After a freelancer crosses all the hurdles of getting a job, performing it well — comes the biggest hurdle out of their control which is getting paid. There are a slew of confusing payment methods, payment terms and contracts which can be overwhelming and daunting in many cases. To avoid the hassle of this, many freelancers turn to freelancing platforms to outsource most of their payment related concerns. However, the cost of this can be steep — with freelancing platforms sometimes charging 10% to 20% commissions for every project successfully completed.
Experienced freelancers however catch up to this and decide to issue their own invoices to be in control of their payment terms. Here are simple invoicing components for new freelancers who would like to quickly learn how to issue their own invoices:
Client Details: Invoices help serve clients perform basic accounting functions. So mentioning client details such as Client Name, Point of Contact, Email Address of Client and Address of Client are important components that help accountants identify who the invoice is addressed to.
Description: Task details help remind the client what they hired you to do. This is great to also create a breakdown of your billing logic in case there are disputes in future.
Qty and Price: Adding a quantity field helps to break down the number of hours or the amount of effort spent by you and goes towards building logic for your pricing. Even for fixed contract based pricing, providing a breakdown on the effort calculator gives clients an easy reminder of the billing logic and reduces wastage of time with follow ups or billing questions from clients.
Payment methods: After you have created the invoice with the final amount due, the next decision to be made is how to collect payments. If clients are in the same country as you and have local bank accounts, domestic bank transfers become an option. If clients are international, transferring funds becomes more complicated. However, bank transfers are always a hassle for customers since banking applications and time to receive funds into bank accounts have a very poor user experience and uncertainty around payment times. This is why customers sometimes turn to Paypal or Transferwise to collect payments. When you use these services your clients can pay through their cards whereas you can receive payments into your bank account. These platforms charge high fees — usually 5% or more and have hidden fees for bank transfers etc.
At Friz, we have a solution for you that bypassing the hassle of all of these decisions and choices at a much lower cost than existing options. Simply issue an invoice with our platform in 2 mins or lower, email the invoice to your client and choose to get paid into your Friz Mastercard for a single fee of 3%. If late payments and chasing clients for payments is a huge hassle, simply request for invoice financing to get paid upfront by Friz on legitimate invoices at a 5% fee. We hope to see you at Friz