As a freelancer or sole proprietor, you probably count on every penny that comes in right? Do you find it difficult to get paid in a timely manner? We have heard that a lot. So, we have come up with a list of ways that may help you get paid sooner.
- Set up an invoicing system.
- Send your invoices to clients right a way and follow up regularly if you haven’t received payment in a timely manner.
- Payment terms are negotiable, so change net 30 to net 15 days or make payment due at time of service.
- Instead of paper checks, request electronic payments or direct deposit.
- If you are doing work for a bigger company, find out who is responsible for paying the invoices and follow up with them directly.
The invoicing system is important to have, especially for tax time. It is a way to keep track of how much you billed and how much income you will need to report to the IRS. As you start to make more and more money, it may also be a good idea to set up an LLC for the work you are doing. Check with your tax adviser or accountant to find out what would be best for you and your business.