Do you work as a subcontractor? If so, you will need to compile invoices as soon as your projects are finalized.
Subcontractor invoices help to clearly define all of the work provided and all of the costs involved. They avoid any confusion regarding these services and ensure that you are compensated for your work.
Get this wrong, and you could be forced to deal with delayed payments, confused clients, and the endless barrage of questions and payment follow-ups that inevitably ensue. A good subcontractor invoice will not only expedite the payments, but will also ensure you spend less time on the things that don’t matter and more time on the things that do.
The exact contents of a subcontractor invoice will vary from job to job, but it may include the following services:
A good subcontractor invoice will also help to keep all of your accounts in order. You can keep track of all your expenses and your income, which will come in handy when it’s time to file your taxes! Proper filing can be very difficult when you work for yourself, but invoices go a long way toward simplifying the profession while also making life easier for your clients.
You can bill your clients by sending them an invoice. There are a few things to get right with your billing. Here’s a short list:
That’s it! Those are the basics of how to bill someone for your work.
Knowing how much to charge for your work is a complicated area. We want to help freelancers, so we’re going to give you some general tips here about settling on the best amount to charge clients for your services.
Let’s think about this from a few different perspectives:
First, how much do you want/need to earn? You should create your rates to reflect what you need to earn. Keep in mind that you won’t get paid for some of the things you must do, such as preparing your taxes, looking for more customers, and weekly admin work. So, your hourly or project rate needs to be a little higher to make up for the unpaid work that is part of every freelancer’s life.
Second, how much do others charge for similar services at your level of expertise and experience? This question can be a little difficult to answer, but you can just ask. Join a Facebook group and ask. Call a local competitor and ask. Once you know what they charge, you can go under that if you’re new to the market or over it if you’re the boss.
Another massive item you should plan for is taxes. You’ll be paying your own taxes as a freelancer, so your rates should incorporate the taxes you’ll eventually have to pay. The average tax amount paid by Americans, for all taxes, is about 29%. This means you’ll end up paying $3 in taxes out of every $10 you earn. Price your work to pay your taxes and be left with the income you want.
Your best rates will be different because everyone’s market is different. What works on the West Coast might not be successful in Texas. Try a few different price points until you find the rate clients accept and you can live on.
This part is easy! Here’s a step-by-step guide to getting your invoice done:
Once you’ve finished these six steps, you are ready to send your invoice to your client. Send it straight from Indy or download it as a PDF and use your own email client to send it.
Indy offers an all-in-one platform for freelancers to manage all their admin work. When you sign up with Indy, your invoicing gets better because the other tools work together. For example, you can use Indy’s Time Tracker to note the time spent on a project. When you’re ready, the Invoice tool can automatically pull your unbilled hours for the project onto your invoice to make it ready to use. This makes your billing more accurate and saves time as well. When you set up your customers and projects with Indy, your entire workflow becomes smoother.
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