Freelancers - do you want to get paid?
As a freelancer in Australia, getting paid on time and in full is critical for your financial stability and business success. Let’s face it, we all want to eat and feel confident that we will have the money to pay our rent or mortgage. Unfortunately, it's not uncommon for freelancers to encounter clients who are slow to pay or fail to pay altogether, leading to stressful and often costly situations. So, here are some steps, from an expert in how to protect yourself, that you can take to ensure you get paid for your work as a freelancer in Australia:
1. Set clear payment terms with the client before starting any project.
Make sure your client agrees to your payment terms in writing.
And make sure you include the following (at the very least):
a. the payment amount,
b. due date, and
c. method of payment.
2. Use a template agreement with clear terms to protect yourself and make sure you and the client sign it.
a. Please keep a record of the agreement for your own records. As a bonus this will help you when it’s tax time! Not only will it be super handy when it comes time to do your tax, it will be the first, and last, thing you will need to try and get paid if the client is being a bit shifty.
3. Request a deposit
a. One way to mitigate the risk of non-payment is to request a deposit upfront. This could be a percentage of the total project cost, or a flat fee. Not only does this provide some cash flow for you as you work on the project, but it also shows that the client is committed to paying for your services.
4. Invoice promptly and accurately
a. Be diligent about invoicing promptly and accurately. This means providing a detailed breakdown of the work you have done and the amount owing. Make sure you include your payment terms on the invoice and follow up with the client if the invoice remains unpaid after the due date.
5. Follow up on overdue payments If a client is slow to pay or misses a payment, don't be afraid to follow up.
a. Start with a polite reminder and ask for an update on when you can expect payment. If this doesn't work, escalate to more assertive methods, such as sending a formal letter of demand or engaging a lawyer to send a letter, or maybe even debt collection agency.
6. Consider using a payment platform.
a. Using a payment platform like PayPal, Stripe, or Square can provide added security and convenience for both you and your clients.
b. These platforms often offer invoicing, payment tracking, and dispute resolution services, making it easier for you to manage your payments.
7. Have a contract in place
a. Finally, having a contract in place that outlines your payment terms and expectations is essential.
b. This provides legal protection and ensures that both you and your client understand the terms of the agreement.
c. Consider working with a lawyer or legal professional to draft a contract that meets your specific needs as a freelancer.
d. Make sure you tell the lawyer all the possible uses you might have so they can draft you a template you can use multiple times.
In summary, getting paid as a freelancer in Australia requires diligence and proactive measures to ensure timely and accurate payment. By setting clear payment terms, requesting deposits, invoicing promptly, following up on overdue payments, using a payment platform, and having a contract in place, you can protect yourself and your business from the financial risks of non-payment.