When you are self-employed, you are responsible for all payments owed. That means you must send out invoices for your services.
As with most freelancers, I was unaware of the importance of an invoice. I knew about them and got the basic concept, but wasn’t sure how I made one up.
When I started my career, I worked through a freelancer website. This site connected me with clients, so I wasn’t putting in much effort finding new contracts. It also handled the financial aspect of being an independent contractor. I wasn’t invoicing clients or tracking my income. The website took care of all that for me. They sent me a convenient form at the end of each year that I used for my taxes, and that was it.
Then I had my first client outside of that site.
All the financial matters were now my responsibility. I didn’t know the first thing about making an invoice as a freelance writer. Well, I knew the basics. List the services, the prices, the total, and the due date.
But did my first invoice look professional? Nope. It was a simplistic invoice template I got online. All I did was fill in the correct information.
It got the job done, though. I replaced it with a proper invoice, nonetheless.
But that raises the question of what is a proper invoice? Let’s find out.
Why Do I Need an Invoice?
Invoices are a request for payment for your services. Businesses and self-employed individuals use them.
An invoice itemizes the work you did on a project. It breaks down your work hours and includes any expenses you incurred. Some invoices include sales tax or processing fees. The client sees the itemized work, and gets a final total for everything.
Along with the total, invoices provide the client with a deadline for payment. Plus, information on delivering payment. Whether that’s via a check, cash, a money-exchange app, or something else.
Since an invoice is a legal document, having one aids in tracking your projects. They denote what services you provide a client. Along with demonstrating that you requested payment. Having this record makes taxes easier and keeps you more organized. With invoices, you see the progress of different projects. Along with your payment records.
Having an invoice has the added benefit of making you look professional. It may seem like overkill. Especially when you are starting out. In the early stages of freelance writing, you only have one or two clients. You can keep track of their projects and payment easily, without needing an invoice. But having one is still important. It makes you look professional and grants you credibility. Which aids in the development of the positive reputation you need for growing.
Further, invoices eliminate the possibility of misunderstandings in regards to payment. With an invoice, you make it clear how clients pay you, the amount they owe you, and when you expect payment.
What do I Include in a Freelance Writer Invoice?
Some details of your invoice change, but there are some non-negotiable items. Leaving any of the following out creates confusion for your clients. And it could get your invoice rejected from financial staff. Starting from the top, here is what you must include in a freelance writer invoice:
Header With Contact Information
You start your document with a header that says “Invoice.” This may seem unnecessary, but it clearly labels what the document is. This eliminates any possible confusion. Plus, it supports you in the event of any legal issues relating to payment.
Once you have your header, place your logo and full business name in the top right-hand corner. Follow that with your name, email, phone, or other contact information so clients can reach you. Yes, they are already in communication with you, but still include this information.
Then, in the left-hand corner, note the client’s contact information. This includes the company name, and address.
This provides clients with the basic information they need at the top of the page. They know the document is an invoice. And they know who sent that invoice.
It also aids in your own recordkeeping since you include the client’s contact information.
Invoice Number and Date
Each invoice needs a unique identifying number. Typically, have this be around four or five numbers. And, have the numbering system match an organization system. For instance, you have five different clients. The first invoice for your first client is #10001. That same client’s second invoice would be #10002, and so on. For your fourth client, use #40001 for their first invoice. This organizes the clients by number, and keeps track of their number of invoices.
It’s easier when you have a system planned out from the beginning. My first invoice was labeled #1. I had only one client outside of that freelance website, anyway. Starting at #1 made sense to me. Over time, it didn’t work into the system. My next client was new. Having the invoice labelled as #2 would have sort of worked, but not to organize by clients. I managed early on, but it quickly becomes confusing.
As for the date, that’s pretty straight-forward. Include the date that you sent the invoice to the client. Do not have the date when you made the invoice. Only when you sent it. This makes it easier for paperwork and financial tracking later. It also enables the use of statements like “payment due within 30 days of receipt of invoice."
Itemized Work and Services
The largest portion of the invoice is a breakdown of your work. Itemized lists show clients what services they received. Along with each item’s corresponding charge. This eliminates any confusion they may have in regards to your pricing.
