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Thinking about working freelance, or have you already jumped in? You’re in good company. Freelancing is booming in Australia, ranked among the top four fastest-growing freelancing countries based on yearly revenue growth (an impressive 86%). Australia is also the fifth-largest source of freelancing clients globally, contributing to 7% of the global market.
It’s an exciting time to be freelancing, especially when you’re getting paid for the work you love, and the key to making that happen is invoicing. Having a well-structured invoicing process helps you avoid late or missed payments, keep cash flowing in and make you look professional to your clients. More than just a request for payment, it’s an opportunity to make a strong impression and establish your credibility, while contributing to the stability of your freelance business.
Essential components of a freelance invoice
A professional invoice has all the necessary details to ensure your clients know exactly what they’re paying for, when they need to pay and how they can pay. Here’s a checklist of key information that should be included in every freelance invoice.
- Your name and business address: This makes it easier for clients to contact you and ensures your invoice is correctly documented.
- Client’s name and contact info: You want to know exactly who you’re invoicing, so this avoids any mix-ups.
- Invoice date and unique invoice number: These are essential for keeping your records organised and ensuring payments are tracked correctly.
- Description of services and itemised costs: Be clear about what you’ve done and how much it costs. This level of detail helps clients understand exactly what they’re paying for and shows the value of your work.
- Payment terms, due date and preferred payment methods: Specifying these ensures everyone knows when and how you expect payment.
Including all of these elements helps create a clear, professional invoice that not only makes it easier for your clients to pay you but also gives your business a more established and trustworthy feel. If you’re just starting out as a new business owner (or thinking about it), take a deeper dive into the ins and outs of invoicing.
Freelancer invoice templates and samples
When you’re busy freelancing, the last thing you want to do is spend hours designing an invoice from scratch. This is where invoice templates come in handy. They’re an easy way to help you create professional-looking invoices in a fraction of the time, leaving you with more energy to dedicate to other things – like delivering great work for your clients.
Using a freelance invoice template is a huge time-saver. It lets you skip the design and get straight to the details. Plus, once you’ve set up your template, you can reuse it every time, which means no more designing invoices from scratch. Templates also help ensure that you don’t miss any crucial information, keeping everything organised and consistent.
Most invoicing tools offer templates that you can easily customise with your own colours, logo or branding, which helps make your invoices look more professional and cohesive with your overall business identity.
There are plenty of online template options to choose from. Square has a range of easy-to-use, customisable templates that you can send directly to clients. Platforms like Canva also have pre-designed templates that can be personalised to match your brand, while tools like Wave and FreshBooks offer templates that come with additional accounting features to help you manage your finances.
If you’re new to invoicing, a quick online search for freelance invoice examples or samples in your industry can also give you ideas and inspiration on what other freelancers typically include and how they lay it out.
How to make an invoice for freelance work in Australia
Working down under? Look for a freelance invoice template Australian clients will appreciate. One designed with local needs in mind will include details like specifying Australian dollars, using the local address format and including your Australian Business Number (ABN) if you’re registered. If you charge Goods and Services Tax (GST), the invoice should clearly include the words ‘Tax Invoice’ and show the GST amount as a separate line item.
Setting clear payment expectations
It’s crucial to set clear payment expectations right from the start, which can save you a lot of headaches later on. This means being upfront about your rates, payment methods and deadlines, so everyone is on the same page from the get-go.
When expectations are outlined at the beginning of a project, you’re less likely to face misunderstandings or delays. Discussing these details ensures that both you and your client are aligned and reduces the chance of awkward situations down the line.
Having these terms written down in both the contract and the invoice ensures that your payment expectations are clear and legally backed up, offering extra protection for both you and your client. Ultimately, setting clear expectations helps you get paid on time, which is essential for managing your business and finances.
