How To Invoice As A Freelancer
An integral aspect of working as a freelancer is ensuring you get paid on time for your complete work. Invoicing makes this process a whole lot easier.
You provide an invoice after performing the service that your client requested. So, what’s the meaning of an invoice? This document details the services performed and the costs associated with these deliverables. It’s essential to ensure the accuracy of the information listed in the bill, along with proper referencing.
If you’re new to the world of invoices, it’s merely the quote you send your clients that lets them know the amount owed for your services. Continue reading to learn more about how to invoice as a freelancer and the required information that must be present.
Start with your contact information. You must place either your name or your company’s name in the forefront. The official address should follow this. To make it easier for your clients to reach you if any questions arise, include your email address and phone number. Adding an invoice logo can do wonders for branding and also conveys professionalism.
Make sure to include your client’s name or company name along with the address. To ensure it arrives at the appropriate party, you can also add the individual’s name in charge of reviewing the invoices.
An Invoice Number
An invoice number is a unique reference assigned to each document issued for tracking purposes. Invoicing software for freelancers can help you automatically determine and allocate these numbers based on your own predefined rules. Alternatively, you can attach numbers manually.
Numbering your invoices this way helps you with tracking them and subsequently keeping tabs on your payments. Moreover, familiarity with how to send an invoice as a freelancer digitally can benefit you in numerous ways.
Freelancers are often required to track late payments and clear up questions for quicker reconciliation. Nothing comes to your aid more than an organized record of properly referenced documents in times such as these. An invoice number ensures you’re on the same page as your client and discussing the right bill.
The Issue Date And Due Date
It’s customary to mention the date of issue on your invoice. This date corresponds with the day the payment timeline starts for your client.
Tracking numbers can quickly become mixed up among all the other responsibilities of a freelancer. In such a case, freelancers and clients can sort and categorize using the issuing date. The best invoicing software can simplify this process on your behalf by centralizing all this vital information.
Another piece of information that must make its way on your invoice is the payment due date. Any payment not made on or before this date will be categorized as ‘late’. Due dates are mostly set up with the client’s approval or based on the agreement’s terms.
Description And Total Due
The breakdown and description of the goods or services you provide to your clients is essential information on your invoice. The general practice lists each item separately along with the quantity, associated cost, and other necessary particulars. This should be followed by the total amount due for all the services or goods provided.
The individual costs and overall amount must be stated clearly, transparent, and easily decipherable. Freelance billing is the sole reason behind sending an invoice and accordingly should be the most prominent information on your document.
Extracting payments from clients is always a delicate matter for a freelancer. Once you’ve learned how to invoice a client for freelance work, you’ll notice that payment method flexibility helps smoothen this process considerably. You absolutely must be open to several different means of collecting payments. Here are a few options that you can assemble.
PayPal is one of the most popular electronic fund transfer platforms for freelancers. The software allows users to set up their accounts easily for secure and comparatively faster exchanges. Best of all, there are buyer and seller protections that add extra assurances for all parties involved.
Credit And Debit Cards
It’s become a common custom to make payments via credit and debit cards for smaller sums. You must also be open to facilitating these payment methods given their ease of use and widespread adoption.
Like PayPal, TransferWise is a reliable multi-currency money transfer service. TransferWise is emerging as a popular platform supporting more than 750 currency routes worldwide in the world of online exchanges.
Another cross-border financial services company is Payoneer, which powers easy transfers, digital payments, and working capital. With a Payoneer Prepaid Mastercard, account holders can make payments directly from their account.
In-Person Cash Payment
As a last resort, give your clients the option to make payments in-person. It’s a simple exchange that generally rules out the possibility of a mishap or malfeasance.
If additional costs are involved, or the bill requires some clarification relating to freelance retainers or contractual conditions, put these details in fine print at the bottom of your invoice. Additional points such as these typically include discounts, incentives for early payments, and penalties for delayed remuneration.
The Bottom Line
Knowing how to invoice a company for freelance work is fundamental for those who choose to be sole proprietors since they primarily oversee the gritty accounting work themselves. The key is to present the necessary information transparently and avoid overcomplicating the documents with unnecessary details that blur the point.