As a new freelancer, it’s easy to make mistakes when invoicing clients. After all, you’re still learning the ropes and figuring out how to run your business.
It’s essential to avoid these mistakes, though, as they can cost you money and cause problems down the road.
Moreover, they can give you a bad reputation with clients, which you can avoid with reliable invoicing software.
To help you prevent these mistakes from happening, we’ve put together this list of the most frequent errors we see new freelancers make.
1. Sending the Invoices Late
This one is perhaps the most common mistake new freelancers make. They wait too long to send their invoices, and as a result, they don’t get paid on time. It can be a real problem, mainly if you rely on that income to pay your bills.
You need to set up a system for sending invoices immediately after a project is completed. Send them via email or, if you prefer, use an online invoicing service. Just make sure they’re sent right away so you can get paid promptly.
2. Not Itemizing Your Services
When you’re just starting in the freelancer space, it’s easy to give your client a total price for the project without itemizing your services. However, this is a mistake that you should try and avoid. If you do, your client may not be aware of all the work that went into the project and, as such, may not be willing to pay the total price.
Itemizing your services helps you avoid this problem. Include everything you did for the client, including any research, planning, writing, editing, etc. It will help your client understand the value of your work and enable them to make a more informed decision about what they’re willing to pay.
3. Not Giving Your Client a Deadline
Failing to give your clients a deadline for payment can be a problem because it allows the client to drag their feet on paying you. They may take weeks or even months to pay, which can strain your business. Also, if you have other projects lined up, it can be not easy to schedule them around an open-ended invoicing system.
Make sure to include a payment deadline on your invoices. Give your clients a specific date by which they need to pay and clarify that there will be consequences for late payments (e.g., interest charges, late fees, etc.). It will help ensure that you get paid promptly.
If a client doesn’t pay on time, it’s essential to follow up with them. It shows that you’re serious about getting paid and that you’re not letting the matter slide. It also puts pressure on the client to make the payment, which can help encourage them to do so.
There are a few different ways you can follow up on late payments. You can send a reminder email or give the client a call. You can also send a formal notice of collections if the price is significantly overdue. Whatever method you choose, follow up promptly and consistently until the bill is paid.
4. Poorly Written Invoices
It’s easy to throw together an invoice without giving it much thought. Your invoices reflect your business, and, as such, they should be professional and well-written.
Take the time to ensure that your invoices are clear and concise. Ensure they include all the relevant information (e.g., your contact information, the client’s contact information, a detailed description of the work completed, the total price, etc.) and that they’re free of any errors.
Including this information will give your invoices a more professional appearance and help you avoid any misunderstandings with clients.
5. Not Keeping Good Records
It’s essential to keep good records of your invoices and payments. It will help you track your income and expenses, which can be helpful come tax time. It can also be beneficial if there’s ever a dispute with a client regarding overpayment.
Make sure to save copies of all your invoices and related documentation.
To Sum It Up
Invoicing is an integral part of running a successful freelance business. By avoiding these common mistakes, you can ensure that your invoices are accurate, professional, and effective. It will help you get paid promptly and avoid any misunderstandings with clients.
