The Best Invoicing Software for Freelancers

For most freelancers, balancing the books and invoicing clients is the least fun part of the job. But knowing how to draft a foolproof freelance invoice can mean the difference between seamless client payments, and months of legal disputes. 

There are countless software options out there offering a range of features like invoice creation, payment tracking, and identifying text deductions. But only one tool that’s been specifically designed to help freelancers streamline all of their financials in one place.

In this article, we’ll walk you through how to invoice as a freelancer, handle late payments, and keep yourself organized. 

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Types of Freelance Invoices

The type of invoice you choose will depend on the type of work you do, the payment schedule, and your client's preference. Here are some of the most common types of freelance invoices:

Hourly Invoice

An hourly invoice is used when you charge your clients by the hour. This type of invoice includes the number of hours worked, the hourly rate, and the total amount due. It is important to keep accurate records of the hours worked to avoid any disputes with the client.

Project-Based Invoice

A project-based invoice is used when you charge your clients a flat fee for a project. This type of invoice includes the project details, the agreed-upon fee, and the payment schedule. Try to be as specific and clear about the scope of work as possible. This will help prevent misunderstandings down the road.

Recurring Invoice

A recurring invoice is used when you provide ongoing services to a client. This type of invoice is sent on a regular basis, such as weekly, monthly, or quarterly. In this case, it’s especially important to set up a payment schedule with the client to ensure timely payments.

Other types of invoices include deposit invoices – if you require the client to pay a portion of the project rate up front – and late payment invoices. In this latter case, you would include the original amount due plus the late payment fee (which is typically a set percentage per month of outstanding payment).

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Essential Elements of a Freelance Invoice

The onus of pursuing payment is on you, so it’s important to make sure you dot every i and cross every t. Here are some essential elements that should be included in every freelance invoice:

1. Contact Information: for both yourself and the client/company. Include fields for name, address, phone number, and email address.
2. Invoice Number and Date: each invoice should have a unique invoice number and a date indicating when the invoice was issued. 
3. Itemized List of Products/Services: a detailed description of the services provided, including the date and time of the work performed.
4. Payment Terms: your payment terms (such as tax and late fees) should be clearly stated on every invoice, typically at the bottom.
5. Total Amount Due: clearly state the total amount due, including any taxes or additional fees that may apply.

Lunafi automatically ensures all this essential information is included on each and every invoice, so you can keep a record of all payments due, prevent misunderstandings, and get paid on time.

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How to Invoice as a Freelancer

With your template in place,* it’s now time to invoice your clients. Here are a few best practices to keep in mind:

• Clarify payment terms upfront: Clarify payment terms with your clients when you both sign your contract. That way they aren’t surprised by your terms when they receive their first invoice (because let’s be honest, we all skim contracts too fast sometimes).
• Be clear and concise: You may think it’s enough to write “social media graphics” as your line item, but it that’s a service you regularly offer a repeat client, it could lead to confusion. Try to specify the month or specific campaign that work was for so both you and your client can gauge where you’re spending your time, and how you might both work more effectively. 
• Use invoicing software: Consider using invoicing software to automate the process and save time. Some popular options include Wave, Bonsai, FreshBooks, Square Invoices, and HoneyBook. These platforms offer customizable templates, automatic payment reminders, and other features that can help you stay organized and get paid faster.
• Follow up on unpaid invoices: If a client hasn't paid by the due date, don't be afraid to follow up with a friendly reminder. You get to determine how long after the due date it too long, and when you want to enforce late payment fees. It may feel uncomfortable at first but remember: you’re running a business, not asking for allowance. 
• Keep detailed records: Make sure to keep track of all your invoices, payments, and expenses. Many people use a simple spreadsheet but those are prone to human error. Our software links directly to your bank account(s) so all income, expenses, and payments are tracked and calculated instantaneously. You can even customize your dashboard to view the most relevant data at a glance, in graph or list form.

By knowing how to invoice as a freelancer, you can ensure a smooth and efficient invoicing process that helps them get paid on time and maintain positive client relationships.

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Organization and Record-Keeping

Freelance financial software can help track invoices, payments, and expenses, but it’s important to keep physical or digital records as well in case you have to submit documents for tax or loan purposes. 

Here are a few tips for staying organized and keeping accurate records:

• On your desktop or Google Drive, keep a separate folder or file for each client, where you can store all relevant information, including contracts, invoices, and correspondence.
• Use a consistent naming convention for your files and folders, so you can easily find what you're looking for.
• Keep a calendar or schedule of all your work and deadlines, so you can stay on top of your workload and avoid missing important deadlines.
• Set up automatic reminders for when invoices are due, so you don't forget to follow up with clients who haven't paid. Or we’ll remind you in the Lunafi app. 
• Use a time-tracking tool to keep track of the hours you work on each project, so you can accurately bill clients for your time.

Putting these systems in place and sticking to your protocols may take some extra effort upfront, but it will save you time and headaches in the long run.

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The Best Invoicing Software for Freelancers at Your Fingertips

Invoicing can be a daunting task for freelancers, but with the right tools and knowledge, it can be streamlined and efficient. 

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If you want to try Lunafi’s invoicing, financial tracking, tax estimates, and more, you can follow this link to sign up for a free trial. Let us take the admin off your shoulders so you can focus on the stuff that matters. Find out why Lunafi is considered one of the best invoicing softwares for freelancers.

*If you aren’t using our seamless invoicing service you can find some great invoice templates on Canva or Paypal.