Getting Paid: How to Ensure Your Invoices Are Paid in a Timely Manner
by Annette R. Lough
Freelancers, service providers, contractors - whatever we call ourselves, we can all
agree on one thing: we love getting paid. When I'm expecting a check, a trip to the
mailbox is like an adventure. Which client paid me today? What can I buy tomorrow?
Inevitably my thoughts wander to exciting possibilities, like the new CD writer I
can now afford (to expand my business, of course). Or how about that new television
I've been wanting for my office (to watch CNN and do "research"), or the new color
laser printer I've got on my wish list?
Unfortunately it seems as if every check goes for less extravagant expenditures such
as the electric bill, the phone bill, and so forth. While cashing the checks is the
ultimate payoff for doing the work you love, getting that check in hand is often a
little more laborious than you might think. Here are some tried and true tips for
ensuring your walk to the mailbox is a pleasant one.
- When working with a new client, spell out your payment terms up front. Usually a net-30
approach works well for everyone. That means you complete the job, invoice the client,
and payment is due to you within 30 days.
- Make sure you get a contract. This ensures you'll have some leverage if the company
fails to pay. Generally the client will give you a contract that spells out payment terms
and rates. However, you can create your own contract with software designed for simple
legal matters. Or, invest a few dollars and have a professional contract prepared by a
qualified attorney. (Visit the
Ants.com Community Resources Legal page, for links to several
online sources for legal forms and advice.) For ongoing projects with a single client,
bill once a month. This simplifies matters for the client, and you'll have less paperwork to manage.
- Provide a detailed accounting. If you're billing by the hour, indicate how many
hours were spent on research, phone calls, writing, revisions, etc. This eliminates
questions on the part of the client who may wonder what exactly he's getting charged for.
- Bill promptly. When you complete a solitary job for a client, take the time to
invoice him right away. While that sounds simple enough, it's easy to get sidetracked
by other jobs, pending deadlines, etc. ? Prepare professional invoices. With today's
sophisticated software, there's simply no excuse for not sending a nicely typed and
printed invoice. Remember, even your invoice reflects your professionalism - or lack
of.
- Be sure to include your social security number or employer identification number
on every invoice. Clients need this important tax information for their records. To
speed things up, include a signed and completed copy of IRS Form W-9 with your initial
invoice. You can get copies of the form from your local IRS office or your CPA. ?
Send the invoice to the right person. Don't assume you can send your invoice directly
to accounts payable, and they'll pay it without question. Usually payments will have
to be approved by a department head or someone with the power to authorize the
expenditure. ? If you're having difficulty getting paid, make a polite call to your
contact. Have in hand the date of service, the date you billed, the invoice number
and the amount. If a check doesn't follow within 5 to 7 days, send a duplicate invoice.
Getting paid what you're due shouldn't be the worst part of your freelance career.
With a little care and attention to the details, opening your mailbox can always be
a joy!
And if you are still having problems collecting on your bills, try Trumbull Services to help
you resolve your bill collection problems, and their prices are very reasonable.
See their web site at www.trumbull-services.com or go directly to their "FastBack"
Service web page: https://www.trumbull-services.com/FastBack/getFastBack
Trumbull Services is Charles Patridge's recommendation.