In these volatile times, it is more important than ever to take steps to ensure that you've paid for the work you do. As someone once said, until you've been paid, your work is a gift from you to them. Whether you're trying to run a business or a home budget, it is all going to be dependent on cash flow. Here are some tips that will assist you in ensuring that you get paid properly and on time.

Set Out Clear Terms From The Start

If you approach any business to engage their services, they will have terms and conditions of business. Regardless of if you're a business or a one man sole trader, you will want to ensure that you outline your payment terms prior to the commencement of any work and that your client provides you with a signed copy of your terms that show that they agree to them. Be upfront with your payment terms; there is nothing worse than having 14 days payment terms and discovering at the end of your assignment that your client pays 30 days EOM.

Get Trade References

For new clients, it is always worth asking for trade references to ensure that they're reliable and prompt payers. If they don't agree to trade references, it could be an indication that they're trying to hide something. If they have nothing to hide, they should be more than happy to have some of their suppliers sing their praises.

State The Payment Date On Your Invoices

Keep your invoices as straight forward and clutter free as possible however make sure that the amount and the payment date are clearly defined. It would also be in your best interests to spell out the various different payment options that your clients can use in order to pay you.

Act NOW On Late Invoices

With the way things are currently out there, don't wait to act on overdue invoices. Some people may not want to act because their customer is a "long standing good customer" however keep in mind that good customers are always going to be the ones who pay their bills on time. Some clients will inevitably give you a run around with excuses and 'misplaced invoices' however there are many who genuinely have had an invoice or two slip through the cracks and will pay immediately upon reminder.

Payroll Fun!

If you're new to the freelance world and being a sole trader, then you need to ensure that you put aside enough to cover your own tax and additional on costs that you might have. Additionally, while you may charge more for your time per hour, be aware that this is because of the temporary nature of the work and you'll want to ensure that you put aside as much as you can per assignment for future savings during the quieter periods.

Of course, if you're a freelancer through an agency like Artisan, then you need not concern yourself with these things as you'll be paid weekly upon receiving your time sheet. With that, you won't have to chase accounts departments wondering where your payment is only to discover that you need to wait at least 45 days until the money hits your account. In fact, you'll even receive a group certificate at the end of the financial year which means that you can just leave yourself to focus on being creative!

At the end of the day, business is business and you need to ensure that you are upfront with how people are going to be able to engage your service. By following a few simple steps and keeping a vigilant eye and ear on your clients, you'll be able to ensure that you have enough cash flow coming in to keep you a float during the quieter periods.

Do you have any tips on how to improve cash flow? Have you got a story that you would like to share? In which case, email Artisan and we'll publish it in a future issue of Exposed.