Brennan Dunn’s invoice strategies make for a good starting point when a freelancer is negotiating with a client. The aim is always to make the risk of non-payment as low as possible while still keeping the client happy. But careful invoicing can bring another benefit to freelancers.
The stereotype image of a business meeting always shows a graph with ups and downs depicting rising and falling income levels. Freelancers rarely have time to make graphs like that, and they’re not always inclined to do so. Less important than the amount they earned over the previous months is how their schedule is looking over the coming months.
But tracking sales and income is important. It tells a freelancer how they’re doing, whether they’re earning an amount comparable to the level they’d make in a regular job, what causes income spikes and what leads to losses of revenue. Keeping careful track of invoices, ideally by sending all invoices through the same software, lets freelancers easily see how they’re doing. They can identify weak months, look for patterns in revenue generation and adjust their marketing and productivity to maximize earnings and smooth out the inevitable peaks and troughs that every freelancer experiences.
Income tracking isn’t usually marketed as a benefit of invoicing but it is a valuable way of monitoring a small business and encouraging its growth.