As a freelancer, it might be overwhelming having to wear many hats just to keep your business alive. As such, it can be hard to know when to turn your attention to invoicing because you’re probably focused on finishing up with your clients’ work in between a million other tasks you need to attend to as you run your business.
However, if you don’t get paid promptly, you can’t run a profitable business, no matter how valuable your services are. While sending out invoices is critical for freelancers, it also takes up a lot of time. And when you’re billing by the hour for your work, that means less money in your pocket.
That’s where invoicing software comes in.
Let’s take a look at some of the ways invoicing software can be of great benefit to freelancers.
1. Streamlining Work Processes
Drafting an invoice for your client can be tedious and time-consuming. You have to include the client’s information, your information, and invoice details. This includes the job you did, the amount due, when it is due, and more.
When you use an invoicing program to generate invoices, the software should input all this information automatically so that all you will need to do is enter the client’s information and details about the projects you did.
Overall, this feature streamlines your work process so that it saves you the time you can otherwise dedicate to other tasks.
2. Sending Multiple Invoices Simultaneously
One of the major benefits of invoicing software is that as a freelancer with a number of clients, you are able to send multiple invoices simultaneously. You will also be able to know which of your invoices were opened and which were not.
3. Recording Invoice History
Invoicing software allows you to keep track of all your previous invoice history and at the same time, receive reminders whenever you need to send an invoice to any client. All in all, this feature makes it easier for you to keep track of all your customers and their transactions.
4. Keep Track of Refunds and Credits
Some clients may ask for refunds or credits for certain transactions. Invoicing software will make it easy for you to record these transactions and send them out promptly when required by your customer.
5. Help With Tax Processing
Paying taxes is a significant part of being a freelancer even though you’re not fully employed. If you don’t pay your taxes in time, then the IRS will penalize you for that and you’ll have to pay fines or find yourself in some legal complications.
For example, If non-employees or freelancers are working with/for a company and they have paid them $600 or more during the tax year, then they need to file for Form 1099 – NEC.
Since the software stores all the billing and payment information, it is easier to retrieve the data whenever you need it for tax processing thus helping you avoid trouble with the taxman.
The Bottom Line
Freelancing isn’t like having a regular job where you can simply refer to your payroll department for all your payment questions and issues. As a freelancer, you will be responsible for your own invoicing and payment collection.
This is why freelancers need the right tools to help them be more productive such as Invoicing software.
Invoicing software for freelancers can help you take care of some of the biggest challenges freelancers face. You can use it and make managing your finances easier so that you get more time to focus on what matters the most – work for your clients!
