A handful of people like to do invoicing; I`m not one of them. Working as a digital nomad, you jump from client to client, from project to project, and you don`t have time to deal with invoices.
However, the invoicing process, even though it takes time, is essential to maintaining your business and to secure a steady cash flow.
Regular payments are important for several reasons:
♦ It keeps your business running.
♦ This is a material world, and we all work for money, so it`s important to get paid.
♦ Your monthly necessitates need to be paid.
To help, read these tips to make your invoicing process painless:
Terms and Conditions
There are two types of clients; the one who is a joy to work with ─ who offers flexible deadlines, freedom of creativity and pays on time ─ with the other type being the exact opposite.
To avoid the second type of client who will avoid paying you, make sure that both parties have signed a contract, and you and your client have agreed to terms and conditions. Also, make sure to include everything from how you want to get paid to when you want to get paid, and of course, include the late fees if a client doesn’t pay you.
To stimulate payment, you can also add a discount for early payments. And, of course, add that you will charge a percentage for every five days that your invoice is due.
Ask for a Deposit
Select the amount that will be good for you. In this economy, people will take whatever they can get, but you need to make sure that you can cover your monthly bills.
Once you have set the price for your project or services, make sure that you and your client agree to pay upfront. This way, you will be covered if your client goes missing and is not taking your calls. On the other hand, your client will be sure that you will finish the project. Therefore, it`s an ideal situation for clients that are new or not paying regularly.
Use an Invoicing Tool
Welcome to the 21st century – we don`t use paper.
Yes, all around us is going green, such as electric cars, electric cell phone batteries and paperless invoices.
Using an online invoicing tool, such as Sighted, is not good just for the environment, it is a good solution for you, as well.
With an online invoicing tool, you can send and receive your invoices from all parts of the world, at the same moment, and your clients can pay you in the same way.
About 29% of invoices that are not paid have no due date. We have said, several times, that by not adding a due date to your invoice, it means that you don`t need your money right away and your client can pay you whenever.
In a business world, that means “Thank you; I will work on your money and send you a payment when I have a chance.”
Are you a charity?
Adding a due date is a critical step in the invoicing process, and it depends on that date when will you get paid. The due date is usually 7, 10 or 15 days after the invoice has been sent.
Keep Track of Invoices
Whenever you are a freelancer or a small business owner, you probably work with several clients, and the more clients you have, the harder it gets to keep track of who paid what and when and which ones are still due.
The easiest way is with numbering the invoices and adding all of that into an online invoicing tool. This way, you will have everything in one place.
The invoicing process is important for maintaining your business, and overdue invoices can cost you more than you might think.
Again, clients are not the only one to blame when invoices are not paid; we usually forget to add essential information, the amount due, the due date or even to send the invoice to the right person.
Once you figure out all of these steps, you will be invoicing like a pro in no time.