How to get paid and how to accept payments as a self-employed solopreneur and freelancer - Video

Let's talk about how to get paid when you're a freelancer or self-employed person. Hi, I'm Ivangellys, a solopreneur who runs a one-person business specializing in vintage furniture and prop rentals.

Nowadays, credit cards are one of the most common forms of payments. So whether you're running a brick and mortar store or running an online shop like me, it's important to have various methods to accept credit card payments.

There are three things you need when setting up the infrastructure to accept credit card payments: 

1. Merchant account 
2. Payment service provider
3. Card reader hardware and/or software

Once you have all three and you set up your service with the provider, you can start accepting payments online or in person. Your online store might have built-in payment processing, or allow you to integrate processing from traditional companies or digital processors. You can also check with other payment service providers if their software can sync with your online store.

In person, you'll need three things to accept payments: 

1. Payment service provider who will handle the processing of transactions
2. Credit card hardware that allows customers to swipe, tap, or insert their card on site
3. POS system that tracks inventory and provides receipts to customers

A receipt is just one type of proof of payment. For an online furniture business like mine, I work with invoices, too. And there are differences between invoices and receipts that every business owner should know.

Invoices and receipts are essential to getting paid. While they're both records of sales, these are the distinct differences. An invoice is used when your business has provided a service or product, but hasn't collected the payment for it yet. For example, if I were to rent out a full set of vintage furniture for a movie, I would send an invoice with each piece itemized before collecting payment. A receipt comes into play after you've been paid. It's a record of the transaction between you and the customer that shows you've been compensated for your services.

QuickBooks Solopreneur makes it super easy to manage online payments. And with QuickBooks Payments, it's even easier with payment-enabled invoicing. You can customize and create estimates and turn them into instantly payable invoices, whether you're on a desktop or on the go. All you have to do is send an invoice or request payment with a link, so your customers can pay online right away. And you can get mobile alerts and stay on top of your business from anywhere.

Bonus tip on invoicing. Make sure you include payment terms. Payment terms are important to include in an invoice to ensure you get paid on time. They're essentially a contract between you and the customer stating how, when, and by what method you'll be paid for your services.

Payment terms are essential for a few reasons. They're important to protect your business with every service or product you provide. It’s like adding a protective layer of material over a vintage chair or sofa to ensure it doesn’t fray. They're also great for knowing when you're going to get paid to better predict cash flow for your business of one.

As a self-employed business owner, make sure you've considered all of these things when setting up your payment processing. Use QuickBooks Solopreneur to give your customers flexible ways to pay, whether it's through ACH, credit card or digital wallet payments. With a clear view of all your money in and in one place. Now just sit back and get paid.

Check out the QuickBooks blog resources below to learn more about how to run your business with ease. And don't forget to like and subscribe for more solopreneur tips.