Many people are making the switch from a typical employed 9-5 role for freelance work or using freelance work to supplement their income and it is easy to see why. Freelance work puts you in complete control and provides great flexibility, but those that are just starting often have concerns over how they will get paid and how best to manage their finances so read on for a few tips.
Ways To Get Paid Freelancing
There are a number of different ways that a freelancer can get paid and it is usually the client that dictates the terms but not always so it is helpful to know of the main options.
Cheque: Cheque payment is not too common these days but can be advantageous because it is quick, easy and there is no fee for depositing.
PayPal: PayPal is a common form of payment because it is so quick and easy for all, plus it is simple to make payments remotely and even if the client is in a different country and the money appears instantly but there can be fees involved.
Credit Card: Credit card payments can also be accepted and clients sometimes prefer to pay with plastic. You will need to purchase your own processing equipment but this can work well with certain industries.
Electronic Funds Transfer: The most common and straightforward way for a freelancer to get paid is simply through an electronic funds transfer. This takes out the middle man and there are no fees involved but it can take a few days for the money to appear.
Tips For Getting Paid Freelancing
Getting paid as a freelancer is not quite like an employed worker so it is important that you know a few tips on how to get paid. Clients usually determine the frequency of payment (although not always), but it is important that you keep completely accurate records and send a simple yet detailed invoice on time. If you do not receive payment, you need to follow this up as soon as possible in a firm yet friendly manner.
Additionally, it is important that you are familiar with IR35 compliance as relatively new legislation that is designed to prevent Limited Companies from taking a dividend where they acted as an employee. There are a number of key factors that you will need to familiarize yourself with in order to remain compliant.
Make More Money As A Freelancer
It is easy to see why so many people are turning to freelance work either as their main source of income or as a way to supplement. But it is important that you have a clear understanding of how you can get paid as a freelancer and the best way to manage your finances. That way you can receive money in the best and most efficient manner when freelancing.
