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2018-08-08 23:59:41Small Business TipsEnglishMake your long - term freelancing jobs financially viable by adopting a milestone payment schedule. Instead of asking for lump sum payment... Tip: Adopt a Milestone Payment Schedule

Freelancer Tip: Adopt a Milestone Payment Schedule

1 min read

One out of every four freelance workers is from India as of 2018. Whether you’re thinking about joining those ranks or you’re a seasoned vet, receiving payments in a timely fashion is essential. You may be able to keep your cash flow steady by taking on smaller, short-term projects. But, larger projects can lead to long periods of financial drought if you’re not proactive.

You can make long-term freelancing jobs more financially viable by setting up milestone payments before beginning the project. You don’t need to send the  invoice upon the completion of the project. Instead, you can receive percentages of the full sum as you reach agreed-upon stages of the project. Say you’re a freelance writer creating content for a website. Rather than receiving a lump sum when the entire website has been written, you could request that you get paid for each individual page.

This approach to running a freelance business improves your cash flows. It also gives you more leverage to ensure that you do get paid. After all, a client is more likely to pay you to keep the project moving, as a partially-written website has no practical use. Make it easy for clients to send payments at each stage of the project. That ways, most of them shouldn’t have any problem abiding by a milestone payment schedule. QuickBooks makes it incredibly simple to send smart online invoices. This allows clients to pay any time, from anywhere, using multiple currencies. Your clients can choose between credit card, Apple Pay, free ACH bank transfer, or even over-the-phone payments.

As a freelancer, you have the advantage of being able to create your own payment structures.  So go ahead and find an approach that works for your financial situation. Setting up a milestone payment plan keeps your income more steady and reliable. Also, it encourages clients to pay in a timely fashion.

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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