An bill is an item-wise list of goods or services provided by a person, along with the amounts due for each of these goods and services. It besides provides other information relating to the transaction undertake, such as the taxes levied, the date of the transaction, the address of the supplier and recipient, the tax identification numbers, etc .
Who is a freelancer?
A mercenary is an person who does not work for a detail company as an employee but picks up multiple assignments for versatile different companies or individuals. For a freelancer, raising invoices is an significant business process as it not just determines the come to be paid but besides ensures that the payments are received on time. It besides helps eliminate any confusion or misconstrue between the freelance and the node.
What are the contents of an invoice raised by a freelancer?
The following details should decidedly be included in a freelance ’ south bill :
Every invoice should be appropriately titled with the words ‘Invoice’ or ‘Tax Invoice’ or any such similar title, as applicable.
- Name and logo
The name of the freelancer or his company, and the logo, if available, should appear on the top of the invoice. This way, anyone reading the invoice will know who raised it at first glance.
- Contact details
The contact details, such as the telephone number, email address, postal address, etc., should appear below the freelancer’s name/company name so that the recipient can contact the freelancer in case of any discrepancies. If the freelancer has a tax identification number like a GSTIN, the same should be mentioned here.
- Client’s name and client’s information
Similar to the freelancer’s name and contact details, the client’s name and relevant information such as his address, contact number and email address, GSTIN, etc., needs to be mentioned too.
- Invoice date
The invoice date is the date the invoice is raised on. This is important to mention as sometimes the payment terms in the freelancer contract, if available, is based on the invoice date. For example, ‘Payment to be made within 30 days post invoice date’.
- Invoice number
The invoice number is the serial number of that invoice and plays an important role in referencing that invoice, either by the freelancer or the recipient of his services. A helpful tip here is to include the year and month in which the invoice is raised while numbering invoices. For example, an invoice raised in May 2021 can have an invoice number like 12345/05/2021.
- List of services with the rate charged (before tax)
Next comes the list of services rendered by the freelancer. If the freelancer is a writer, it can be the list of topics written along with the word count and rate per word. If the freelancer is a graphic designer, it can be the list of creative projects undertaken along with the exact work done or the number of hours put in and the rate per project or per hour worked. The idea is to be specific here so that clients know exactly what they’re paying for.
- Tax rate and amount, if applicable
If the freelancer has a GST registration and is liable to pay tax on the services provided, then the tax rate and amount of tax due against each service should be separately mentioned. If all the services fall under the same tax bracket and service code, then just the applicable rate can be mentioned at the end and calculated on the gross value of services rendered, along with the amount of tax. A bifurcation should be given between taxes as IGST, CGST and SGST due to the Central and state governments.
Please note that if the freelancer is registered under the Composition scheme, he will not be eligible to issue a tax invoice as there is no tax component. In such a case, he needs to print the words ‘Composition taxable person’ at the top of the bill of supply that he issues.
- Total amount due
This will be the sum total of the hours/assignments billed multiplied by the rate per unit, along with the GST charged, if applicable.
- Payment details
It is necessary to mention the bank account details or other such details determining where the payment is to be transferred to. If the mode of payment is cash, then the same needs to be mentioned. It would be wise to discuss the mode of payment beforehand with the client rather than directly print it on the invoice.
Every invoice should be signed by the person issuing it. Hence, an invoice should have a designated space at the bottom for the freelancer to put his signature and the company seal, if any.
How should the invoice be raised?
It is always advisable to have a mercenary bill printed in black and white and not have the amounts orally communicated to the client so that no dispute arises at a late date with regard to work done or the payment due. once raised, the invoice should be mailed to the postal address of the client. If that is not feasible, then sending the invoice via electronic mail is an alternate option.
Though, in contemporary transactions, emailing invoices seems to be the more popular method acting. Sending invoices via mail besides helps in cases where the customer claims to have lost the newspaper bill. note that the bill raised and signed can always be used as proof in case of payment delays.
When should the invoice be sent?
Since a freelancer normally works on particular assignments and does not have long-standing employment with the company, it is best that the invoice is raised and sent to the customer angstrom soon as the function is completed. This is when the assignment is fresh on the node ’ south mind, and it is easier to follow up for payments adenine well. In the lawsuit of long-run projects, then billings on a weekly, monthly or quarterly basis can be done, and the invoices raised and sent accordingly.
How to invoice as a freelance designer?
The procedure of raising an bill as a freelancer graphic designer is very like to that of any freelance. The scope of work and payment conditions are to be decided on advance. The invoice should contain all the details mentioned above.
The merely deviation when it comes to freelancer designers is the cost of raw materials that goes into a particular undertaking. Hence, it is always well for a freelance architect to take an promote payment for the visualize before the work begins, particularly when it is a new project or sign. A distinctive boost is about 25 % -50 % of the total stick out value. This will safeguard the interior designer from any cancellations that might occur from the node ’ mho end at a late date.
A mercenary architect or graphic motion architect may have to interact with clients back and forth before the finalization of the project takes put. only after that, the bill is raised. Further, the payment terms normally range between 45 days to two months. sometimes, there are besides agreements between the freelance architect and the client-company. One of the terms may include extra or extra charges for more than three revisions of the design copy or television produced.
Most of the designers use photoshop and alike software for creating invoices using the templates available.
Format of an Invoice raised by a freelance writer
Format of Invoice raised by freelance videographer or designer
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