This generation is embracing the gig economy like no other generation. Freelancing has become an aspirational career stream. A career stream that is looked at as one that provides flexibility in schedules, freedom to work remotely, and a solution to generate additional income. But as everyone in the world continues to find ways to harness the true potential of freelancing, there is one pivotal factor that must be taken care of – invoicing.
In order to get paid on time and ensure that the payment process is as smooth as possible, it is important to ensure that the invoices are accurate, clear, and professional. A poorly formatted invoice that isn’t clear can result in confusion, leading to delay in payments. This could catapult and lead to numerous other repercussions. While invoicing may look like just another administrative task that can be brushed aside, it tends to cause troubles if not taken care of properly.
FREELANCER PAYMENTS BE LIKE..
To make sure freelancers don’t fall into the trap of making the same mistakes over and over again, we’ve compiled a list of 10 common mistakes that freelancers make and how they can be avoided:
Not including important details
An invoice needs to have the name, address, tax numbers, and other minute details that are important for processing the invoice. Not including these details could be detrimental to one’s services and offerings. These details are also important as they are needed by the state and national laws, and not including them could also invite legal problems. Missing out on these little details could also make the freelancer look less professional, all in spite of giving out the best work. Freelancers that are looking for an invoicing solution can just follow different invoicing templates. Thanks to this invoicing solution, freelancers can include all the important details like the client’s name and address, personal details, payment terms, tax numbers, and the total amount in the right currency.
Not being descriptive
One of the most common mistakes freelancers make is assuming that the client is fully aware of the work they are doing. More than often, clients deal with numerous freelancers at once. To ensure that there is no confusion while invoicing or in the future, clients expect the freelancers to be descriptive in their invoices for the services that are offered. One of the most common invoicing solution(s) that freelancers can follow is by having itemized invoices where every project has descriptive summaries of the tasks that were carried out. This invoicing solution is also helpful for freelancers as they can keep a record of the work they’ve carried out for the client.
Not giving clarity with payment methods
It is imperative for freelancers to clarify the payment terms. Not doing so is one of the most common reasons that cause delays. Freelancers must always ask themselves – is it easy enough for the client to pay for the invoice right away? If the answer is a no, freelancers can be sure of leaving their clients confused, leading to multiple exchanges to get clarity to process the same.
A common invoicing solution that freelancers can adopt is to have a one-click procedure that allows clients to pay through the invoice itself. Numerous fintech startups now help freelancers integrate payment links that ensure the payment is quick, simple, and free of any hassle.
Not mentioning the due date
More than often, freelancers keep the due date open. This only leads to delays in processing the same. Unfortunately, businesses file it for later and never tend to it if no payment deadline is set. Setting a clear date from the beginning can help in processing the payment on time while making the freelancer look professional too. Having a due date not set too far from the invoice-generation date is one of the most common invoicing solutions freelancers can use to ensure there are no payment delays.
Delaying late-payment reminders
Every freelancer in this world has faced payment delays. It is a situation that every freelancer familiarizes themselves with. If a client has delayed the payment, it is wise for freelancers not to wait for weeks to remind them of their dues. Most of the time, these payments are at the bottom of the client’s priority list. To ensure that freelancers do not have to face the wrath of delayed payments, it is of paramount importance to set up a payment reminder system where one can send reminder emails after a designated number of days post the due date. This invoicing solution can help freelancers focus on their work rather than other mundane administrative activities.
Not differentiating invoices
Every freelancer assumes that there’s just one single type of invoice. But the fact of the matter is, there are numerous types, depending on the stage of the service that is being rendered. These include the likes of the pro-forma invoice, a time-billing invoice, a progress invoice, a deposit invoice, the standard invoice among others. Not mentioning the type of invoice can be confusing to a client, leading to potential errors in the payment. A simple invoicing solution here is to mention the type of invoice and have differentiated reference numbers for each type.
Not sending it to the right team
More than often, freelancers tend to ignore the fact that there are numerous teams that work in an organization. Agreeing to work on a project, reviewing the end-result and processing of the payment are all taken care of by different teams. A quick fix invoicing solution here is to find out the team that will be processing the payment. This can help freelancers save themselves from any unprofessional behavior and can help them in getting pertinent updates regarding the payment right from the team that processes it.
Sending out poorly designed invoices
Freelancers must always keep in mind that right from the first email to the invoice, everything must look professional. These facets reflect the freelancer and their brand of work. Sending out a shoddily designed invoice dilutes the entire hard work that was actually put into the work. With an invoice being an extension of the freelancer’s work, they must ensure that it has the right aesthetics in place. This invoicing solution, though exaggerated, develops the right rapport with the client, leaving an inherent impression that would always be beneficial to the freelancer.
Inconsistent with invoicing
Clients usually have a billing payment cycle that they adhere to. While freelancers might not be aware of this, the clients do expect the freelancers to roll out the invoices immediately after the project is completed. Another invoicing solution to this problem is by agreeing to a fixed date to send out the invoice. Unnecessary delays in rolling out the invoice could lead to complications in getting the payment processed in time. Freelancers can also resort to an invoicing solution where they can prepare invoices well ahead or can arrange for recurring invoices to be rolled out automatically on a designated date.
Not using invoices as a marketing tool
Invoices for freelancers can serve as a gateway to market themselves. While invoices are a branding tool for the freelancer’s services, they can also include different marketing materials to push their brand further. Freelancers can also politely and non-intrusively ask clients to recommend their services to other clients while rolling out an invoice. Freelancers can also include a crisp and concise testimonial on the invoice as a way to market themselves. This invoicing solution, albeit subtle, has a positive impact on clients.
Avoid these common invoicing mistakes and be a successful freelancer. If you need an invoicing solution that will take the load off you, Easebuzz can be a great solution! Want to learn more? Well, we are just an email/call away.
Email : firstname.lastname@example.org
Phone Number : (091)8275303542