Invoicing for Freelancers: A Complete Guide
As a freelancer, invoicing is an essential part of everyday life. Whether you are a designer, developer, consultant, or copywriter, you need to stay on top of your invoicing to maintain a healthy business.
Before You Start: Registration
Before you can send invoices, you need to be registered as a business. Here are the key steps:
1. Register as a Sole Trader
The simplest option for most freelancers is to register as a sole trader (or sole proprietor). In Scandinavia, this is done through the national business registry - Bolagsverket in Sweden, Brønnøysundregistrene in Norway, or CVR in Denmark.
2. Consider VAT Registration
If you expect your turnover to exceed the VAT threshold (which varies by country - for instance, NOK 50,000 in Norway or SEK 80,000 in Sweden), you must register for VAT. You will then need to add VAT to your invoices, typically at 25%.
3. Open a Business Bank Account
It is wise to have a separate bank account for your business. This makes it much easier to keep track of income and expenses.
What Should Your Invoice Include?
A complete freelancer invoice should contain:
- Your name and business registration number
- Customer name and their registration number (if applicable)
- Invoice number (sequential numbering)
- Invoice date and due date
- Description of work completed
- Number of hours/units and price
- Total amount including any VAT
- Bank details and payment reference number
Practical Tips for Freelancers
Invoice Regularly
Do not wait until the end of a large project to send an invoice. Bill monthly or after milestones. This improves cash flow and reduces risk.
Have Clear Agreements
Before starting an assignment, make sure you agree on:
- Hourly rate or fixed price
- Payment terms
- What is included in the price
- Any additional costs
Follow Up on Unpaid Invoices
Have a system for reminders:
- Reminder - Send a friendly reminder 1-2 days after the due date
- First follow-up - 14 days after the due date
- Second follow-up - 28 days after the due date, with notice of potential debt collection
- Debt collection - Consider using a collection agency for persistent non-payment
Keep Your Books in Order
As a freelancer, you are responsible for your own bookkeeping. Tips:
- Archive all invoices digitally
- Keep track of expenses with receipts
- Set aside money for taxes on an ongoing basis
- Submit your tax return on time
Common Mistakes Freelancers Make
- Overly long payment terms - Stick to 14-30 days
- Vague descriptions - Be specific about what you delivered
- Forgetting to follow up - Have routines for reminders
- Underestimating time spent - Always log your hours
Use Fakturagenerator.com as a Freelancer
Fakturagenerator.com is perfect for freelancers because:
- It is completely free to use
- No registration is required
- The invoices look professional
- You get automatic payment reference numbers
- Easy to export to PDF
As a freelancer, your time is money. Use a tool that lets you create invoices in seconds, not hours.
Start by creating your first invoice on Fakturagenerator.com today. It takes less than a minute, and you do not need to create an account.