Reiterate agreed-upon terms and conditions
Restating your agreed-upon payment terms on every invoice is a small but important step that ensures transparency and avoids misunderstandings. A few things to mention in your terms include:
- Payment deadlines: Make sure you’re clear on when the payment is due (e.g. within 30 days of the invoice date).
- Late fees: If you charge a fee for late payments, state this upfront so clients understand the consequences of delayed payment.
- Preferred payment methods: Specify how you prefer to receive payment.
Being consistent with your invoicing terms also reinforces your professionalism. Whether you’re invoicing for a large project or a smaller job, keeping your payment terms clear and consistent shows that you take your business seriously.
Tips for ensuring timely payments
Getting paid on time is key to keeping your freelance business running smoothly. Luckily, there are a few strategies you can use to help keep the payments rolling in. For starters, you can use invoicing tools that automate the process. Automated invoicing systems can send out your invoices without any manual effort, which frees you up to concentrate on your actual work.
Whether through a quick email or your invoicing software, it’s a good idea to remind clients a few days before their payment is due. Another great way to encourage timely payments is to use automated payment reminders. These gentle nudges can be set up within your invoicing software to automatically alert clients when payments are due or overdue. It takes the pressure off you and helps keep your payments on track.
Offering multiple payment options can make it easier for clients to pay you on time. The more convenient you make it for your clients, the more likely they are to pay promptly. For instance, Square allows you to accept payments by payment link, credit or debit card, Apple Pay, Google Pay and even Afterpay. This variety of options ensures your clients can pay in the way that works best for them.
Requesting a deposit
Asking for a deposit at the start of a project can feel a little intimidating, but it’s one of the smartest ways to protect yourself. It shows that you value your work and expect the same from your clients. A deposit not only confirms your client’s commitment but also gives you peace of mind – and a boost to your cash flow – before the project kicks off. It’s also a safety net, ensuring you’re not left empty-handed if a client cancels or doesn’t follow through.
How much should you ask for? Most freelancers often request a deposit between 25% and 50% of the total project cost upfront. This amount can vary based on the size and complexity of the project, but requesting at least 25% upfront is usually a safe starting point to ensure that both parties are committed.
If you’re unsure how to price your services, check out our guide on how much to charge as a freelancer to help you set a fair and competitive rate for your skills.
Staying consistent with invoicing routines
Developing a consistent invoicing routine helps keep your business finances organised and ensure payments come in on time. Whether you choose to invoice weekly, fortnightly or monthly, sticking to a regular schedule builds trust with your clients by creating clear expectations. When clients know exactly when to expect your invoices, they’re more likely to respect your terms and deadlines, and prioritise your payments.
A steady invoicing schedule also makes your cash flow more predictable. When you have a set invoicing routine, you can plan your finances better, knowing when income will arrive.
How Square invoices can help
Using an invoice template freelancers trust and rely on will save you time and ensure your invoices look polished. Whether you’re at your desk or on the go, you can create and send professional invoices in minutes, for free, with Square Invoices. It works from any device, allowing you to manage your invoicing no matter where you are. You can also set up automatic payment reminders, which means you won’t have to chase clients down for payments.
If you have ongoing clients, you can set up recurring billing. This is especially useful for retainer clients or long-term projects where the billing is consistent, saving you time and effort on repetitive billing tasks. Plus, Square helps you track your income and expenses, so you can keep all of your financial data in one place.
The ability to customise templates also lets you personalise your invoices with your logo, colours and branding to maintain a professional image. This adds a professional touch to every invoice you send. Flexible invoicing options make it easy to adapt templates to different needs, whether you’re sending a quick one-off invoice or billing hourly for ongoing work. And for larger projects, you can schedule multiple payments, which break down large payments into smaller, manageable stages while ensuring you get paid as the work progresses – all within a single invoice.
By using a templated invoice for freelance work, communicating clear payment expectations and automating time-consuming tasks, you can make sure that getting paid is as easy as possible. With the right processes in place, you can avoid late payments, cut down on admin and free up time to focus more on the work you enjoy doing.
