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A Sneak Peek at the Episode

[2:06] Managing finances can be intimidating for freelancers, but it’s important to face your fears and start understanding the numbers!

[3:25] If you have a bookkeeper, Crystalynn recommends having a sit-down meeting with them at least once a month to go over your numbers.

[4:20] If you are currently managing your finances on your own, it’s a good idea to find a QuickBooks expert to set you up and teach you how to properly manage your books.

[6:02] Crystalynn recommends five reports to look at, including the accounts receivable aging report.

[7:47] Crystalynn advises keeping a separate business account, even if you’re using your personal account to fund things initially.

[12:35] Investing in accounting software has many benefits and can help you to keep on top of business expenses more easily.

[16:10] Scheduling regular time to review your transactions is a great way to stay organized when it comes to your business’ finances.

[19:51] Finding ways to reward yourself after completing financial tasks can make them a lot more palatable!

[21:43] Waiting until January or February to compile 12 months worth of information is very stressful. Managing your finances on a monthly basis makes the process a whole lot easier.

[24:27] Bookkeepers tend to do all of the day-to-day work like invoicing, recording, and categorizing of the numbers, whereas an accountant reviews and analyzes the financial statements to help give some insight into what the numbers say about the business.

[27:58] Accountants can also support with tax planning and discussing any changes to your legal entity.

[31:45] Try to use as little cash as possible when you’re purchasing items for your business or paying for expenses. It’s better to use something that’s going to have a record.

Must-Hear Takeaways

” I think a lot of people don’t realize that while your Excel spreadsheet is great, having an accounting software allows you to go paperless and automate things such as uploading your receipts. So I would just say while it does cost you money to purchase the software, it’s worth it because there are so many benefits. I would say another benefit would be connecting all of your bank accounts.” – Crystalynn

“As soon as you can afford to pay someone, a professional, I would say do it. But I still want the business owners out there to realize just because you hired someone to manage your books, that doesn’t mean you have a hands-off approach. Absolutely not. You still need to understand what that person is doing.” – Crystalynn

“There are just some things that we don’t necessarily feel like doing or maybe even things that intimidate us a little bit, especially as it can be when it comes to numbers, but that’s still something you have to do. And so we have to figure out a way to make ourselves do it and maybe even make it more palatable for ourselves. – Nicki

“Try to use as little cash as possible when you’re purchasing items for your business or paying for expenses. Use something that’s going to have a record. So use your credit card or use your debit card, or write a check if you need to do that.” – Crystalynn

Mentioned on this Episode

• Listen to her podcast: https://www.crystalynnshelton.com/podcasts
• Website: https://www.crystalynnshelton.com/
• Facebook: https://www.facebook.com/crystalynn.shelton.5/ 
• LinkedIn: https://www.linkedin.com/in/crystalynn-shelton-cpa-09436995/ 
• Instagram: @crystalynnshelton

Related Links

• Set Your Copywriting Business Up for Financial Success
• Opening a Business Bank Account as a Copywriter
• Accounting Tips for New Copywriters
• Ep. 112: Want to Earn Six Figures as a Copywriter? Get Your Finances in Order

Tell us what you love about the podcast and what you hope to hear next! When you do, you can get access to an exclusive bonus recording featuring five wildly successful entrepreneurs who share what they do (and don’t!) look for when hiring copywriters. You do not want to miss it! 

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About the Build Your Business Podcast

Ready to turn your love of writing into a successful copywriting career?

Join professional copywriters Nicki Krawczyk and Kate Sitarz to get the tips, tools, and training to help you become a copywriter and build a thriving business of your own. Nicki and Kate have 20+ and 10+ years of experience, respectively, writing copy for multi-billion-dollar companies, solopreneurs, and every size business in between.

Whether you want to land an on-staff job, freelance full-time and work from wherever you want, or make extra money with a side hustle, the best place to start learning is right here.

