How To Structure Your Invoicing To Avoid Delayed Payments From Massive Brands

You did it. You secured a project with a massive brand that you love. However, with a brand that big, there is a larger chance that you’ll get lost in the sea of freelancers. It’s important not to let your invoice fall through the cracks. After all, you did the work, so you should be paid in a timely fashion. Here’s how to structure your invoice to avoid a delayed payment.

An important tip to help foolproof your invoicing is to agree on the exact terms and conditions before invoicing. Decide how many net days are allowed for processing the invoice. These are usually in 30, 45, 60, or 90 days. Additionally, agree on whether there are any late-payment penalties. Is there a kill-fee? Will there be milestone payments or one lump sum? These are all things that should be known by both parties before sending an invoice so that there aren’t any corrections to be made later.

If you are being paid based on project milestones, make sure that you are set to the dates and deliverables in advance. Typically, this includes a deposit at the start, a midpoint payment, and a final delivery payment. This can be stretched out over a longer period of time as is, or you can add more payments. Regardless, it should be agreed upon by you, the seller, and the buyer.

Also, before the process continues, you should make sure you know who to contact for invoice procedures and how the company receives them. Some brands have a vendor portal you may need to sign up for. If so, keep your username and password in a secure place that is easy to access. Other big brands may have an email to send invoices separate from those who have collaborated with you on your deliverables. It’s also likely you may have to invoice them using your own process.

If you have to create your own invoice. There are components that must be included in your invoice to avoid delaying your payment. All invoices should include:

• The invoice send date.
• An invoice number. Each invoice sent to the buyer should have a new, unique Invoice number. It’s a way of keeping track of which invoice you are referring to in case you work with the brand more than once.
• Due date. This is dependent on the net terms you’ve previously discussed.
• Your contact information. Your business name and address. If you are a sole proprietor, this would likely be your name and address. According to QuickBooks, this can be a PO box as long as the PO box is registered as your business entity’s address during its formal filing.
• The recipient’s name and address.
• Vendor ID (if applicable)
• An itemized list of the deliverables. Each item should have a description that is thorough enough to determine what the invoice is when looking back at it months or years in the future. The items should also include the price of the service and the date the service was provided.
• The subtotal. This includes any necessary discounts. All discounts should also be marked on your invoice, including what percentage and/or dollar amount will be taken off. This is also where you would denote any tax charges or late fees. Be sure to label tax charges as the correct type of tax, and label late fees should include the number of days late.

Make sure that all of this information is correct before sending your invoice.