4 September 2020

Freelance: how to invoice its customers?

When starting his first assignment, every freelancer wonders how to bill as a freelancer. Invoicing is essential to carry out his project and develop his business. This article gives some essential information on how to invoice your clients in accordance with standards.

Choosing the right invoicing method

The invoice is a legal act that allows both to protect its interests in the event of possible disputes and to establish its performance. There are two possible ways of invoicing clients as freelancers: invoicing on a time-spent basis and invoicing on a fixed-price basis.

As far as the first option is concerned, it is a question of calculating his mission according to his duration, and therefore, of selling his working time. When the self-employed worker has reached the threshold of the invoice, he can immediately notify his prospect. Note that this first method is perfectly suited to freelancers who do not master all the services requested by the client.

As for the fixed-price invoice, it is intended for any freelancer capable of successfully completing all the tasks assigned to him. It is especially suitable for those who perform the same services on a daily basis. The fixed-price method of invoicing allows you to consider all the time spent on the work and to invoice your client for a large amount. The calculation is quite simple.

Simply multiply the daily rate by the number of hours worked. Nevertheless, this method presents enormous risks. In case of delay, the worker becomes a loser. The ideal is therefore to estimate the time needed to complete the project before giving the client his rate. It is advisable to consult a specialized site to know how to invoice as a freelancer.

To respect the standards in force

Working as a freelancer requires compliance with certain billing rules. First of all, it is advisable to formalize the service with the client. The document must include a few mandatory information, otherwise a penalty of up to 75,000$ may be imposed. Above all, it must contain the date of issue of the invoice and of the service.

It must also include the invoice number as well as the customer’s name and address. His address and identity or that of his company must not be omitted. Of course, the legal form of the company, followed by the amount of capital, should also be provided. Since invoices are documents issued by a legal structure, it is necessary to mention everything concerning VAT and the total amount to be paid excluding taxes (HT) and including taxes.

In view of all these formalities, one must therefore be vigilant about the mandatory mentions to be included in one’s invoices. For any individual who has just created his own project, it would be best to be accompanied. This will avoid tax sanctions and losses. In addition, service providers offering a support service help to manage the accounting of his company: customer search, financial plan, etc. This is a real asset to launch your business.