See Previous Episode

Ep. 145: Catchy Hook or Clickbait? How to Tell the Difference

The post Episode 146: Face Your Freelance Finances Fears – with Crystalynn Shelton (CPA) appeared first on Filthy Rich Writer.

Recently, one of my copywriting students asked me if she should be charging her copywriting clients upfront and, if so, whether she should be charging the full amount, 50%, or another percentage.

Here’s the thing: I suspect the copywriters that have their clients pay upfront comes from a fear that the client isn’t going to pay them at all and getting some of their fee is better than getting none of their fee.

And, in my 20+ years of writing copy, I’ve never had a client fail to pay me. Sure, I’ve had some clients that were slow to pay me, but that usually was more of an innocent mistake than some desire to deny me my due funds. (And IF that should ever happen, here’s your game plan to handle it.)

That said, it’s your business! So, here are some things to consider.

Invoicing Once the Project Wraps

Personally, I prefer to have my clients pay me after the project has been delivered and they’re perfectly happy—and that’s what I recommend to my students, as well. I think it shows confidence in your skill and confidence in the fact that your client will be thrilled with what you deliver.

I think, too, that for newer writers, it’s better to charge only after the project is delivered since they’re a little more “untested.” In a way, it’s a risk for a client to hire them, and only asking for payment once the project has been delivered and the client is perfectly happy is a good way to help take that risk off a client’s shoulders. Asking them to hire a less seasoned writer and to pay upfront for the services from that less seasoned writer may be too much risk for many clients to take.

Just like you’re concerned of a client not paying you, clients may worry that you’re not going to deliver your copy. Trust goes both ways!

Invoice Upon Delivery of Work if You’ve Worked with a Client Before

Of course, if you’ve worked with a client before and didn’t charge up front, then I’d strongly recommend you keep invoicing upon delivery of work. If you suddenly decide to start charging upfront, that may leave your clients wondering what happened to the trust built in your relationship.

Charging Copy Clients Upfront

If you’re going to charge copywriting clients up front, consider what makes sense for the situation. If, for example, you’re taking on a project that is going to take 2 months of your time, then you may consider something like a 50% deposit with the other 50% due upon the project’s completion.

If your gut is telling you to charge all upfront, you’re welcome to test it out. However, from a client’s perspective, it is easier to get me to say “yes” to hiring someone if I have to pay only once I get the promised deliverables.

Of course, the bigger the project, the more clients want to ensure they’re getting the value for which they paid. Consider what is the best win-win situation for you and your client, especially if you really don’t want to walk away from the project.

How to Charge Repeat Clients

You can, of course, continue to invoice your client the same way you always have. But, if you do significant amounts of work with a client, you may decide that on your second (or whatever number project) that you’ve build some rapport and invoicing upon delivery of work is something you’re comfortable with.

It’s Not a One-Size-Fits-All Solution

Many copywriters think of their processes in black and white. But so much of successfully running a freelance business depends on knowing when to flex certain policies and when to hold back.

For example, if you’re working with a major corporation, chances are, they have a system for billing (and they’re likely good for the money). Other clients may not have a system set up for billing. And you may not have as much trust that they’re good for the payment.

You are 100% within your rights to charge some clients up front for work and invoice others only after you’ve completed the project. As Comprehensive Copywriting Academy students know, you need a system for tracking invoices. If you have that, it’s easy to know where each clients stands.

Your turn! Do you (or would you) charge a client upfront? If you were client, how would you feel about that? Why? Let us know in the comments below!

The post How to Know if You Should Charge Copywriting Clients Upfront appeared first on Filthy Rich Writer.

Once you get money coming in from several clients, things can get a little chaotic—to say the least. With multiple clients, multiple projects, and multiple invoices in various states of payment, how do you keep track your freelance income and keep it all straight?

If you’re seeing ads for invoice tracking software for freelancers, you may feel like this type of software is essential. I’ve seen some of these ads, myself. They do a great job of making you feel like, if you were a real freelance professional, you’d use this software.

