Key Takeaways
- Nothing agreed verbally holds up, get the rate, terms, and timeline in writing before a single hour of work begins.
- Send the invoice the moment the job is done, waiting until end of month is just delaying your own money.
- Longer projects need milestone invoices so cash keeps coming in rather than arriving all at once at the end.
- Automated reminders take the discomfort out of chasing, they follow up so you do not have to.
- One phone call when a client goes quiet is worth more than five unanswered emails.
- The freelancers who get paid consistently are not the most talented, they are the most organised.
Being self-employed – whether you’re a freelancer or running your own small business – can be a balance between pleasure and pain. One of those pains is managing your cash flow so you always have enough money to cover your expenses, and, more importantly, pay yourself. It’s more important than ever now to stay on top of your invoicing to make sure you get paid on time, every time, with every customer. There are a number of tips and tricks to help you create and practice healthy invoicing habits without adding any extra stress to your already busy day.
How to make invoicing problems a thing of the past
To be blunt, invoices are a pain when it comes to freelancing. Since most freelancers decide to take a DIY approach instead of outsourcing to an accountant or working through a platform that does it for you – such as Upwork – it means that you also have to learn how to stay on top of invoicing and make sure that you are getting paid on time. If you’re looking for tips to make the most out of it, here are some of the leaders to consider.
Confirm the details in writing:
Before your start, make sure that you’ve got all of the details clearly confirmed in writing with your customer’s explicit approval. This includes the rate, a quote, payment terms and delivery timeframes. If possible, consider using a customizable template to create a contract that focuses specifically on rate of pay and other invoicing details that they need to formally approve if you feel apprehensive.
Create project-based invoices whenever possible:
While many freelancers invoice monthly or quarterly, it’s always a good idea for your cash flow to invoice as soon as a project is complete. This shows your client that your skills are valuable and it also means that you can use smaller invoices that are easier for your client to pay quickly– a win-win.
Make a schedule and stick to it:
If you do need to go with longer-term projects and invoices, consider designing invoices that are focused on milestones or other markers so that they can still pay as they go and you can collect what you’re owed. Even though they’re milestone invoices, make sure you still include all of the correct contact information, professional branding and other important details that make an invoice formal.
Always follow up:
If you’re using online invoicing software, consider automating payment reminder emails. You can customize when these are sent– weekly, fortnightly, monthly – and they will be automatically be delivered if your client doesn’t pay the invoice by its due date. Always make sure that you follow up, too, if your client gives you nothing but radio silence. A phone call or, if possible, an in-person visit can do a lot to show them that you mean to be paid. The squeaky wheel gets the grease, so the saying goes, and if you want to get paid as painlessly as possible – on time – get squeaky about it!
Automate whatever you can
If you want to take a DIY approach to invoicing, you’ll also need to take an equally DIY approach to stay on top of those invoices to make sure you get paid on time, every single time with all of your customers.
The smart option is to use online invoicing tools to automate your tasks from email reminders to invoice templates. It takes a load off of your plate and maintains your professionalism and timeliness.
FAQs
Q: Why do freelancers keep getting paid late?
No clear due date and no one following up. Clients are busy and unpaid invoices do not fix themselves, if you are not chasing it, nobody is.
Q: What needs to be in writing before a project starts?
Rate, payment date, scope, and deadline at minimum. A quick email confirmation is enough. You just need something to refer back to when a client suddenly cannot remember what was agreed.
Q: Per project or monthly invoicing, which works better?
Per project wins. You get paid faster, the amounts are smaller and easier to approve, and you stop sitting on money you finished earning weeks ago.
Q: What is a milestone invoice?
Instead of one big bill at the end, you invoice at set points throughout the project. The client pays as work gets done, which is better for your cash flow and a much easier sell than a large lump sum invoice.
Q: What actually gets an overdue invoice paid?
A direct phone call. Emails are easy to ignore but a call is not. Send an automated reminder first, then pick up the phone if nothing happens.
Q: Is it worth setting up automated invoicing?
Yes. Templates and scheduled reminders take maybe an hour to set up and then run on their own. That is better than manually chasing every client every time something is overdue.
Q: Does a well designed invoice actually matter?
It does. Clear amounts, a visible due date, and simple payment instructions get invoices processed faster. Anything confusing or cluttered gives clients a reason to put it off.
Q: What one thing separates freelancers who get paid from those who do not?
They follow up every single time. No exceptions, no letting things slide. That consistency matters more than any software or template you could ever use.
