Freelancing isn’t all about the work and services you provide. It also involves several tedious tasks that, when not done thoroughly, can be disadvantageous to you as a freelancer.
5 Freelance Invoicing Mistakes And How To Avoid Them
One such task includes invoicing your clients. Preparing and sending invoices is a primary task that you need to do properly or else you won’t get paid accordingly for your services.
While invoicing clients seems like a simple and easy thing to do, it’s not the case for some freelancers. Even seasoned freelancers may still commit the most usual freelance invoicing mistakes because they often neglect to remember the nitty-gritty details.
If you’re a freelancer, it’s best to familiarize yourself with some of the most common freelance invoicing mistakes and some tips on how to possibly avoid them:
1. Incomplete Or Incorrect Information
Perhaps the most common mistake that a freelancer could make when sending out invoices to their clients is putting incorrect and/or incomplete information on it. While it’s a simple mistake, it could turn out to be among the worst ones because it may lead to more serious and negative scenarios.
Forgetting important details such as an invoice number, tax numbers, client’s name, and address, and total amount due could be a reason for the client to not pay on time. It’ll also give your clients an impression that you’re not professional enough to pay close attention to such important details.
To avoid this mistake, make sure you have all the information you need before filling up the invoices. Double-check every detail that you’ll input to lessen the chance of forgetting anything or, worse, writing incorrect information.
2. Not Using An Invoicing System
Even when you have a lot of time to spare in making and sending out invoices, it still won’t hurt to consider using an invoicing system for freelancers.
Utilizing a freelance invoicing tool will not only make the task easier but also more accurate. Most freelancers prefer to take advantage of such tools, especially when they have too many clients, and it’s getting harder to manage their invoices all at once.
Freelance invoicing may be done manually, but if you choose to do so, you also need to expect that you’ll commit, at least, one or two invoicing mistakes along the way.
Whereas, when you decide to use an invoicing system, you minimize the possibility of errors while also improving efficiency.
3. Sending A Freelance Invoice To The Wrong Person
Another freelance invoicing mistake that you can make is sending out the invoice to the wrong person or client. This usually happens when manually sending invoices using your email contacts.
If you’re invoicing a large company with several billing departments, your invoice can end up with the wrong person or department if you’re not careful enough.
To avoid this, have the right email address for the person or the department. Before sending the email or the invoice, double-check the name and invoice number to know for sure that it’s the right freelance invoice.
4. Not Setting A Payment Due Date
Even when the invoices you sent to your clients have the right information and were received by the right person, it doesn’t mean that you’ve successfully completed the task.
There needs to be an exact due date for the payment or else the payment won’t be made as expected. You have to remember that your clients are just as busy as you are. When they receive your invoice with no pressing deadline, they might take it for granted or forget about it easily.
What you can do, instead, is to set a specific payment schedule for each client and have it readily written on all invoice templates that you have saved on your computer.
That way, there’s no more risk of you not being able to set a payment date for the invoices, and you can focus more on the other details that you need to include on your freelance invoice.
5. Sending Invoices Late
When you’re too busy on projects and other freelancing stuff, there’s a big possibility that you’ll sometimes forget to send invoices on time. When this happens, you also delay your clients’ payments.
Keep in mind that clients expect you to send out invoices as soon as the work is finished or as stipulated in your contract.
Delaying the invoice for days or even weeks will send a message that the client doesn’t have to pay on time.
To avoid this, you can prepare the invoices ahead of time or learn how to send recurring invoices for ongoing projects. That way, you don’t have to manually send the invoices and just wait for the clients’ payments instead.
Paying Attention To Your Invoices
As a freelancer, invoices are important because, without them, you won’t get paid for the job or project you did.
Make it a habit to send them correctly and on time to also expect the payment in the same manner. Avoiding the mistakes above will not only refine your cash flow but will also make your freelancing life easier.
If you still can’t keep track of everything, and you seem to continuously commit these invoicing mistakes, perhaps it’s time you consider using an invoicing tool or system to help you out.
It may be an additional cost on your part. However, in the long run, you’ll realize that it’s more cost-effective and time-saving.
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