How to Handle Freelance Billing

Research shows that only half of freelancers’ invoices are paid on time. Not only that, but over one in three freelancers wait over a year to get paid.

Billing and receiving payments as a freelancer is tough work. Dealing with invoicing and late payments may even cut into your paid work, leaving you more stressed and with less cashflow.

But with a few tips, billing doesn’t have to be so hard. Read this quick freelancing guide on how to handle freelance billing the right way.

Review Your Contract

Every freelance gig should come with a contract. If it doesn’t, draft up your own.

Contracts can be your saving grace when it comes to getting paid. Having a legal document that outlines your rights and expectations can protect you in case you ever need to take a client who doesn’t pay to court (though hopefully you’ll never have to).

Contracts should list information such as:

how long clients have to make payments
acceptable types of payment
the cost of the services provided
fees for late payments
kill fees and other fees related to canceled work

Invoice Like a Pro

As a freelancer, you deserve to be paid as a professional. But that means you must also provide professional invoices.

One of the most important freelancing tips is to put a lot of thought into your invoices. They should include key information such as your name (or company’s name) and address, as well as your client’s information, too.

You should also have clear line items for each service you provided. Be specific about the project, type of work, and quantity (such as number of words, hours, or pieces of work) completed. The more transparent your invoice is, the more trustworthy you’ll seem as a freelancer.

Offer Multiple Payment Methods

Freelancers often have the flexibility of working with a variety of clients, sometimes from all around the world. That means not everyone will favor the same type of payment.

To help you get paid without a fuss, offer several payment methods, such as credit card, wire transfer, electronic transfer, and cash app payments. If some methods come with a fee, you may want to charge your client an additional fee to cover the cost.

Use Apps or Hired Help

If handling freelance billing is taking up too much time and energy, don’t hesitate to ask for help.

You can find freelancers, just like you, who specialize in billing and organizing payments. Click here to learn more.

There are also bookkeeping and payment apps that help you stay on top of billing on your own.

Follow Up With Clients

Sometimes, clients don’t mean to pay late. They may be busy, they might’ve forgotten the due date, or they could have missed your original invoice.

Work to prevent late payments by following up with clients. Send reminder emails as the due date approaches, and be sure to contact right when a payment is late.