How freelancers should structure an invoice

The line item is where freelance invoices go wrong. A single line reading "Design work — $3,000" invites the client to question the whole figure. Splitting the same job into four lines with hours or deliverables against each turns the conversation from "is this worth $3,000" into "which of these four things do we want".

If you bill hourly, put the rate in the unit price and the hours in quantity, so the client can see the arithmetic. If you bill by deliverable, put the deliverable in the description and leave quantity at one.

Getting paid on time as a freelancer

Late payment is the defining problem of freelance work, and most of it is preventable at invoice time rather than at chase time.

• Invoice the day the work is delivered, not at month end
• Put a specific due date on the invoice, not "net 30"
• Include your bank details or payment link on the document itself
• Ask for a deposit on any project over a couple of weeks long
• Agree a late fee in writing before you start, then actually apply it

Tax as a self-employed freelancer

You are responsible for setting aside your own tax, and in most countries for a self-employment or social contribution on top of income tax. A common rule of thumb is to move 25–30% of every payment into a separate account the day it lands.

Keep every invoice you issue. In an audit the invoice, not the bank statement, is what establishes what the payment was for.