You're a freelancer who recently finished your first real project, which is certainly exciting. You can't wait to get paid and start the next one.
Unfortunately, getting paid as a freelancer isn't as easy as receiving a monthly salary. You first have to create an invoice with all the relevant information, send it to the client, and wait for payment to come through.
So what should be on the invoice, what should it look like, when do you need to send it, and how long should you give the client to pay?
Below, we'll talk about everything you need to know as a freelancer to maximize your chances of getting paid on time for the work you completed.
Once you complete work for your client, you need to let them know it's done and how much they owe you.
An invoice is useful for both parties: the freelancer and the client. The freelancer has a record of what they completed and billed for, and the client knows exactly what they're being charged for, so there's no confusion later on. It leaves a paper trail for both sides.
Invoices are also very important for accounting, as they help keep your financial records organized. You can also see how much income you're getting for the work you do by looking through your invoices.
To increase your chances of getting paid on time and avoid back-and-forth with your client, make sure your invoice includes the following information.
Also, keep in mind that some of these items might not apply to every invoice, as it all depends on the type of service you offer and your initial agreement with the client. So, use this information as general guidance only.
There are three main ways to create an invoice. You can create it from scratch using Google Docs, Word, Google Sheets, or Excel; by using invoice templates available online, or with the help of invoicing software.
Creating it yourself from scratch can be risky and time-consuming, especially if you're just starting out and not sure exactly what should go on the invoice. Using invoice templates is much simpler and gives you a foundation to work with. You can check out our collection of invoice templates and select one that fits you best.
Take a look at the example below to get a general idea of what a freelancer invoice can look like:
Invoicing software takes invoicing to the next level by saving time, reducing manual work and errors, keeping invoices organized, tracking payments, sending payment reminders, and making it easier to get paid.
Try invoicing with Invoicer.ai. You can get started with a 14-day free trial and explore all the features it offers before committing.
Once you've chosen your method of creating an invoice, follow the steps below:
Step 1
Add your information, such as name, business information, and contact details.
Step 2
Next, add your client's information to the invoice. Also, keep in mind that the person who hired you might not be the one paying your invoice. So, make sure you know who actually handles invoices at the client's company and send it to them. Otherwise, you risk delayed payments.
Some companies may require freelancers to include additional info like a PO number.
Step 3
Give your invoice a unique number, and don't use the same invoice number more than once. That way, you can easily track them later if needed.
You can follow a simple system. For example, the first invoice can be 001, then 002, and so on.
Step 4
Add the work you completed for the client, and make sure it's specific enough that they won't have questions later. So, for example, instead of "Services: $1,500", break it down to what is exactly included in these services.
Here are some examples of how different types of freelancers can describe their services on an invoice:
You can then send the invoice as an attachment, such as a PDF, to the person responsible for payment or use invoicing software to send it to them directly.
When you send an invoice to your client depends entirely on the initial agreement you have with them. This can be:
There isn't one universal payment deadline that works for every client and freelancer. It depends on what your agreement with the client says. Some of the common payment deadlines include:
Remember, the longer the payment terms, the longer you may have to wait for payment. It's also recommended to put the actual due date on the invoice so the client won't have to calculate it themselves.
Larger companies may have their own payment schedules, which you should confirm before starting a project. Most importantly, make sure you agree on the exact payment terms before you start providing services to the client.
Unfortunately, this happens more often than freelancers want to admit, and is not a pleasant experience. But don't panic. Here's what to do next:
If, after checking all of this, you still believe you've done everything on your part, follow up with your client for an update on the invoice status and go from there.
By keeping copies of your invoices, you have records to refer to when the time comes to review your finances and prepare your tax return. You can look back at them if a client needs any information or if you need proof of the services you completed.
It's a good idea to save digital copies of your invoices in labeled folders on your computer or in your invoicing software so you can easily find them when needed.
If you're a U.S. freelancer, keeping your invoices organized is also important for tax and recordkeeping purposes, as the IRS lists invoices as supporting business documents that can help show the amount and source of your income.
Below are some of the most common mistakes freelancers who are just starting out make. Take a look to make sure you don't make them as well:
Invoicing seems more intimidating than it actually is. But once you become more familiar and comfortable with the process, it becomes quite simple.
However, as you take on more clients and your workload increases, handling everything yourself will take up a significant chunk of your time. That's where invoice automation in invoicing software becomes especially useful.
Invoicer.ai helps you create and send invoices and estimates, track their status, send late payment reminders automatically, and accept online payments in one location. You can even set up scheduled and recurring invoices for repeat clients.
Start your free trial today and make invoicing for your services easier!
Watch this video to learn how to create an invoice with Invoicer.ai and explore everything else it offers:
You can also create estimates and invoices faster with the AI Assistant. Check out the video below to see how it works:
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