Plus, it’s appreciated. Clients don’t like paying a lump sum with no idea of where that money went. Don’t charge them a blanket $200 for a writing project, for instance. I’ve done that before. And the client ghosted me. Despite stating earlier that they wanted more projects done after. At least they paid me first, though.
Break down the bill. List out any research needed and what you charged for that. List a basic per-word rate. Plus, the cost of edits/proofreading for grammar and spelling. Whatever items work for you, make the invoice logical and easy-to-digest. Clients appreciate it.
Also, depending on the contract, itemized lists of work look a bit different. For base rate contracts, you only need two columns. One that lists the price, and one that lists the service provided.
Hourly contracts need more columns. For these contracts, have one column for the work’s description. Then one column showing the per-hour rate of that service. A third column lists the number of hours you spent completing the work. And a fourth has the total amount billed for the item.
Make sure that each line item reflects what you and the client agreed on. Do not have extra charges or surprise fees.
Total Amount for the Invoice
Once you have an itemized list of work, add it all up for a subtotal. Include a separate line for any applicable sales tax. Add those to the subtotal and have a final total for the invoice.
Some people find the total unnecessary. Clients can get the total by adding up each itemized line. But still include a final total, nonetheless.
A final total makes things clear for clients. They can do the math, if they like, but it’s not required with a final total. The total tells them exactly what they owe you. No guesswork. No possibility for calculation errors. Just streamlined, and transparent, payment exchanges.
Payment Terms and Accepted Methods
The final part of the invoice details the terms of your payments. This includes listing your accepted forms of payment. These may include cash, check, or credit card. You may also accept payment through money transfer services, such as PayPal or Venmo.
Each person has their own preferences and accepted payment methods. Include them at the bottom of your invoice so clients know how they can pay you.
Then, include your payment terms. In this section, make your payment due date clear. Also, explicitly state whether you offer discounts for early payments. And what the penalties are for late payments.
How Do I Create a Freelance Writer Invoice?
Creating a freelance writer invoice isn’t too difficult. You already know what you must include in one.
Start with a blank document. Obviously. Add your company logo into the document (if you have one). Then format it into the right position on the page. Add in the other relevant information for the top of your invoice.
Next, create the columns you need for the itemized portion of the invoice. As I mentioned earlier, you will need two or four. Once your table is set up, enter each line item you need. At the end, make additional spaces for the subtotal, tax (if needed), and total.
After, detail all your payment terms and methods. Add any extra notes you want included with the invoice, as well. You can, as an example, clarify that your invoice is for only one of three phases of a full project. These notes make organizing easier.
There is invoicing software that makes the process easier, too. This software makes the process easier for you since it automates a lot. Such software can create professional, branded invoices in a matter of seconds. Templates also work, but they require more manual work.
If you are a visual learner, like I am, here are some visuals. These are of an extremely basic invoice that I put together on Google Docs. It’s only for a base rate project and doesn’t include much. But it’s better than nothing.
What’s the Best Way of Sending the Invoice?
Once you have your invoice ready, turn it into a PDF. This format is best for sending to clients since it is easily viewed.
Attach the PDF file to an email. Within the email, keep things short and polite. Note what the invoice is for within the subject line. Then state in the email body that you’ve attached the invoice for that project. And that you’ll answer any client questions pertaining to the invoice. Send it off, and then wait until you get the payment.
Make sure you send the email with the invoice within about a week of finishing the project. This ensures clients get charged within a timely manner. Once you send the email, follow-up with weekly reminders until the client pays the balance.
And, if payments are late, stick to the late payment penalty you laid out in the invoice. Don’t increase it, or change the terms of your payment due date. Also, don’t change your payment methods.
Keep a copy of your invoice and any communications regarding payments. Most of the time, you won’t need these. But, every once in a while, they are necessary. Keep them now and save yourself a headache later.
Making invoices is necessary for any self-employed individual. They are straight-forward, but you want ones that look professional. Not ones that look thrown-together. Spend a bit of time getting your invoices structured in the correct way. You’ll thank yourself later.
When it comes to invoices, what other considerations should people have in mind?