Invoicing & Payment Guide

Getting paid on time is one of the biggest challenges for freelancers and small businesses. A professional invoicing system with clear terms and automated follow-ups can dramatically improve your cash flow.

Creating Professional Invoices

Every invoice should include: your business name/address/EIN, client name and address, unique invoice number, invoice date and payment due date, detailed description of services or products, hourly rate or fixed price, quantity, total amount due, payment methods accepted, late payment terms, and a thank-you note.

Invoicing Software

• Free: Wave (unlimited invoices, 2.9% + $0.30 per credit card payment), Zoho Invoice (free for 1 user), Invoice Ninja (free tier).
• Paid: FreshBooks ($17-55/month), Xero ($13-45/month), QuickBooks Online ($30-200/month), HoneyBook ($39/month, built for creative pros).
• Payment-specific: Stripe Invoicing (2.9% + $0.30, integrates with payment links), Square Invoices (2.6% + $0.10).

Payment Terms

Standard: Net-30 (due in 30 days). Better: Net-15 (faster cash flow). Best: Due on receipt or 50% deposit upfront. For ongoing work: Invoice weekly or bi-weekly. Late payment: 1.5% monthly interest (18% APR) — common and legal, but disclose in your contract.

Getting Paid Faster

• Offer multiple payment methods (ACH is cheapest for you, credit cards convenient for clients).
• Enable credit card payments — clients pay faster with credit (even if you eat the 2.9% fee).
• Automate invoice reminders at 7 days before due, on due date, and every 7 days after.
• Offer a small discount for early payment (e.g., "2/10 Net-30" = 2% off if paid within 10 days).
• Require retainer or deposit for new clients (25-50% upfront).

International Payments

• Wise: Low FX fees (0.4-0.6%), mid-market exchange rates, multi-currency accounts.
• PayPal: 4.4% + $0.30 for international (conversion spread: 3-4%).
• Stripe: 2.9% + $0.30 + 1% for currency conversion.
• TransferWise now Wise Business: Better for recurring international invoices.
• Traditional wire: $25-50 per transfer. Avoid for small invoices.

Accounts Receivable Management

• Track aging receivables: 0-30 days, 31-60, 61-90, 90+.
• Follow up on day 1 overdue with a polite reminder.
• Day 7: Send a second notice with a phone call or direct message.
• Day 30: Send a final notice, stop work until paid.
• Day 60: Send via certified mail, consider a collections agency or small claims court.
• Write off uncollectable invoices as bad debt on Schedule C.