That’s not the case, though. You don’t need this software to keep your invoices straight.

However, you do need a system.

Freelance Income Tracker Template

Here’s what your system needs to track:

• What projects you’re currently working on
• What projects you’ve concluded and have invoiced for (bonus tip: the same day you get client approval, send them your invoice. Make this a habit, and you’ll save yourself a lot of headaches)
• How much the invoice is for
• The invoice number
• When you sent it
• When you received it
• Whether or not you’ve set aside money for taxes

Wow, kind of a lot, right? What kind of crazy, high-tech system is going to let you track all of this?

Open yourself up an Excel document or Google Sheet.

Really: an excel document is all you need to track your invoices effectively. (Well, with one caveat—more on that in a sec.

Across the top of your doc, create these column titles:

• Client
• Project (write a two- or three-word description)
• The date you sent the invoice
• The invoice number
• The amount it was for
• The date you receive the invoice
• Whether or not you’ve set aside tax funds (y/n)

How to Use Your Freelance Invoice Tracker

Using it is just a simple as creating it. As soon as you get a client, enter the client name and short project description in the sheet.

If you’ve agreed on a project price, you can put that in there, too—it will help keep the info handy.

This shows you your current, unbilled projects.

When you finish a project and bill for it, put in your invoice number and the date you sent it. This gives you an easy way to see your unpaid invoices.

When you receive a payment (and automatically deposit any checks you receive via your phone—you need to), record the date you receive it. This gives you a handy reference for how much income you’ve made.

And, of course, when you transfer funds to your for-taxes-only account, record that you’ve done so. This will help you remember to do it, as well as help you remember which payments you’ve planned for in your taxes.

And that’s it! Really, that’s all you need.

Make Tracking Income Part of Your Process

But time for that caveat: You have to actually use it. No tracking system, not this one and not some five-figure swanky tracking software, will work unless you actually use it.

Make it a habit to record your projects, bill as soon as you get approval, deposit your payment as soon as you get it, and transfer your tax savings as soon as the payment is deposited. And, of course, make it a habit to record all of this in your Excel or Google Sheet invoice tracker.

Your turn! Do you have any additional tips for tracking invoices? Or questions about this system? Let us know in the questions below!

The post The Easiest Way to Track Freelance Income [With Template] appeared first on Filthy Rich Writer.

Every freelancer’s fear (apart from not finding work) is that their clients won’t pay them. For the record, it’s very, very rare that a client will just never pay you. In the course of my nearly 20-year copywriting career, it’s never happened.

Remember: clients are human. And, as such, it does happen from time to time that they put off paying invoices longer than they should. Sometimes they simply forget.

You know how flight attendants go through the safety lecture and say, “In the unlikely event …” Well, think of this blog post as the safety lecture. It’s very unlikely you’ll face this scenario, but bookmark this blog post just in case payments aren’t forthcoming.

Step 1: Ask Your Clients If They Have an Existing Payment Process

The first step is to know what you’re working with. Some of your clients may have a formal payment process, particularly with organizations that have a finance department. Many established organizations that work with various service providers and/or vendors (like copywriters) will be used to paying invoices.

After you’ve completed the project and are ready to invoice, you can say, “Hi [client name], I am prepping my invoice for [insert project] and wanted to quickly check to see if you have a certain process for invoicing. Is there anything in particular you need me to include on the invoice that’s specific to your organization? If not, I’ll use my standard invoice template. Should I send you that invoice directly, or someone else? And, finally, do you have standard payment terms? I generally include “Net 15″ on my invoices, but please let me know if you have a different process. Thanks!”

Net 15 (or Net 30, Net 60, etc.) simply means the payment is expected within that number of days after the invoice is sent.

