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Be responsible about sending invoices
Do you work for yourself? If you do any kind of paid work outside of a workplace where you earn a salary or wage, the answer is "yes."
Whatever shape your self-employment takes, there's a pretty good chance that you dislike at least one part of the process: invoicing your customers. For reasons that may include a dislike of paperwork or a distaste for handling money, the self-employed are notoriously bad at invoicing for their work.
You could think of this as a bad habit that harms no one, but you'd be wrong. Late invoices can create confusion for the company and delays in payment. On the other hand, timely, accurate invoices create and sustain goodwill.
If you're doing some work on your own, develop an invoice form and process. The following are some tips.
1. Starting at the top, be sure that your invoice includes the date, an invoice number, a project number (if there is one) and a purchase order number (if the customer has provided one). The invoice number is generated on your end and should be used only once. This will help both sides track this specific document.
The project number also is generated by you and will remain constant throughout any invoices you send for this particular project. Some vendors use a customer number or account number instead; others skip this altogether. The purchase order number, or PO, comes from the client and will be used in that office to assign the costs for the project. Not all your customers will use POs, but you always should ask.
2. Is this obvious? Put your contact information on the page! A surprising number of contractors don't.
3. List the services provided and their attendant costs. This is a key feature to most customers, as they want to see the cost of each thing, not just a grand total.
4. Include sales tax as required. Not certain if tax is due for your kind of work? Ignorance will be no protection. Go to your state's Web site and find out.
5. Provide your federal and state tax-identification numbers. If you have not registered for these, you will need to provide your Social Security number instead, at least if your customer is a company. Most companies won't pay an invoice without this information, so not supplying it will hold up your check.
6. If you require payment immediately, write "due upon receipt." You also can offer a discount for payment in 10 or 15 days. If you specify no terms, expect payment in 30 days, as that is standard practice. You also might add a line to assess interest for payment after 30 days.
7. Consider your customer's convenience and provide a self-addressed, stamped envelope. This is considerate, and studies show a sharp increase in on-time payments when this is done.
8. Be timely! Send your invoices at the beginning of each month or at the end of each short project. If you hesitate, think about the last time you ate in a restaurant and then waited ages for the check. Put your customer in your shoes, and you'll know what to do.
-- Amy Lindgren owns Prototype Career Service, a career consulting firm in St. Paul, Minn. She can be reached at alindgren@prototypecareerservice. com or at 1071 W. Seventh St., St. Paul, MN 55102.
