How To Freelance Tuesday: Invoicing for Beginners
When I started telling folks I was going freelance, their first response was, “Oh, that’s great!”
For many, their second was, “But you know you need to do your own invoicing/billing/tracking/tax paying/contracts/etc., right?”
My response was something along the line of, “Yeah, I’ll figure it out. It can’t be that hard.”
It actually really isn’t. Here’s what you need to know as a new freelancer — no fancy apps needed.
What Is an Invoice?
I’m sure the folks I talked to had a certain idea in mind of what an invoice is. It’s this contract-like Quickbooks thing with long, cryptic invoice numbers and a bunch of industry-specific information like a second language that you enter into a software program, and then you have to mail it, and then you have to track it, and what if payment doesn’t come in, and…
Hang on. Let’s just define what an invoice is, first: It’s a statement of goods or services provided, and a price.
It’s a bill, like the check you get at a restaurant. You’ve probably gotten a check that was printed out with the food and drinks ordered, the price, the restaurant’s info, and a little guide to tipping. You’ve probably also gotten a check that was a few scrawls on a pad with a hand-written price. Either way, you probably didn’t think too much about its format. You just wanted to make sure they got what you ordered right and did the math correctly, and you were happy to pay it.
Think about an invoice like that: It’s more about the agreement than about the construction.
What Should an Invoice Include?
Like the above example of the diner check, an invoice needs enough information to make sense of the agreement. At its basic, an invoice should have:
What you, as a freelancer, have done.
What you’re charging for it.
How to send you the payment.
So:
I did some writing for you. There were two things I wrote.
It’s $50 a piece, so the total is $100.
Send me a check please.
That’s really enough information for your client to understand what they need to do to remit payment to you (albeit in a really simplified manner).
Should I Have More Things on the Invoice?
Yes, but you don’t need much. You should include:
Your name (obvi), and your address, email address, and phone number. They might not be needed, but it’s good to include them from a professional perspective.
The company name of your client, your personal contact (or a contact they tell you), and the address.
A way to track for both you and them. So:
An invoice number, which you create. It’s really whatever you want — you’re the boss now, so you can create any system, straightforward or arbitrary, that you want!
The date.
Optional: A contract number or description, if your invoice is matching a contract.
More of a deliverables description, if needed. If you “did some writing,” include titles, or internal ways to reference the project.
More information on how to remit payment, if needed. Note that the client may have a system already, in which case they’ll tell you and you can just write “Pay via ___.”
Include a “Pay by” date. So, “Due within 30 days of receipt.” Or 60 days, however you want to work it. This is set a date at which you can follow up, and everyone knows their remittance timeline expectations.
A thank you!
What Does This All Look Like?
Your invoice can simply look like this (feel free to copy this):
Awesome Writer
55 Historic Site Way
Boston, MA
email@email | 617.###.####
Awesome Client Contact Name
Awesome Client Business Name
55 Someplace with a View
San Francisco, CA
email@email | 415.###.####
August 4, 2020 | Invoice #7777
Description (from Contract X):
Blog Post #1 — $200
Blog Post #2 — $200
Blog Post #3 — $200
Total: $600
Due within 30 days of receipt. Pay may be remitted via check, PayPal, wire, or Bitcoin wallet.
Thank you!
That’s it. And that’s nearly my standard invoice template right now (not the Bitcoin part!).
What About the Fancy Software? Did You Do that on Fancy Software?
I made my invoice in a Word doc. I actually used the Word doc invoice template, and I didn’t like it, so I simplified it from the template. When I need an invoice, I simply update the info, save it as a .pdf, and send it via email.
Yes, there are apps and software tools that you can use to do this, if you so feel inclined, and I’ll probably move over to something like that when I get a bit more advanced. As of right now, this is really all you need, and my clients have been fine with it.
What About Tracking?
Yes, you do need a way of tracking, to make sure that you’re getting paid, but also that you’re billing for the right work. I have an Excel that I use, and write down my projects and the corresponding invoice number (that’s why it’s important!), and when I get paid. A kind of project tracking like this — with invoices, contracts, due dates, etc. — is going to be key to keeping organized as your freelance.
Wait. What if My Client Wants Something Different?
The wonderful thing I’ve learned in my fairly short time freelancing is that you and the client can figure it out, and do what’s good for the both of you. Often the client has worked with freelancers before, and will simply tell you the information they need. You can also always ask. What’s more important here is that you’re keeping an open line of communication with your client, so that you can not only discuss the project details, but that you can discuss the payment details, too.
That’s my intro to invoicing — hopefully this has helped you out!