As a freelancer, your time is your most valuable asset. Not only do you need to manage your workload effectively, but you also need to ensure that you’re accurately billing your clients for the work you do. This is where invoicing and time tracking software comes in. But with so many options on the market, it can be overwhelming to know where to start. This beginner’s guide will walk you through the basics of invoicing and time tracking, and help you choose the right software to streamline your business.
Understanding the Basics of Invoicing
Invoicing is the process of creating and sending a bill to a client for the work you’ve completed. It’s important for freelancers to invoice their clients promptly and accurately to ensure they get paid on time. There are three main types of invoices: hourly, project-based, and retainer. Hourly invoices are based on the number of hours you’ve worked, project-based invoices are based on a specific project, and retainer invoices are based on a fixed amount of work over a certain period of time.
Regardless of the type of invoice, it’s important to include key elements such as your logo, contact information, a detailed description of the services provided, pricing, and payment terms. A professional invoice not only ensures that you get paid, but it also helps to build trust with your clients.
While traditional offline payment with checks is still a very popular method, keep in mind that depending on the type of client you work with, you will likely be asked for alternative payment options like credit card or PayPal. While this can help you get paid faster, these alternative payment methods will come with processing fees. It’s important to communicate your payment preference to your client ahead of time and your payment processing policy if you desire to have one. Many freelancers and agencies will charge an additional percentage amount to cover the fees related to convenience of digital payments, however other businesses may find that it’s worth it to eat these costs in order to give clients flexibility.
Understanding the Basics of Time Tracking
Time tracking is the process of recording the amount of time you spend on a project or task. It’s important for freelancers to track their time accurately so they can bill their clients correctly. There are several methods for tracking time, including manual time tracking, time tracking software, and time clocks.
Manual time tracking involves manually recording the start and end time of a task, while time tracking software automates the process by running in the background and tracking the time spent on different applications. Time clocks are physical devices that employees punch in and out of to track their time.
In many cases for an agency with a team and a set work schedule, a time sheet calendar for hours input will be the most convenient way to record time across the team so that the hours are gathered in an organized and streamlined way. While time tracking devices are great for individuals with a specific way of working, scaling this across an entire team is usually not possible since there will inconsistencies. A time tracking policy where staff members are well acquainted with the internal system and processes is incredibly important for teams. It can pay dividends to keep this mind when you’re scaling your business from “Zero to Billable” as defining processes ahead of time will help when you onboard staff.
Time tracking can help you improve your business in several ways. It allows you to accurately bill your clients, identify profitable services, and identify unprofitable services. It also helps you manage your workload effectively and ensure you’re not overworking yourself or your team. Lastly, it can also be an important analysis tool for future estimation as you learn about what kind of clients consume more of your time and services.
Choosing the Right Invoice and Time Tracking Software
With so many invoicing and time tracking software options on the market, it can be overwhelming to know where to start. When choosing software, it’s important to consider factors such as cost, features, ease of use, and integration with other tools.
Clientary is designed for freelancers and professional services businesses and offers the ability to create professional invoices and track time seamlessly. It also offers additional features such as recurring invoices, online payments and more. With our software you can choose from a variety of plans to meet your business needs.
Implementing Invoicing and Time Tracking in Your Business
Once you’ve chosen the right invoice and time tracking software, it’s important to set it up and use it effectively. Here are some tips to help you get started:
- Send invoices promptly: Don’t wait until the end of the month to invoice your clients. Send invoices as soon as the work is completed to ensure you get paid on time.
- Track time regularly: Make sure to track your time regularly to ensure you’re billing your clients accurately.
- Use built in project and task management to break down work so that your team’s work is focused on billable services.
- Use invoicing and time tracking data to improve your business: Use the data generated by your software to identify your most profitable services, improve your pricing strategy, and manage your workload more effectively.
In conclusion, invoicing and time tracking software is essential for freelancers and professional services businesses. It helps streamline your business, increase your efficiency, and ensure you get paid on time. By understanding the basics of invoicing and time tracking, and choosing the right software, you can take your business from zero to billable in no time.