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“Is there a way to protect myself and keep things simple for everyone involved?”
It's kind of a nightmare scenario: to work on something important and not get paid for it. And of course I mean in a situation where you're expecting to get paid.
After a freelancer friend had a negative experience working for a company and being stiffed on the bill, our caller wants to make sure this doesn't happen to him. What can he do to be proactive about invoicing and collecting payment? Let's see if we can help him out!
I'll also say right up front that while it's important to pay attention to, I don't think you should let this concern hold you back from getting started. Whenever you ask, "What could go wrong?" it's also good to ask, "What could go well?"
A friend of mine did some work for a company and didn't get paid. In retrospect, it seems like they took advantage of her, but she also didn't have a clear contract and only had verbal authorization from one person who's no longer at the company. I want to start offering design services to startups, and naturally I'd like to avoid this. I also don't want to spend a lot of time chasing down invoices, however. Is there a way to protect myself and keep things simple for everyone involved?
From the position of a small business owner, I always pay my vendors, but I'll say that I prioritize paying the ones who are really proactive. I actually respect them more. It's not fun to get an invoice that is really overdue—like the work was done two months ago but they didn't really bill me for it until now.
It's just better to couple the payment with the work. So with that in mind….
One of the best things you can do as a freelancer is to make sure you have a system for this process. First and foremost, that clear contract is essential. A verbal authorization from someone at a company who then leaves is problematic.
Be fast and proactive with invoicing. It's human nature to leave it until later. Fight human nature!
Quickbooks, Freshbooks, Zoho, and WaveApps all make it simple. It will also send reminders on your behalf to clients who haven't completed payment.
You should almost certainly get a deposit, typically 50%, and don't start work until you have it. Then, whenever you deliver the project or it's otherwise complete, invoice for the balance right away.
