Whether small or large, business runs smoothly when you get paid on time. Even if you are a freelancer, worry not! Creating an invoice for your freelance job is as simple as any business invoice. Make sure that the invoices are complete and properly followed up. Some companies think about paying their freelancer only when they receive the invoice. So do not neglect these and start creating as you finish the project.
But the question arises, where to start from? In this article, we have set a precise guideline that will help to understand how to invoice as a freelance designer.
Check out this article and get all your questions answered!
Steps for creating an invoice
Creating your invoice may seem a daunting task. Here are a few pointers that will help you get your job done effortlessly.
1. Select an appropriate template for your invoice
There are various invoicing software available nowadays that offer you invoice templates. With Billbooks, you can get various options and can design your customized templates as well. These will help you get your invoice ready instantly, and you can send those immediately to your clients.
You can add your logo or custom header to your invoice to highlight your designing ability. Make the invoice in a prominent font and give it a professional look by picking up an appropriate theme color. Keep your invoice simple and easy to understand.
2. Claim a deposit to be on the safe side!
Consider a deposit to be on the safe side. When you are invoicing for new clients do ask for a deposit. This would help you avoid risk as you are not sure as to when you are going to get the pay. It is recommendable to claim around 25-50% of the total project fee as a deposit and be warned if your client refuses to pay. Payments are generally paid within 30 days, but some companies only pay after 60 days. A little flexibility in the payment cycle is needed but make sure you take precautionary measures to deal with such situations. Claiming a deposit amount can help you out in these situations.
3. Verify all the details from the clients
Double-check with all the vital information before you start filling up the invoice. To avoid delays in the invoice, converse with your clients to be very sure about the necessary details. Anything new in your invoice will surely raise confusion that may delay the payment process. Confirm whether your clients want invoices by email, fax, or snail mail. Start your invoices only after you are clear about all the details.
4. Add important details in the invoice
An invoice need not be fancy, rather it needs to be precise and clear. Whether small business or freelancing, an invoice must look professional and should be flawless. Besides learning how to invoice as a freelance designer, check out the details below to understand what all should be included in an invoice.
- Invoice number and date: Invoice number is an identifier that marks your invoice and helps you refer them for future needs. The left side of the invoice should have the invoice number, which will help keep a track of the payment. Adding the date of invoice generation is equally important. This helps you to track the payment, in case you face any delay.
- A professional header: Your freelance invoice must include a professional header in a bold and easy-to-read font. Your business name along with the logo (if you have) should be mentioned in the invoice. These will help your client with a better understanding and reduce the risk of missing out on the invoice.
- Include client’s PO number if applicable: Purchase order number should be added in the invoice, if applicable. This detail will help your client to understand and have clarity about the invoice related to the specific transaction.
- Contact details: Contact details are one of the must-have parts of your freelance invoice. Clearly mention your and your client’s contact information for future reference.
- Description of services or products supplied: Being a freelance designer, add the details about the service you provided or the project that you worked for.
- Payment details: Mentioning payment details for the invoice for freelance designers is a must. These would include the business names to be mentioned in the checks, bank account details, payment mode, sales tax (if applicable), etc.
- Add a note for special mentions: If you have already received a deposit or have been paid partially, then do mention it in the note section. This way you can give your client a clear idea about the transaction.
- Terms and conditions: It is not necessary that being a freelance designer you would not have your business contract. Freelancers can have their agreement and the clients need to sign on it as a term of mutual agreement. This way you can make your clients settle the payment on the specified due date.
- Late fee policy: Include a late fee policy to avoid delay in your payment. Mention in the invoice about the extra-fine amount that the client is liable to pay after the payment due date.
- Total amount due: Mention the total amount including tax at the end of the invoice. Mention the amount inclusive of late fees if the invoice has passed the due date.
5. Follow up
Chasing for the payment sounds ridiculous, but this is what the actual scene is. If you don’t get paid even after the due date, follow up with your clients right away. There is no harm in sending a friendly email or calling them up and asking as to when you can expect payment.
Invoicing tips for freelance designer
The above guide will help to learn how to invoice as a freelance designer. Here are some bonus tips for invoicing for freelance designers that would help in getting paid adequately on time.
- Remember to add payment due date: Mention the payment due date to encourage on-time payment. Maintain a polite tone to avoid sounding aggressive while mentioning the due date. The best way, you create invoice templates using accounting software that eases up your task avoiding complexities.
- Send invoices immediately to your client contact: There is no harm to be prompt in sending invoices. Send it as soon as you’re done with the project. Make sure you send it to the right contact person and don’t let it get misdirected to avoid a delay in payment.
- Number your invoices properly to track a record: It is essential to keep track of money coming in. Moreover running a business involves dealing with multiple clients and tracking multiple invoices. Hence, assign unique numbers to your invoices so that it becomes easy to monitor your finances. Moreover, the invoice number allows you to refer to that particular transaction in the future.
- Implement flexible mode of payment: Implement a flexible mode of payment to make it easy and convenient for your clients to clear the due on time.
There is various accounting software that can help you out in creating invoices, whether you are a small business owner or a freelance designer. The above points mentioned in the article would help you create an effective invoice. Billbooks software helps you create your invoices faster with their ready-made as well as customized templates. Learn the trick and get on with your freelance project with ease!