Are you a freelancer struggling with invoicing? Do you find the process of creating and sending out invoices to clients to be tedious and time-consuming? Well, you’re not alone! As a freelancer, your time is precious, and every minute spent on administrative tasks is a minute taken away from your projects.
But fear not, we’re here to help! We’ll guide you through everything you need to know about how to invoice as a freelancer. Stay tuned till the end, where we will be sharing a few invoice templates that you could put to use right away.
From creating professional-looking, branded freelance invoices to tracking payments, we’ve got you covered. So that you can sit back, and focus on what you do best – grow your business!
But, first let’s take a look at the basics of invoicing for your freelancer work.
What is an invoice?
An invoice is a legally binding document provided by freelancers like you to clients to request payment. It outlines details of the goods or services provided, the total cost, payment due date, terms of payment and more.
Why are invoices important to freelancers?
Invoices are of utmost importance to freelancers for the following reasons:
- Proof of services & charges agreed upon: Invoices in general outline the terms of the work agreement and serve as proof of the services provided and the amount owed.
- Keep track of finances: As a freelancer you typically send out invoices regularly, usually at the end of a project or a specified billing cycle, and payments are made based on the terms agreed upon between you and your client. This helps you ensure that you are paid on time and in full.
- Manage better cashflow: By sending invoices on time and keeping track of payments received, you can ensure that you have a steady stream of income and can plan your finances better.
- Keep up a professional image: Sending out a well-designed invoice shows that you take your work seriously and that you value your client’s time and resources. It’s also an excellent opportunity to showcase your brand and leave a lasting impression on your clients.
Different types of invoices useful for freelancers
As a freelancer, you’ll likely come across different types of invoices that you can use to bill your clients for services rendered. Here are some of the most common types of invoices that freelancers use for their work:
- Pro forma Invoice (Quotation): A pro forma invoice is a quotation prepared in the format of an invoice. It outlines the cost of a service or product before it is delivered. It’s often used to give clients an idea of the total cost of a project before they commit to it. Most freelancers use pro forma invoice (or quotations) to ensure that they and their clients are on the same page regarding the scope of the project and the expected costs.
- Partial Invoice: A partial invoice is an invoice that’s sent for a portion of the total cost of a project. It’s often used in long-term projects, where work is completed in stages. Sending out partial invoices can help you manage cash flow and ensure that you are paid for the work you’ve completed thus far.
- Recurring Invoice: A recurring invoice is an invoice that’s sent regularly, often monthly, to clients with whom you have an ongoing relationship. It’s commonly used for clients who have hired you on a retainer basis or for ongoing work that’s expected to continue for an extended period. Thus, recurring invoices can help you save time and ensure that you are paid consistently for your work.
What are the details that should be included in a freelance invoice?
When creating a freelance invoice, there are several crucial details that you include to ensure accuracy and prompt payment. Here are some of the essential details that you should definitely include in an invoice as a freelancer:
- Logo and Business Information: Your company logo and contact information should be prominently displayed at the top of the invoice. This is good practice for branding as well
- Invoice Number: A unique identifier number should be assigned to each invoice to keep track of them.
- Account Number: Ensure you include your client’s account number.
- Date: The date the invoice was issued should be clearly stated.
- Due Date: The due date for payment should be included to ensure timely payment.
- Invoice Total: The total amount to be paid should be listed, including any taxes or fees.
- Contact Info: The client’s contact information should be included for easy reference.
- Detailed Task List & Charges: A detailed list of tasks performed and the corresponding charges should be included to help the client understand the breakdown of the invoice.
- Payment Terms: The terms of payment should be stated, including how a late payment will be handled, and whether a late fee will be charged.
- Tax: Any applicable taxes should be listed on the invoice.
How to create and send an invoice for freelance work ?
Creating and sending freelance invoices can be time-consuming. You can put it off for as long as possible, but all that does is delay payment—and no freelancer wants that! Here are a few ways to go about it with ease:
Freelance Invoice Templates
One of the easiest ways to create an invoice is to use a free invoice template. There are many free invoice templates available online that you can customise to fit your needs.
They mostly come in Word documents, Excel spreadsheets, Google Docs or some other predesigned graphical layout with fields such as the date, invoice number, itemised charges and the specific details of the project or service you are offering. These templates can easily be modified with your brand colours and logo to reflect your brand personality.
Here are three freelance invoice templates that you can put to use right away for FREE.
There are tools built to streamline your entire freelance invoicing process. They can help you save a ton of time that you could use to focus on what you do best – growing your business.
Once you have created an invoice as a freelancer for your work, it’s important to send it to your client in a timely manner. One effective way to do this is to send your invoice along with a friendly email. When composing your email, it’s important to keep it simple and clear.
Open Flo is here to help
If you’re looking for a popular invoicing tool, Open Flo is an excellent one to consider. With features like customisable freelance invoice templates, automated payment reminders, and the ability to offer clients a wide range of payment options – UPI, credit & debit card, net banking, NEFT, RTGS, IMPS etc., Open Flo can help simplify invoicing and save you time. Additionally, its user-friendly interface can make invoicing a stress-free experience. By choosing Open Flo, you can focus on what you do best – delivering quality work to your clients – while leaving the invoicing to the experts.