7 Surefire Invoicing Tips for Freelancers

Maggie Flynt

May 12 2018

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Even though getting paid for freelance services is one of the best aspects of the job, invoicing might prove to be a nightmare. But for a freelance business to succeed, it requires the same approach as that of any other business and proper invoice management is crucial in this regard. It will allow for a solid cash flow and reduce the amount of friction and frustration you have to contend with from clients.

Invoice generation does not have to be a nightmare if you have the right tools, appropriate approach and correct charging framework. Use this list of tips as a checklist to ensure you get it right and keep your operations from running into financial disaster.

1. Come up with Clear Policies

The most basic rule of invoicing is to think through your policies and let your clients in on them. No one likes a surprise, especially where finances are concerned. This means that your clients need to understand your pricing structure right from the onset so as to decide whether they will be comfortable with the stipulated terms.

Clarity makes it easier to build a trust-based relationship and this, in turn, leads to more opportunities as well as favorable recommendations from the persons you work with.

2. Devise a Foolproof Billing System

The most important rule of invoicing is to make sure you never undercharge. It is true that in order to give yourself a competitive edge, you might need to make your billing as fair as possible. However, you deserve payment for every expense incurred and service rendered. All of the work that you do including offering a consultation to your clients and carrying out research should reflect on your invoice. The same is true of supplies you purchase for a particular project and trip expenses when you have to work out of town.

Underpricing your services in a bid to be competitive, in many cases, only attracts the wrong type of clients who might even disappear without making any payment.

3. Make Special Provisions for Problem Clients

It is impossible to put a price tag on the level of mental distress some clients cause. But in most cases, you will find one or two problem customers who take up more than their fair share of time from your schedule. This number often grows at the same rate as your expanding clientele base.

While the most likely reaction would be to drop them and save yourself the anguish, it is likely they will only be replaced by similar, if not worse, troublemakers. A more effective solution would be to stipulate a maximum number of free consultations beyond which they have to start paying a specified rate. Let all clients know about this upfront on your initial proposal to avoid upsetting them in future.

4. Automate the Process

Let’s face it. Bookkeeping does not come naturally to everyone. But in this era of automation, technology has made things so much easier allowing you to delegate the paperwork to machines and concentrate on generating income.

For instance, you may opt to use an invoice generator, which offers you access to a free invoice template. Such software is easy to use, only requiring you to hit the “create invoice” tab, check out the sample invoice, customize it and send via email or print it out. In most cases, such an invoice maker will offer a simple, yet thorough, invoicing template that projects a positive image of your brand and captures all of the necessary details.

Another advantage of such software is that it helps to organize your records allowing you to keep these important documents easily accessible.

5. Always Review Client Contracts Before Invoicing

Treating your freelance career like a real business involves signing contracts for every project you undertake. When it comes to making a payment request, you need to confirm that the details on the invoice match to the contract terms. If the contract stipulates a specific payment method, for instance, it would be best to modify your invoice to match.

Additionally, the contract will allow you to realize when the client asks for more work than the agreement laid out. In such cases, you would have a solid base for including extra charges. But remember to notify them of this fact before invoicing.

6. Include Pertinent Details on Your Invoices

Incorporate crucial data such as full contact details, invoice numbers and pertinent business information on your invoice. Especially when dealing with big organizations, invoices have to go through a number of hands before payment is made. The different handlers might require clarification and without having your contact details, getting cleared for payment might take longer than anticipated.

7. Always follow up on Delayed Payments

When a client goes mum after you send an invoice, do not wait an entire month to follow up. It might be in your best interest to call immediately saying that you’ve already sent the invoice. But be sure to sound friendly and polite on follow up calls as financial matters can make people jittery.

This is another situation when an automated invoice maker comes in handy. This type of software prompts you to send a reminder for invoices that are almost due or overdue.

Properly prepared invoices significantly reduce turnover time as they leave no loopholes that would cause unnecessary delays. Even though freelancers, in many cases, opt to use the invoice template in Excel on Office, there are notable advantages to automating the process and using professional invoicing services. This will reduce costly errors leading to on-time and verifiable payments for your freelance business.

Armed with these tips and the right invoicing tools, you can finally say goodbye to all your invoicing woes once and for all.

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