How to Simplify Accepting Payments from Clients
Last night, I got a DM from a freelancer asking how to make accepting payments from clients SIMPLE. So, I decided to show YOU, as a freelancer business owner or side hustle extraordinaire, how to make it happen. WITH EASE.
Here’s my breakdown!
Don’t use Paypal.
I mean, you can, but you want to look as professional as possible. You might pay a tiny bit more, but it’s important to have accounting software to track profit and losses. Plus, you can add your logo, itemized invoice info and send it to the client easily. I usually follow this path:
1. Initial Client Call
2. Itemized Proposal
3. Invoice - @freshbooks
4. Client Agreement - @DocuSign
Now, If you’re bootstrapping, you only really NEED Freshbooks, Honeybook (also does agreements) or Wave Accounting to send invoices.
The best part is the software will automatically track your efforts, payments can be made online through the encrypted platform and the payment is sent directly to your business account for a nominal fee (2.8% usually)
Now, I ALWAYS recommend requesting a check, because you don’t pay fees, but for ease of use for the customer, collect it online.
Most of these platforms also allow for quite possibly the best feature ever: AUTO BILLING
Automatically charges a Client’s credit card on a regular basis through a Recurring Profile. Perfect for subscription clients you’re billing on a recurring basis with the same cost each month - there’s no fuss with collecting payment as it’s done automatically!
Trust me, this is crucial. It puts your process at ease. And if you ever want to sell your business in the future. A lot of this will be contingent on recurring revenue. If you can show you’re making consistent money with a client, you’re ripe for a potential buyer.
Lastly, let’s talk bookkeeping.
I’ve been using @bench for the past three months. It’s insane! They import bank statements, categorized transactions, and prepare financial statements every month without you lifting a finger. End of the year, submit a summary to the accountant and DONE!
Great for e-commerce, agencies or freelancers without much time. I use it for one of my businesses and the financial statement at the end of the month gives me a bird’s eye view. Super useful!
You can check it out here - bit.ly/trybench
August 20, 2019