One of the most daunting tasks as a freelancer is managing your own cash flow. Clients do not always pay on time, so one needs to make sure to handle invoices properly. A report from the Independent Economy Council (IEC) has found that 59% of freelancers are owed $50,000 or more by their clients — leaving many freelancers understandably frustrated.
Being disciplined about payments is a big part of any freelancer’s reputation. Making compromises can result in clients becoming lax in their payments and sets a precedent for future business. The IEC report has also found that less than half of freelancers utilize dedicated payment software. The freelance workforce is growing at record numbers: 36% of the U.S workforce participates in freelancing and over 50% of Southeast Asian countries such as Vietnam and Indonesia. As such, payment software has become a necessary tool that all freelancers should use. Paywong is a good example of a free invoicing tool for freelancers.
There are some precautions that can be taken in order to ensure the highest possible chance of keeping cash flows constant:
- Do your researchâť—
If you are a freelancer, you will likely be no stranger to being taken advantage of by clients who lack respect for the work you have done. Before responding to a request, one should establish whether the client has a good reputation as a paymaster. Talking to other freelancers, or finding online reviews about a client often helps in this regard.
- Organize your business processâť—
Agreements should be laid out in a contract, never start a project based on a verbal request. Creating a template contract that you can then personalize depending on the client’s requirements is a good way of keeping an overview. Consider how to bill your clients — it is important for you to handle your own invoices!
- Crypto as a payment alternativeâť—
While many believe cryptocurrencies to be too complex or unstable to constitute a payment method, this is not the case. Receiving payments in stablecoins pegged to the U.S. Dollar enables instantaneous transfers and makes invoicing easier than ever before.
All in all, a successful freelancing career requires discipline and organization. Be careful about doing work before you get paid, and make use of a proper invoicing system in order to receive payments ASAP and securely. Everyone comes across a bad client at some point, but it is important to minimize risk in order to succeed.
Paywong is a free-to-use invoicing system designed for freelancers around the globe. For more information about how to send and receive invoices at the click of a button, visit:
https://paywong.com/
Or check out our socials:
