a field guide to freelancer finances
TRANSCRIPT
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II
PRACTICAL FINANCE TIPS FOR FREELANCERS BY
DESIGNERS, DEVELOPERS AND FREEAGENT
Get paid fasterLearn to price
Relax about tax
UNIVERSAL EDITION
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Table of contents
Using the break-even point to price
How I take the uncertainty out o ixed-price projects
My biggest pricing mistake
My best pricing tip
Creating a stormproo invoicing process
My invoicing terms
Credit control or reelancers
How I chase late payments
8
11
16
18
20
21
28
30
34
Anna Debenham
Daniel Howells
Field report
Field report
Anna Debenham
Field report
Matt Perkins
Field report
Welcome
A word from the editor
About the authors
Setting off
3
4
5
7
Building shelter
Table of contents
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Overcoming a ear o inances
Accounting reports and what they tell you
How to plan your cash low or holidays and long breaks
About FreeAgent
About A Field Guide to Freelancer Finances
37
43
46
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51
Paul Boag
Reerence guide: Emily
Coltman, FCA
Paddy Donnelly
Keeping warm 36
Table of contents
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WelcomeWorking as a reelancer means that along with doing the work you love, you also need to
explore unamiliar territory, like balancing the books and dealing with tax. When I started
out as a reelancer, I ound mysel ighting with complicated spreadsheets and conusing
tax returns - it was easily the worst part o working or mysel. I thought there had to be a
better way, so my co-ounders Olly, Roan and I set out to build FreeAgent, sofware thathelps you manage your business inances and tax.
Here at FreeAgent, we want to help reelancers take control o their business inances.
Making great sofware is key to that, but we like to help in other ways too - that’s why we
wrote this guide.
In this guide you’ll ind practical tips and advice or managing your inances, reerence
guides and real lie stories rom other reelancers about what they’ve learned rom their
own journeys.
Sae travels!
Ed Molyneux CEO and co-ounder, FreeAgent
Welcome
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A word from the editorWelcome to the universal edition o A Field Guide to Freelancer Finances!
FreeAgent was started in the UK but we have happy customers all over the world, and
we’ve made this edition o the Field Guide or web designers and developers operating
outside o the UK.
Many o our examples are still rom the UK, and we’d love to continue updating this edition
with voices rom all around the world - i you want to add your own ield report to the
book or are interested in authoring a chapter, drop me an email at
[email protected]. I’d love to hear rom you!
Happy reading!
Danae Shell
Editor , A Field Guide to Freelancer Finances
A word from the editor
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About the authors
Anna DebenhamAnna is a reelance ront-end developer living and working in London.
She works with a range o clients to help build ront-end prototypes, style
guides and websites. In 2013, Anna was awarded net magazine’s Young
Developer o the Year.
Daniel Howells
Daniel is a web designer and developer who specialises in both websites
and applications. Daniel is the ounder o siteInspire, one o the largest
and most well-respected showcases o web design and a directory o
agencies and reelancers.
Emily Coltman, FCA
A graduate o the University o Cambridge, FreeAgent’s chie accountant
Emily has been working with small businesses since the year 2000 and is
passionate about helping their owners lose their ear o “the numbers”
and the taxman. She is the author o three ebooks, “Rereshingly Simple
Finance or Small Business”, “Micro Multinationals”, and “Very Awkward
Tax”.
Matt Perkins
Matt has worked with many small business owners and reelancers
at Business Link in London as an adviser and or PayPal UK, where he
planned and oversaw the implementation o their UK SME engagement
strategy.
Paddy Donnelly
Paddy is an Irish illustrator and designer currently living in Belgium. Hecreates apps or kids with Wee Taps and has worked with clients such as
dConstruct, Foursquare and Mobile Vikings.
Paul Boag
Paul is a user experience consultant, author and speaker. He helps not-
or-proits such as the European Commission, UCAS and Doctors Without
Borders adapt to the digital world. He reocuses them on user experience
and engaging with a new digitally-savvy audience.
About the authors
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Setting off Pricing your work might eel as daunting as
setting off into the wild - you’ve heard plenty ostories about how others do it, but you’re not
sure how it’s really going to work or you.
In this section, you’ll ind some practical adviceto help you evaluate your approach to pricing.
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4,416m
LOFTY PEAK
SUMMIT
ABOVE SEA LEVEL
Using the break-even point
to price Anna Debenham
We all love the reedom that being reelance gives us. But at the end o the
day we also all need to make money. Being the best designer or developer in
the world sadly won’t help you i you can’t make enough money to survive,
which is why the igure called the “break-even point” is so important or
reelancers.
Your break-even point is the point at which your business is making enough revenue to
cover all your costs (without net loss or gain) and anything you make on top o this is
lovely, lovely proit. You’ll be able to send out quotes conident that you’re ensuring your
own inancial security and building up your business - the key to uture success! To get the
ball rolling, you need to work out the costs associated with your business over a year.
Step 1: Add up all your costs
These might be ixed costs (a cost that stays the same regardless o how many sales your
business makes, or how active it is), or example:
Using the break-even point to price
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• Rent/mortgage
• Subscriptions
• Web hosting or your own site
• Insurance
or they might be variable costs (changes with how many sales your business makes, or
how active it is), or example:
• Postage costs
• Taxi ares
• Web hosting or customer sites
• Electricity
Also look at your personal outgoings – how much do you need to take in each month to
pay all your bills? Don’t orget to include anything that will change as a result o beingreelance such as childcare costs, travel and any extra equipment like your own computer
and sofware.
Step 2: Plan your capacity for billable days
How many days do you think you’ll be working every year? Your true capacity is probably
lower than you think. Out o 365 days in a typical year there are 261 working days (Monday
to Friday) - but o course you’re not going to be spending 261 days working solidly.
Take into account public holidays and the number o days you want to take as holidays. As
a reelancer you can have a lot o lexibility around taking time off, but not working means
not earning money, so you need to consider all o this when iguring out your rate.
Also think about the days you need to set aside or maintaining and developing your
business. Invoicing, preparing accounts and tax all take time, as do inding and chasing
leads or new work, project management and correspondence. Tools like FreeAgent can
massively help with this, but don’t orget that in larger businesses this is a role in itsel, so
when you work or yoursel you need to actor in (and schedule) enough time towards this.
You can also allocate time towards your own learning and personal development. This
includes conerence attendance, and time spent reading and studying. I you don’t invest
time in improving yoursel then it will be much harder to stand out rom - or even keep up
with - the competition.
So, let’s say we subtract the ollowing rom your potential 261 working days per year:
Maintaining and developing business: 10% (26 days)
Learning and personal development: 5% (13 days)
Holidays and time off: 10% (26 days)
Using the break-even point to price
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Sickness and unoreseen circumstances: 5% (13 days)
= 183 available days to work per year
That means that, in this example, you are not able to charge or nearly hal o the 365 days‘available’ in the year.
Step 3: Calculate your break-even point
To calculate the break-even point on what you charge, divide the sum o your yearly
outgoings by your yearly billable days.
Example: How Jenny works out her break-even point daily rate
Jenny is a reelance web designer who wants to know the amount o money she
would need to charge per day to cover her costs.Total o her outgoings per year (including household expenses): €25,000
Total o her projected billable days per year (taking into weekends/holidays/
possible sick days, etc): 183
So Jenny divides her outgoings by her billable days:
€25,000/183 = €137 per day break-even point
Jenny now knows that she’ll need to be charging her clients at least €137 a day to
cover her costs.
Remember, your break-even point really is your bare minimum. Charging this amount
doesn’t leave any room to build up a cash buffer or to expand as a business, and doesn’t
take into account external actors like market conditions. It’s crucial you bear this number
in mind when you quote or work as you want to ensure that you’re being paid a healthy
amount over this so that your business is proitable and resilient.
Making a proit is key to a healthy business and knowing your break-even point will really
help you to eliminate guesswork when it comes to quoting or work – make sure you know
what you’re worth!
Anna Debenham is a reelance ront-end developer living and working in London. She works with
a range o clients to help build ront-end prototypes, style guides and websites. In 2013, she was
awarded net magazine’s Young Developer o the Year.
Using the break-even point to price
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How I take the uncertainty out
of fixed-price projectsDaniel Howells
Spend enough time with reelancers and you’re likely to hear warnings
against charging one total cost or a job. Fixed-price project proposals
can be easier to ‘sell’ and bring less risk to the client, but the reelancer
can ear ending up working or ree or weeks (or months) because o all
sorts o variables and unknowns. Yet despite this, afer almost a decade o
reelancing, the majority o projects I undertake are still quoted on a ixed-price basis.
Why do I do this? I quote a ixed price because I’ve been obsessively tracking my project
time or as long as I can remember, and it’s taught me a lot about how I work, how long
things really take, and how to produce a bang-on estimate that ensures I’m being paid
airly or my time.
Seeing the value of time tracking
Early in my career I worked at a variety o client-services companies. Without ail, everyFriday at 5pm somebody would appear rom nowhere and sheepishly remind us to
How I take the uncertainty out of fixed-price projects
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complete our timesheets. The request was always greeted with protestations, since trying
to remember what we’d done that week and wrangling their archaic time-tracking app
into submission was never a more exciting prospect than being in the pub or Friday night
drinks.
The issue was that these numbers never had any meaning to me. For the most part
they were plucked out o thin air, and never taught me anything about how I worked or
how I could improve. But the moment I transitioned into my reelance lie, there was a
difference: the numbers were relevant. The 30 minutes doing one thing or one client and
two hours doing something else or a different client suddenly made sense, and revealed
that I was either managing one project very well, or another one very poorly.
How I track my time
When I started reelancing, I broke my time down into a detailed list o tasks:
• Proposals and initial meetings
• Creative research
• Functional requirements and documentation
• Wireraming
• Design
• Front-end development
• Back-end development
• Amendments and maintenance
A detailed list, I know, and probably verging on the obsessive. However, this level o detail
was enough to give me visibility as to what I was actually doing on a project.
To measure my time, I simply used the stopwatch on my phone and logged it in an
invoicing app afer I inished each task. When I completed a project, I could see exactly
how and where my time was spent, and this showed i I went either under or over my
ixed-price proposal.
My working day is typically seven hours, give or take hal an hour. On an ideal day, the sum
o time I’ve dedicated to project work should land somewhere around that mark. I by the
end o the day I’ve logged only a measly three hours, clearly I’ve wasted ar too much time
on Twitter or Reddit. The next day I’d hope to make up this discrepancy, but thankully
the cold hard numbers encourage me to be disciplined enough to only slip a ew times
a month. I I went over the hours I’d proposed, well, that meant my next proposal or a
similar project needed to be adjusted accordingly.
What I’ve learned
With all this gathered data to hand, what did I learn?
My design time varies much more than development time. Working in both design
How I take the uncertainty out of fixed-price projects
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and development, tracking my time made me realise that there can be huge variances
between different types o tasks even though two projects might be similar. Because
design is so subjective, I ound that I would spend a lot more time to-ing and ro-ing with
the client on design changes, whereas development is more objective and usually doesn’t
normally overrun.
I could use my historical time information to more accurately build contingency time into
my proposals. Fixed-price project work is usually criticised because the only way you can
be certain o not losing money is by padding the proposed cost out with extra hours, days,
or weeks just to make sure. That is indeed ofen the case but adding in a contingency o
time isn’t deceitul, it’s just good planning; remember that a beneit o the ixed-priced
project is that the client only has to deal with one number, and i it works within their
budget, its composition is moot.
Having archived project records right there to reer to makes it considerably easier to
quote and plan or contingencies. My projects are typically consistent in nature; normally
the design and development o a website. There are variables, o course, but or every new
project I’m always going to have a past project that’s similar in nature. Using that as a base,
I’m able to cost up my proposals ar more accurately than pulling igures rom thin air.
I’m getting faster over time. My timing data also revealed some interesting trends. I’m
neither a ormally trained designer or developer, but I have noticed that over the years
the time I take to design a site, or develop responsive templates, has decreased, either
because our tools are getting better or because (I’d hope) I’m learning and becoming more
proicient. That’s perhaps predictable, but seeing the inormation in ront o you is very
motivating and rewarding.
Refining the time tracking process
Translating the results o your time tracking into accurate ixed-price quotes might seem
daunting at irst but take it rom me – it does get easier. Afer nearly a decade o evaluating
my time and reining my quotes, I’m able to estimate my ixed-price projects with almost
dead-on accuracy, and you’ll easily become more proicient the more you do it. In act, I’ve
only recently had two projects go over estimate, both were or reasons outside my owncontrol and they’ve taught me to look out or the same potential situations in the uture.
This year, I’ve simpliied my time tracking to just three categories:
• Design
• Development: both ront-end and back-end, combined into one category
• Project management: including everything rom proposals and meetings, to general
organisation
I still give my clients a detailed breakdown o the project at the estimate stage, but afer
How I take the uncertainty out of fixed-price projects
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years o tracking my time, I’ve been able to reine the level o detail that I need or my own
records.
My tips for fixed-price pricing
I you’re considering quoting or a ixed-price project, here are some tips that can help.
Give a detailed estimate: I’ve ound that the more detail you can give at the estimate stage
or a ixed-price project, the better - it helps set expectations early on about exactly what
the client is paying or. Make sure you’ve captured in writing everything you’ve discussed
about the project, every template that needs to be designed, every unctional eature that
needs to be included. You can be certain that new additions to this list will appear during
the process, so you need a single source o truth about what you agreed to do or a given
cost. Everything else should be scoped and costed in addition, and the client should
understand that.
Show discounts on your invoice: Occasionally I offer a discount or projects that look
particularly interesting or challenging. I I discount a project, I always issue an invoice
or the ull amount that I would normally charge, then apply the discount agreed on the
invoice. It serves as a reminder to the client that I’m doing them a avour and it certainly
helps rein in any scope-creep.
Be honest when tracking time: When you’re reelancing there’s nobody breathing down
your neck anymore, and you needn’t udge the numbers just to make sure the timesheet is
submitted on time. It’s or your beneit that you’re tracking the time, so ind a method thatlets you accurately track tasks and stick with it or as long as you can to get an honest view
o where you spend your time.
Track your personal projects: Like a lot o people, I have a ew side-projects that I do
or my own personal needs. I track time on these too, since I ofen get new business off
the back o them. Knowing how long it took to create a website that had no proposal or
commissioning client means I can create a similar proposal in the uture more accurately.
Daniel Howells is a web designer and developer who specialises in both websites and applications.
Daniel is the ounder o siteInspire, one o the largest and most well-respected showcases o web
design and a directory o agencies and reelancers.
How I take the uncertainty out of fixed-price projects
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Turn time into money
When a project is inished, you can simply import your unbilledtimeslips into an invoice and send it to the client in a jiffy.
Flexible timesheet reportingIt’s easy to generate reports so you can see how your time is being
spent across different projects - you can even email them to your
clients to give them visibility o progress.
Always up to dateSeamlessly switch between mobile, tablet and desktop - i you’re out
and about just record your time on your mobile device, and switch to
your desktop to inish the job. Everything stays in sync.
Want to become amaster of time?
Take the guesswork out o billing like Danielwith FreeAgent’s online accounting sofware or
reelancers.
FreeAgent makes it easy to track all the time spent
on projects, so you’ll have an accurate record o just
how much work was involved and will know what
you should charge.
Never lose a minute againEnter timeslips or use the built-in stopwatch to accurately record every last
minute o your time as you work, so you’ll always be on the ball.
“Thank you for making my time tracking, invoicing and accounting so easy, from one happy customer :)!”
Jason Coombes, @databasejase
Try FreeAgent or ree
Try FreeAgent or ree
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My biggest pricing mistake Field report: UK freelance designers and developers
Getting your prices right as a reelancer is ofen a case o trial and error and it’s easy to
make a ew mistakes as you ind your bearings. To help you avoid some o the most
common pitalls, here’s a ew words o warning rom experienced reelancer designers and
developers as they relect on the pricing mistakes they’ve made in the past.
“When you start out, one o the hardest
things to do is price your products – but
don’t price yoursel too cheap! Not only
will you be working or next to nothing
but it can also make potential clients
think the product is cheap and not
good quality.”
Julie London, Designer
“My biggest pricing mistakes were ixed pricing
and ailing to review and communicate. I’ve
always elt that developers tend to use ixed
pricing – where we estimate up ront, give a price
and stick to it. Whereas most designers I knewwould give a price per hour, so i the project went
out o scope, they would get paid.
“With ixed pricing, I should have always been
reviewing to ensure the project is on track and
on budget, but it’s too easy (or me) to let this slip
and then end up paying mysel. In the past, I’ve
been paid the original ixed ee or a project that
doubled in time.”
Remy Sharp, Developer and ounder o Lef Logic
“I once agreed to do a project at a token
ee or an allegedly cash-strapped
charitable cause I really cared about.
The joke was on me. Every conceivable
exploitation o my time and labour
ollowed. I later worked out that I
had done the job or a raction o the
minimum wage. Lesson learned: no
matter how allegedly cash-strapped
your cause is, make them pay you what
you’re worth.”
Heather Burns,Digital law specialist and web designer
“I write cross-platorm apps and made a mistake
with one o my irst projects where I wasn’t clear
on the amount o work required or each platorm.
Typically I’d expect to achieve 90% code share
between iOS and Android – but in this case it
was a ixed price or both – the client ended up
abandoning Android and as a result elt they owed
me hal. Because I wasn’t clear I lost a good amounto money – now I’m VERY clear.”
Jason Kneen, App developer
“There is no worse eeling than having
to continue on a project when you are
making a loss. Hourly pricing is vital in
my cost management.”
Aaron Wheeler, Developer
My biggest pricing mistake
“My biggest pricing mistake is allowing mysel to
be haggled down in price. You start the project
with a sense o resentment which is no way to
begin.”
Steve Folland, Video creator
https://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textphttps://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttp://www.tpdigital.co.uk/http://leftlogic.com/https://webdevlaw.uk/http://www.bouncingfish.com/http://www.stevefolland.com/http://www.stevefolland.com/http://www.bouncingfish.com/https://webdevlaw.uk/http://leftlogic.com/http://www.tpdigital.co.uk/https://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttps://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textp
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“In my irst ew jobs I was charging
next to nothing as I just wanted the
business. I agreed a ee or the ull job
with a client, but it worked out to be
less than hal o the minimum wage.”
Andrew McSparran,
Graphic and website designer
“I’ve made a air ew mistakes in the past,
biggest one has to be giving a ixed cost or a
WordPress build which took ten times longer
to build than estimated. As it was on a ixed-
cost project, my hands were tied. I’m not one
or giving up and bailing on a project mid-way
through so I saw it to the end and chalked it up
to experience. Moral o the story? Avoid ixed
costs.”
Anthony Killeen, Front-end developer“I made a mistake in giving a quote
without a ull understanding o my client’s
background, budget and expectations.
In my case the quote was too low and
my client was quite disappointed as hethought I wouldn’t work hard enough on his
project. I missed a really good opportunity.”
Barbara Marcantonio, UX/UI designer
“My biggest pricing mistake has been to
underestimate the effort needed to add a new
WordPress plugin to an existing WordPress
website that already had many custom plugins
and commercial plugins. The custom plugins
had not been developed very well and they
conlicted with my new plugin. I had committed
to making the delivery so I had to debug the
custom plugins as well as trying to make my
own plugin more robust.”
Clive Verrall, Developer
“Losing hours afer a project is done is a
mistake. Everyone wants to be nice to existing
clients in the hope o repeat business, but six
months later when a subordinate asks or a small change or update, it might only take
you ten minutes, but you get sucked into a
ew hours o back and orth than you can
never bill or.”
Brian Suda, Developer
“I once had a client ask me prices on the
phone and I panicked and made up both
a day rate and an hourly rate. Afer I got off
the phone I realised my ‘day rate’ equalled
only three hours based on my ‘hourly rate’.
Unsurprisingly, I’m still waiting or them to call
back.”
Michael William Lester, Designer and illustrator
“Earlier in my career not having the
conidence to ask or the value I provide. Not many people like talking
about money, but a good designer
makes their client more proitable.
What you ask o your client is a raction
o what you make them.
“It’s even more important to get pricing
right when you’re a reelancer so you
can pay yoursel or administration,
and when things are more quiet.”
Zach Inglis, Developer and designer
My biggest pricing mistake
“We’d love to hear reelancer experiences rom
all over the world. Email us at fieldguide@
freeagent.com and let us know your biggest
pricing mistake or a chance to appear in the
ebook.”
Danae Shell,
Editor, A Field Guide to Freelancer Finances
https://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textphttps://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttp://www.stagandstone.com/http://mrqwest.co.uk/http://grarighe.co.uk/http://www.cliveverrall.com/http://suda.co.uk/http://michaelwilliamlester.com/http://www.zachinglis.com/mailto:fieldguide%40freeagent.com?subject=mailto:fieldguide%40freeagent.com?subject=mailto:fieldguide%40freeagent.com?subject=mailto:fieldguide%40freeagent.com?subject=http://www.zachinglis.com/http://michaelwilliamlester.com/http://suda.co.uk/http://www.cliveverrall.com/http://grarighe.co.uk/http://mrqwest.co.uk/http://www.stagandstone.com/https://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttps://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textp
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My best pricing tip Field report: UK freelance designers and developers
Now you know the common mistakes to avoid, but you still need to ind the pricing sweet
spot where both you and the client are happy. Here’s a range o opinions rom reelancers
who have been there and done it all beore.
“Don’t charge or your time; charge
or your impact. As a consultant, eight
hours o my time can save a company
tens o thousands o pounds. I don’t
want to charge them or my eight
hours - I want to charge them or my
knowledge.”
Harry Roberts,
Consultant ront-end architect
“Make sure that you break your prices down
rather than just quoting a large round number.
Scope out projects thoroughly and put a
cost, and timescale, down or each stage.
Initiation, Planning, Design, Development,
Implementation...whatever it entails. Clients aremuch more likely to go or the option where they
are clear on what they’re getting or their money,
rather than a vague number. I there will be a lot
o project management involved don’t be scared
to include that in too.”
Jen Thomson,
Designer and ront-end developer“Look into the client and gauge their
company size and budget. I it’s a limited
company, you can ind its age and key
inancial statistics such as turnover and anydebt or ree online.”
Martin Bean,
Developer and consultant
Michael Merritt,
Virtual technology support
“When considering how I might charge clients
or my services, I decided to use a day rate,
rather than an hourly one. This is consistent
with what others in my ield were charging,and besides, the type o projects I work on
typically span a number o weeks. The day is
a clearer and easier unit o time to work with
in that context.”
Paul Lloyd,
Graphic designer and web developer
“Try packaging your services. Packages
contain a clearly deined group o tasks
to be completed each month. The client
pays you upront so there is no chasing
invoices and since they are paying or a
skill not your time, you no longer have to
track your hours.
“You can also create an à la carte list o
your services or those months the client
may need more o something than your
package(s) provides. Package, package, package!”
My best pricing tip
“I you love your client, charge what seems
air. I you know it’s going to be a nightmare,
charge what makes it worth it to you.”
Camilla Grey, Strategist
https://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textphttps://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttp://csswizardry.com/abouthttp://upcloseandpixelated.com/http://martinbean.co.uk/https://paulrobertlloyd.com/http://www.camillagrey.com/http://www.camillagrey.com/https://paulrobertlloyd.com/http://martinbean.co.uk/http://upcloseandpixelated.com/http://csswizardry.com/abouthttps://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttps://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textp
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“Pricing must be bespoke to the customer,
services (or goods) being provided and
situation. Factor in a premium or likely
difficulties dealing with clients, or waiting
or sign off or approval. Offer a discount
in return or prompt payment, or better
working conditions. Your best and worst
clients should not be paying the same rates.”
Steve Kirtley, Developer
“Transparent pricing - always break down
the cost o each o the products or services
your customer has bought rom you. Forwebsite design invoicing we break down the
services into graphic design, content writing,
website domain name, website hosting etc.
That way clients can see exactly what they
are paying and eel like they are getting a
good deal.”
Julie London, Designer“I have a spreadsheet or each project in which
I keep a track o the hours worked per day and
the eatures delivered. When I need to estimatethe price or a new job I add up the days
spent on similar projects rather than trying to
calculate the cost o each development detail.
For similar projects, I ind this approach quicker
and more accurate than getting too much into
the details.”
Clive Verrall, Developer
“My best pricing tip is to always ollow
your gut. It’s easy to estimate a project
based on hours you think you’d spend
but your gut knows better. I it eels like
a three week job but you’re only costing
or two, then more ofen than not, you’re
setting yoursel up or a mountain o
stress. A rule o thumb that some use
is to price a project, double it and then
add 10%.”
Anthony Killeen,
Front-end developer
“Use some kind o reelance pricing sofware/
proessional invoicing sofware. There are
many to choose rom online. DON’T undercut
yoursel. I you are producing great work,
charge airly or it. You went reelance or a
reason, don’t sell yoursel short. Remember,
the client you work or now may recommend
you to a new client and also state your prices,
i it’s a similar job you will eel obliged to
honour your previous pricing structure.”
Ronnie Pye,
Developer and designer
“Have a ‘get out o bed igure’ in your
head and don’t be araid to use it. I get
lots o enquiries and lots without proper
brie/specs – over time you get a gut
eel or how big a project could be – so
the best thing you can do to eliminate
time-wasters is go back with ‘This will
be a minimum o X’ – it will have the
immediate effect o either identiying
their budget (which you could then work
to) or eliminate them as time wasters.”
Jason Kneen, App Developer
My best pricing tip
“We’d love to hear reelancer experiences rom
all over the world. Email us at fieldguide@
freeagent.com and let us know your best pricing
tip or a chance to appear in the ebook.”
Danae Shell,Editor, A Field Guide to Freelancer Finances
https://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textphttps://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttp://www.thinkingdifferently.co.uk/http://tpdigital.co.uk/http://www.cliveverrall.com/http://mrqwest.co.uk/http://ronniepye.com/http://www.bouncingfish.com/mailto:fieldguide%40freeagent.com?subject=mailto:fieldguide%40freeagent.com?subject=mailto:fieldguide%40freeagent.com?subject=mailto:fieldguide%40freeagent.com?subject=http://www.bouncingfish.com/http://ronniepye.com/http://mrqwest.co.uk/http://www.cliveverrall.com/http://tpdigital.co.uk/http://www.thinkingdifferently.co.uk/https://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttps://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textp
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Building shelterOnce you’ve got a healthy amount o cash
coming in, you’ve got a roo over your head andcan start to relax. Unortunately, building up thatcash low isn’t always easy - some clients seem to
always pay late, and some just don’t pay at all.
In this section you’ll hear rom other reelancersabout their own techniques or getting paid, and
you’ll also ind practical tips or handlingworst-case scenarios.
https://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textphttps://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttps://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttps://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textp
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Creating a stormproof invoicingprocess Anna Debenham
I really hate asking or money. Maybe it’s because I’m British, or that I ind
it weird that people are paying me money or doing something I enjoy, but
sending and chasing up invoices is one o my least avourite things about
running a business.
Over the years, I’ve reined an invoicing process that helps protect me rom
non-payment and also reduces the awkward step between doing the work and getting
paid. Here’s how it works.
Before you start working
To weather a storm, you need to make sure that your shelter is solid, and this means doing
some preparation to make sure an unexpected gust o wind doesn’t blow everything down
and leave you shivering.
Creating a stormproof invoicing process
https://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textphttps://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttps://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttps://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textp
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Credit checks
It’s important to make sure that the organisations you rely on to pay your bills are… well…
going to be able to pay your bills. A quick way o assessing this is to check their credit
score. In the same way that you can check your own credit score, you can also check
another company’s and there are a ew different online services that do this. Matt Perkins’‘Credit control or reelancers’ gives lots more inormation on credits checks and setting
credit limits in advance.
Payment terms in your contract
To make sure that you and your client are on the same page beore work starts, you should
include a section in your contract (you do use one, right?) about payment terms. There are
a ew important things you probably want to speciy, such as:
• Whether you’re asking the client or any retainer or deposit beore you start working
• I your project isn’t ixed cost, whether you’re going to bill them or days booked thatthey don’t end up using
• How much you’re billing them over what period o time
• Whether the amount you’re billing is inclusive o VAT or sales tax
• What currency you’re billing them in (particularly important or overseas clients)
• What ormat o payment you accept (see note about payment methods)
• At what point you will send them an invoice
• What you agree to deliver beore and afer the inal invoice is paid (some reelancers
will only make the site live once inal payment has been made)
• How many days beore that invoice goes overdue• What you will do i that invoice goes overdue
It’s important that your client understands and properly acknowledges these terms
because money is so ofen the thing that causes disputes.
Note about payment methods:
A while ago, I had a couple o clients who insisted on paying with cheques. This is less
common now, but it was a real pain to queue at the bank and pay them in, and there was
also a higher ee on my account or paying in a cheque as opposed to a bank transer. My payment terms now insist on paying by bank transer. I I ever get a client who wants to pay
me a cheque again, I can put in the payment terms that I’ll have to charge them a small ee
to cover my costs o paying it in.
Payment terms and when to invoice
By deault, I want clients to pay me within seven days o receiving my invoice, but it’s quite
rare I can implement that; afer some negotiation, my payment terms ofen end up being
14 days, which is still better than the usual 30. Some larger companies have accounting
departments that insist on 30 days and they won’t budge on this, so you might need to
make a concession.
Creating a stormproof invoicing process
https://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textphttps://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttps://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttps://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textp
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This does make cash low more o an issue, so i you’re in this situation, you could ask to
invoice at the end o every week rather than every month so you have a more consistent
low o income. Invoicing (and thus getting paid) regularly will balance out those nerve-
wracking east and amine spikes in your income.
Writing the invoice
First, it’s good to double check that your invoice has the ollowing important inormation:
• The word “invoice” clearly displayed
• Your company or trading name, with your address and contact details
• The name and address o the company that you’re invoicing
• A unique invoice reerence
• A summary o the work you’ve done
• The date(s) that you provided the work• The amounts you’re charging or each piece o work
• The VAT or sales tax amount you’re charging (i applicable)
• The total amount due
Here are some other tips:
Payment details: Don’t orget to put your payment details on your invoice so your client
can pay you straight away - this includes the name o your bank, your account number
and sort code i you’re accepting bank transer payments, or your PayPal details i you’re
using that.
Payment terms: It’s also important to add the due date so your client can see when the
payment needs to be made by.
Summary of work: Your summary should be really clear so the client knows exactly what
they’re paying or. In FreeAgent, I hook my invoices up to my timesheets so I can show
details o what I did each day I was working on the project.
Project references: Some clients ask you to include a PO (purchase order) number or the
project owner’s name so that their accounting department can see what it applies to.
International payments: Since working or clients in other countries, I’ve also added
my BIC (also known as SWIFT or SWIFTBIC) and IBAN. These are needed or me to make
international payments. Even i you don’t currently have international clients, it’s good to
ask your bank or these details now so you have them to hand i you need them.
Invoice references: Invoice reerences need to be sequential, but i you’re just starting out,
it may look unproessional or your irst invoice to be numbered 001. One option is to start
Creating a stormproof invoicing process
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with a random number to make it look like you’ve been on the block or longer, or you can
give each client their own reerence (Widgets Incorporated would be WI001, WI002, and
Acme Corp would be AC001, AC002).
Sending the invoiceI used to hand craf an email to my client every time I sent an invoice, but that would ofen
put me off sending the invoice in the irst place because I couldn’t think o anything to say
other than a long, awkward version o “Uh, hi! Here’s my invoice. Please pay it!”. So having
a boring but to-the-point template email that accompanies my invoice makes the process
a lot easier.
That said, I do customise these messages a little depending on whether I’m sending them
directly to the client, or to their billing department (I assume that the billing department
doesn’t really care that I had a wonderul time working on the project and that I hope to
work with them again soon).
I I’m sending an invoice to a billing department at the end o every week, I add the project
name and reerence in the subject so it’s easy to see what it reers to, and just add a short
note explaining what period the work I’m billing is or. This hopeully makes their jobs
easier as they don’t have to chase up the project owner or more details.
Subject: [project_name], invoice [reerence]
Hi,I’ve attached my invoice or the work I’ve done on [project_name] in the week
ending [invoice_date].
Kind regards,
Anna
It’s as simple as that. I I’m sending my invoice directly to the client I’ve been working with,
I tend to be more inormal. And i it’s a one-off piece o consultancy and I enjoyed working
with them, I ask up ront or more work.
Subject: invoice [reerence]
Hi [contact_irst_name],
I’ve attached an invoice or the [project_name] work I did with you. It was a really
un project and I hope you’ll ask me back in a couple o months to review what
you’ve been working on.
Kind regards,
Anna
Creating a stormproof invoicing process
https://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textphttps://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttps://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttps://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textp
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Chasing overdue invoices
I an invoice goes overdue, I send a short email a couple o days later to prompt the client
(avoid sending it last thing on a Friday, it will inevitably get lost). I like to say “this is an
automated reminder” even i I send it manually, so it looks less like I’m personally chasing
them up, rather that my system is.
Subject: Invoice reminder: [reerence]
This is an automated reminder to let you know that invoice [reerence], sent
[invoice_date], is now overdue. I you’ve already paid this invoice, please let me
know as there may have been a problem with the transer.
I it’s still overdue a couple o days afer that, I send another email:
Subject: Invoice [reerence] overdue
Hi [contact_irst_name],
I’ve just been going through my accounts and I noticed that invoice [reerence] is
showing up as overdue. Could you have a look into this? I the invoice is still unpaid
in 3 days, my system will start charging the base rate o interest on top o the total
amount due.
Let me know i it’s already been paid so I can chase it up with my bank.
Kind regards,
Anna
Again, I’m reerencing “my system”. I don’t want to be too personal, not yet. Usually it’s just
someone being a bit orgetul, or there’s some paperwork that needs signing off irst, and a
gentle prod is all that’s needed.
Chase early, chase often
I send my chasing emails once the invoice is only a couple o days overdue. I’ve ound that
I’ve had the biggest problems with payment when I’ve only started chasing up an invoice
several weeks afer it’s gone overdue, so I recommend you chase up early and ofen.
When they don’t pay
I’ve been very lucky with getting paid on time and I’ve only had a couple o times where an
invoice has gone signiicantly overdue, with one that I’ve had to write off. In one case, I was
on a long-term contract and I told the client I would suspend working or them until all my
payments were up to date, which was enough to get all the outstanding payments made.
I things really turn sour, you can hire a mediator who will attempt to settle a dispute out o
court, or you may opt to take your client straight to a small claims court – sometimes justthe threat o doing this is enough to settle a bill. Fortunately I’ve never had to do this with
Creating a stormproof invoicing process
https://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textphttps://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttps://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttps://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textp
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a client, but it’s an option i multiple reminders are being ignored and you’re not keen to
maintain a positive relationship with them.
Another alternative is to sell the debt. This means that a debt collection agency will
attempt to collect the money rom the client themselves, such as by sending in bailiffs.This is a handy option to know about i you’re desperate or the money.
I the overdue bill is small enough, or you know there’s very little chance you’ll be able to
recover the money (such as i the client goes bankrupt), you may decide to cut your losses
and write off the debt. This means you accept that the payment is never going to be made,
and it gets recorded in your business accounts as an expense.
The ideal situation is to not have an invoice go overdue or any work you’ve already done.
Some reelancers insist on being paid upront or all the work they do. They will invoice theclient every week or the ollowing week’s work, and i an invoice goes unpaid, they don’t
do the work. The client is effectively paying to book in that person’s time.
It’s not always possible to negotiate this or the entirety o a project, but it’s not unusual
to ask or a deposit beore starting a new project, especially i you’re paying expenses like
travel or accommodation upront. Afer all, it’s one thing i a client doesn’t pay on time or
your services, it’s another i it’s or expenses.
Be proactive and get into a routine
I think that the most important part o invoicing is to set up a process that helps you getahead o any problems that you may weather down the line. In particular, a good weekly
invoicing routine to prevent potential cash low problems and a ew pre-written emails
that you can conidently use to chase payment can make a big difference to helping you
get paid.
Anna Debenham is a reelance ront-end developer living and working in London. She works with
a range o clients to help build ront-end prototypes, style guides and websites. In 2013, she was
awarded net magazine’s Young Developer o the Year.
Creating a stormproof invoicing process
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Automatic invoicingBilling a client or your time is easy - just import your timeslips into an invoice, or
even set up recurring invoices that import any unbilled time and send themselvesautomatically. Once the invoice is sent, you can create your own automated reminder
schedule to make sure you get paid.
Know who owes you whatYour invoice timeline instantly shows the status
o recent invoices and lets you see what’s been
paid, what’s due and what’s overdue.
Get paid fasterWant to get paid online? No problem. Your clients can view invoices
online and pay by credit/debit card, Direct Debit or PayPal.
Ready to stormproofyour invoices?Put Anna’s advice into action with FreeAgent’s
invoice sofware or reelancers.
In FreeAgent you can design your own invoice or
choose rom our templates, then set up automated
reminders to nudge any late-paying clients.
Customisable invoice templatesWith our gallery o great-looking invoice templates, you can ind
a style that matches your brand. You can customise invoices or
even design your own with CSS.
“FreeAgent’s automated invoice reminders have made invoicing totally hassle-free for me”
Anna Debenham, @anna_debenham
Try FreeAgent or ree
Try FreeAgent or ree
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My invoicing terms Field report: UK freelance designers and developers
How do other reelancers invoice their customers and time their payments? Here’s a
selection o invoicing terms used by other reelancers.
“I invoice private clients every week
and expect to receive payment within a
week. I work or many clients at a time
and so i one client is slow to pay then
I avour the work or my other clients
while waiting or the payment.”
Clive Verrall, Developer
“Regarding invoicing terms, I have different setups
or different clients but it’s usually 10% deposit,
50% o the balance at midpoint and inal balance
on completion. Payment terms are strictly seven
days rom invoice and generally, I don’t havemany issues along the way.
“I a project is a more long-term thing, then I
stagger payment requests. There’s nothing worse
than entering into a six-month build and invoicing
10% at the start and then nothing or three
months.”
Anthony Killeen, Front-end developer
“Depending on the scale and stages
o the project usually 25% initiation,
25% on design sign off, 25% on either
prototype or beta stage build then
the inal 25% on completion. I ask or
payment afer 14 days, sometimes I get
that, sometimes it’s a month. Depends
on the client.”
Jen Thomson,
Designer and ront-end developer
“For ixed-price projects, I’ll request a deposit. The
amount depends on the length o the project. For
example, it would be hard to convince a client to
pay 50% upront or a project estimated to take
six months. For consulting and contracting where
I’m billing a pre-agreed day or week rate then I’ll
invoice weekly. All invoices are due upon receipt.”
Martin Bean, Developer and consultant“My invoicing term is payment upon
milestones. I set out where the projectwill be afer speciied dates and then
demand a percentage o payment
beore moving on.”
Aaron Wheeler, Developer
“I usually ask or a 35% non-reundable deposit
and I don’t start working until that money is in my
account. I then get a mid-project payment and a
inal payment right beore the release. Make sure
the last payment happens beore you give your
clients all the source iles or set their website live!”
Barbara Marcantonio, UX/UI designer
My invoicing terms
https://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textphttps://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttp://www.cliveverrall.com/http://mrqwest.co.uk/http://upcloseandpixelated.com/http://martinbean.co.uk/http://grarighe.co.uk/http://grarighe.co.uk/http://martinbean.co.uk/http://upcloseandpixelated.com/http://mrqwest.co.uk/http://www.cliveverrall.com/https://twitter.com/intent/tweet?text=Download%20a%20free%20copy%20of%20%40freeagent%27s%20ebook%20A%20Field%20Guide%20to%20Freelancer%20Finances%20for%20%23webdesign%20%26%20%23devs%20http%3A%2F%2Fow.ly%2FV4qKG%20%23myfieldguide&source=webclienthttps://www.freeagent.com/fieldguide/try/?utm_campaign=web&utm_source=freeagent&utm_medium=fieldguide_uni_ebook&utm_term=fieldguide_freetrialfooter&utm_content=uni_v1_chapterall_articleall_footer_textp
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“Generally my payment terms are 50%
beore project commences and 50%
upon completion but beore ‘go live’.
Larger projects would have payment
milestones whereby I complete a set
project task by a certain date, the client
then pays that scheduled amount
beore the next step commences.”
Tony Pollard, Developer
“When I draw an invoice up - depending on the
work I usually get a 5-10% deposit, do the work
and keep the client up-to-date throughout the
project with where their money is going. I never
send over any high resolution images, PDFs or
documents without being watermarked – just in
case.
“Keep timesheets. You never know, the client
may ask, and it keeps you right. I have my terms
and conditions on the back – these are really
important! They keep you protected. Research
these and ask or help rom other proessionals.”
Andrew McSparran,
Graphic and website designer
“My invoicing terms depend on the
relationship with the client. Some I take
50% payment beore I begin, some
I only invoice on completion. This is
the good thing about reelance job
sites (like PeoplePerHour/Upwork etc)
where you can request 100% deposit
to be held in Escrow and you’re then
paid within seven days o completion.
Heaven.”
Steve Folland, Video creator
“I seldom take a deposit because my work is such
short engagements (a day or two at a time) that
I don’t have the kind o cash low issues that a
deposit helps with (i.e. a long period o working
without payment). My terms are 28 days, and I
always invoice the client afer the work has beencarried out in order to ensure they’re paying or
something they’re happy with.”
Harry Roberts,
Front-end architect and consultant
My invoicing terms
“We’d love to hear reelancer
experiences rom all over the world.
Email us at [email protected]
and let us know your invoicing terms
or a chance to appear in the ebook”.
Danae Shell,
Editor, A Field Guide to Freelancer Fi