean they can't pay you. This happens all the time, so you need to know some good strategies for collecting payments as a freelancer. This will give you a higher chance of avoiding these issues. For some clients, it's as easy as sending them an invoice via email. But, some will require more of your attention, such as phone calls or even personal visits. You'll also want to make sure that you never skip out on following up with past-due payments. This can cost you money and ultimately hurt your credibility in the long run. Keep track of every single step and keep records of important communications. Finally, don't be afraid to let go if things aren't working out with a client. Be professional and courteous (and even kind if they're very late on payment) but don't let them take advantage of you. Never put up with unreasonable behavior that will only hurt your business in the end.
It's inevitable, especially when you're working for clients, that there will be late payments. The best thing you can do is get your payment terms down in writing before you start the job. This may take some time to complete, but it's worth it if it means getting paid on time every single month! If they don't respond to your invoice, then follow up with them one week later. After all, these are professionals, and they should have no problem paying on time or responding to your invoices, so try not to get too stressed over this issue.
If they do still refuse to pay after following up with them, you might need to send an email asking for the full amount immediately (plus whatever late fee was promised in the contract). If that doesn't work, then it's time to start looking for a collection agency, or your bank may be able to help. Most people would rather avoid the hassle of dealing with a collection agency, so it might surprise you how quickly they can get their clients to pay up. But if all else fails, and they still refuse to pay, there isn't much left that you can do. That's why it's very important that you always have a backup plan just in case this does happen. On-time payments are crucial when it comes to staying afloat as a freelancer!
When keeping track of invoices, organize them by project name and be sure to keep a record of everything including payment terms and late charges. Many clients will also want an invoice number for their own records, so make sure to include this information on all your invoices.
When it comes time to pay the bills, you want to make sure everything is organized and scheduled accordingly. You don't want to end up paying late fees or be forced into using high-interest credit cards because you forgot to organize your finances! Try keeping a simple spreadsheet with all of the information including what it's for (such as rent), when it's due, who it needs to go out to, and how much payment is each time. Having access to all of this information in one spot can help prevent any problems down the road.
You'll never have a problem with collecting payments as a freelancer if you follow these tips. It takes some effort, but it's worth the time spent to avoid any major cash flow issues down the road! If you're struggling with staying on top of your invoices or need help finding clients that will pay on time every single month, our team is here for you. Let us know how we can help, and we'll put together an action plan today. We hope this article has helped make managing money much easier for all those independent professionals out there looking to succeed in their freelance careers!
