When it comes to freelancing, it can feel like you spend all of your precious time working on projects. While important for the progression of your business, this can mean you neglect your completed projects and the invoices that cover all of your hard work.
As well as marketing yourself, it is vital that you stay on track with the work you have done and maintain a positive cash flow.
Being late to invoice or not receiving your payments on time can significantly hamper your business and can cause financial struggles now and in the long run. While you may be so focused on delivering for your clients, it is essential to make time for your business by setting up a system to keep track of your invoices.
1. Use invoicing and accounting software
There are many applications and invoicing tools that can help you to create and send professional invoices. Furthermore, some apps can send reminders for you if clients have not paid by your specified date. You can also send a copy of the invoice to yourself for your records too.
When a client has paid, send an automated thank you email to show your appreciation. Ensure that you utilise a reliable and easy to use accountancy program such as Pandle to keep all of your freelance work, expenses and outgoing payments organised and punctual.
2. Create a log
It will take a few seconds to input invoice details into a database. This database can be where your store client information too, making it easier to create and track invoices. Make sure to use a format tool to colour code any overdue invoice so you can see the outstanding payments at a quick glance.
It’ll mean you never miss a payment deadline again.
3. Devise an invoice coding system
Working out how best to number and code your invoices is important for you and your clients. By having a logical system, it makes it easier for you both to search for invoices and make sure they’re paid. It’s also wise to keep your payment terms as simple as possible across all your clients, wherever possible.
4. Consider your payment options
By offering more flexibility with your payment options, you may find that clients are quicker to pay and more responsive to you when you send you invoices. You should aim to make payment as easy as possible for your customers, as long as it is no detriment to you.
Consider online payment methods as well as debit and credit cards; you can also try peer-to-peer payment tools in order to make payment as easy as possible for both you and your clients.