It’s arguably the most important, and often the most enjoyable, part of being a freelancer – getting paid. But as too many freelancers know, sometimes getting your money is more difficult than it should be. And especially if you’re a creative person, sometimes doing your accounts can slip by the wayside.
If you’re using CashManager, that makes generating your own invoices easy. It has plenty of features to help you, including calculating penalty interest and sending automatic follow-up notices. And it’s flexible and customisable to your needs.
Keep close track of your time
Noting down the time on a bit of paper or even in a spreadsheet doesn’t really cut it – it’s too easy to forget to make proper notes or to lose your information. Fortunately, technology has stepped up and there are a number of apps for phone or computer which allow you to keep track of your time down to the minute, and record what you did during the period. You don’t want to get to the end of a project and be guessing at your time – that’s a recipe for overcharging or, more likely, undercharging.
Stay professional
If you work with someone for a long period of time, it’s natural that you could build up a relationship which is closer to friendship than business. But when it comes time to invoice, that’s when you put your business hat on. Invoicing isn’t personal – you’re not asking a friend for money, you’re detailing what you’re owed for a product or service you’ve provided. Even if you know that the client’s own business might not be going as well as they’d like it to be, that doesn’t mean you should hold off on asking to be paid what you’re owed.
Of course, if you have a good relationship with a client you’ll probably be more willing to consider deferred payment or being paid in instalments. Be reasonable – but don’t devalue yourself or your work, just because the client is a mate.
Work with accounting departments
If you’re working for a bigger company, the person who discusses work with you is probably not the same person who sorts out how you’re getting paid. It’s a good idea to forge a relationship with accounting departments, because they can make the whole process of getting paid easier. So if they want to receive invoices by a certain date, make sure you get yours in on time, and address it to the right person.
Be diligent about chasing non-payers
You can incentivise quick payment by including prompt payment discounts, or charging late fees for overdue accounts. Keep your payment timeframes short – if you want to get your money within 30 days, you usually have to require payment within 14. (The exception is with the aforementioned bigger companies – there’s not much you can do about “following month” payment schedules from them.)
But if a client is ignoring your follow-up invoices and polite emails, getting them on the phone can help to induce payment – particularly if you’re persistently calling them. Always document these phone calls, especially any promises the client makes.
Don’t be afraid to advocate for yourself to get paid
If you’re getting nowhere with your phone calls, getting a lawyer to sent the client a letter will often scare them into paying better than a threatening letter from you. And if you’ve got a dodgy feeling about a client, withholding the final product until you’ve been paid is a suitable way to ensure they don’t disappear with the goods. If it’s a lot of money, then an escrow service can come in handy.
And if worst comes to worst, the Disputes Tribunal is always available – this is where having your documentation all sorted becomes vital.