Some clients may have you carbon copy the person you’re working directly with but include someone on their finance team on the “To” line. Others may have you include a specific work order number on your invoice. Some pay invoices immediately upon receipt. Still other clients pay biweekly, monthly, or even net 120! Some have no process at all.

Knowing what you’re working with up front can save a lot of anxiety about where your invoice stands, especially if you know they have set payment cycles.

Step 2: Send a Gentle Reminder Email

Unless your client has a track record of not paying your invoices (in which case, why are they still your client?), you want to give them the benefit of the doubt. We’ve all forgotten something from time to time and your clients are busy. If your client does not have an established payment process and if you haven’t heard anything about a week after you’ve sent your invoice, you can send them a gentle reminder email.

If you know they generally pay monthly and a week into the month you don’t see a payment, you can send a reminder, too. Basically, you want to take into account what you know, and then send a gentle reminder if they’ve missed the deadline by a week.

Your email can be as simple as, “Hi [insert name of client], I just wanted to check in about that invoice I sent you on [insert date]. Please let me know if you have any questions.”

You can even reply using the original email you sent them so it’s all part of the same thread and simply pops back to the top of their inbox.

For most clients, that will be enough to jog their memories and remind them that they need to pay you.

Again, most clients are good people, so you want to be polite your first email. There’s no need to get tough.

Step 3: Send a More Direct Follow-Up

Now, let’s say that another week goes by and you still haven’t heard anything. Or, more likely, they promised to pay, but haven’t sent you a payment yet.

At this point, you can be a bit more direct. Still, though, you don’t want to burn bridges. So be straightforward, but polite.

This email could say, “Hi Jim, it’s been two weeks since I sent my invoice and I haven’t seen payment come through. Could you let me know when I can expect it?”

When they receive this email, the majority of the small percentage of clients who haven’t paid you after your first email will feel embarrassed and send out payment right away.

Step 4: Pick Up the Phone

Let’s say, just to cover all bases, your client still doesn’t pay you after the two reminder emails.

Again, let me emphasize, this is exceedingly rare.

Your next step is to get in contact and let your client know that you won’t be able to do any further work for them until your invoice is paid. This is tough, but fair.

You could send this as an email, but if you’re feeling brave, it will be even more effective if you pick up the phone and make a call. Stay calm and stay polite, but be direct.

You can’t do work if you don’t get paid, right?

At this point, you may be wondering what you can do to get your money. Do you threaten them with small claims court? Have an attorney send a letter?

Well…you could…but I wouldn’t recommend it. Small claims court takes a lot of time and isn’t especially effective. And hiring an attorney is expensive. Basically, you’d be spending more time and money; throwing good money after bad. (Yes, that’s even if you have a contract with the client.)

Look at it this way: It’s not worth paying $400 to get paid for a $300 invoice. And it’s not worth five hours of your time to get paid for a $300 invoice. That’s five hours you could spend working and earning money.

Your best course of action, instead of trying to revenge or force a payment, is just to focus on finding new clients and new work. It will be hard to let it go, but do it anyway.

You won’t gain any advantage by trying to exact revenge. But you will by moving on and finding new work. And you never know…one of these days, you might just find that check in your mailbox, after all.

If you’re worried about a client not paying you, bookmark this page so you have it for later. That way, you’re ready with a game plan in the unlikely event it happens.

Watch More: What To Do When a Client Doesn’t Pay

On episode 113 of the Build Your Copywriting Business podcast, Nicki and Kate offer more tips on what to do if a client doesn’t pay. Watch to feel prepared and as a reminder that this isn’t likely to happen to you.

Read More: Prevent a Project From Going Off the Rails

Besides not getting paid for your work, there are other ways projects can fall through. Here are some of them and ways you can avoid this from happening to you.

Your Turn

Have you ever had a client that took especially long to pay you? How long? And what did you do? Let us know in the comments below!

The post How to Deal With Copywriting Clients Who Don’t Pay appeared first on Filthy Rich Writer.