Invoice frequency

[maverick192]

I'm just about to start my first contract as a ltd owner rather than through an umbrella (which I've been doing for eight months before now).

My question is about invoice frequency.

Is it best practice to invoice:

A) Once per calendar month (i.e. one invoice at the end of each month). As my agency timesheets are monthly, this method equates to one timesheet per invoice.
OR
B) Invoice after one month of work (e.g. start on 6th May, so invoice 1st month on 5th June).

My agency timesheets are monthly, but would the expected invoice frequency change if they were weekly?

I'm probably going to use option B, although (as I would need to have complete timesheets with my agent before issuing the invoice) this will result in me not being able to invoice for month 1 (6th May - 5th June) until the end of June, when June's timesheet will be signed by the client.

I don't mind the cash flow holdup, I just don't want to look stupid by doing something the agent doesn't expect!

[moorfield]

Option A - in practice most people will get their timesheets signed after the end of each calendar month and then submit with invoice to pimp.

So in my case I'll probably get round to getting my timesheets for April done at the end of this week (Fri 2 May) and sending off to pimp with invoice either Fri or following week.

Same applies if you start a gig mid month - first invoice just to the end of the month.

[swamp]

Always at the end of each calendar month. Even if you start on the 29th, say, invoice for three days in that month. The bottom line is keep paperwork simple and to a minimum.

[Sockpuppet]

Always at the end of each calendar month. Even if you start on the 29th, say, invoice for three days in that month. The bottom line is keep paperwork simple and to a minimum.

A good idea would be


No always about it. I used to invoice weekly. Took 30 seconds to e-mail an invoice to pimp. Less exposure to bad debt, more interest earnt and its really not that complex to track.

[VectraMan]

I've tended to use 0.000001653 Hz.

[BrilloPad]

I invoice once per month - and never have more than one invoice outstanding at any one time. In case of bad debt.

[xoggoth]

Very unlikely to happen but be wary of persistently late payers. I had one direct client that always paid late and only after several phone calls. They went bust owing me lots of dosh and I am still trying to get a small percentage back from the administrators over 4 years later. On hindsight I was an idiot not to recognise the signs that they paid late to ease their cashflow.

[malvolio]

I invoice monthly in full weeks, ignoring the calendar and working to the week containing the last Friday in the month. Never been a problem - if you use cash accounting, it's when the invoice is paid that matters to the books and the VAT. Clients are also used to thinking in weeks rather than calendar months.

Also, of course, cross-check with the payment terms in your contract. No point invoicing weekly if they only pay monthly, for example.

[QwertyBerty]

Surely it depends on the agency. Some prefer weekly, some 4 weekly and some monthly. I just go with whatever they say if it means I'm more likely to get paid without additional hassle.

QB.

[ASB]

As Malvolio says check the payment terms, little point in invoicing more frequently than that.

Also it is not unusual for contracts to have terms relating to invoicing frequency