Reply to: Confused/newbed-out about invoicing - help?

[ChickenWing]

One point still open here is that the OP is working without a formal contract. Should she do something in the meantime, such as confirm by mail her understanding that they will be working together on some terms or other? Otherwise she risks HR coming up with a real horror of a contract, when they do come up with one. But then, given the business-to-business nature of the relationship, if the OP is currently working on an implied contract, is there any reason why the client's contract should take precedence over the contractor's?

Good point. I don't like working without a signed agreement. Right now my being there is based on a proposal I did (setting out "deliverables" etc) before starting, but obviously that doesn't take the place of a contract. I can't figure out if the HR person is too busy to deal with one more thing, not busy but can't be bothered, or if she's got some other, more questionable reason for stalling and not letting me submit my already-prepared contract.

[Ignis Fatuus]

One point still open here is that the OP is working without a formal contract. Should she do something in the meantime, such as confirm by mail her understanding that they will be working together on some terms or other? Otherwise she risks HR coming up with a real horror of a contract, when they do come up with one. But then, given the business-to-business nature of the relationship, if the OP is currently working on an implied contract, is there any reason why the client's contract should take precedence over the contractor's?

[ChickenWing]

Thanks everyone, apart from NLUK, for your responses. Yes, I have indeed come from from that continent known as Permiegonia. I take your points about waiting a long time to get paid, and about the contract terms - as I added later in the thread, I had put together what I thought was a pretty awesome contract, but haven't been able to use it due to HR manager. Will make sure we have something signed before I start working long-term with them, if that happens.

As it's turned out this month, though, I had a cheque in my hand by the end of day and have banked it. I called one of the finance guys and he said to go ahead and give them an invoice for the entire month, which the head of 'my' dept was happy with, and a cheque was soon forthcoming. I am aware, however, that this was probably a Christmas courtesy thing and not to be expected under normal circumstances. Well done to the finance dept, though!

[d000hg]

He also says this.. Seriously??

Troll....

Coming from a permie world this is entirely normal so a new contractor could think it reasonable.

[NotAllThere]

He also says this.. Seriously??...

Yes, seriously. (NLUK, please pack it in). My current client has year end at the end of December. In the past few years, they've often asked their suppliers to invoice them for the whole of December before the month is over. Apparently it makes their accounting simpler.

We then make up the balance the following month.

You need to discuss with the client. Get your payment terms as low as possible. Get the credit rating of your client and if that's not brilliant, use it in your negotiation. (You must keep the amount owed at any one time to a minimum to reduce your risk). Your reason for invoicing early is to improve your cashflow. This is perfectly valid, and some clients will be accomodating. ( I've worked for a huge multinational who had a policy of 7 days' terms for small businesses, as this supported local commuities).

If you can't get exactly what you want, then if you need money you'll just have to get a loan.

[northernladuk]

I was thinking maybe I could give them an invoice tomorrow or the next day to cover the entire month of December, with terms requiring payment within seven days of 31 December. However, this would mean submitting an invoice covering work not yet done, as I'm working next week as well as this. Do people do this? Is this what's known as a pro forma invoice? Any other suggestions??

He also says this.. Seriously??

Troll....

[Support Monkey]

There is a lesson to be learned here. Agree terms BEFORE you sign the contract. In fact read your contract properley, the terms are probably in there.

Got to go with the jamjarst on this one, for next time make sure you have agreed this kind of thing before you start, having said that i think its bit cheeky to put in an invoice for work not done and they might think this as well, i would be putting in the invoice at the end of the month, you could ask the accounts department what their policy is, there are people on here who have 90 day payment terms so you could be waiting a while.

The fact you have not been paid since november is not their concern and you should have had enough money to cover this sort of thing before going contracting.

[JamJarST]

Hi all. I'm new to self-employment (and not an IT contractor, but you're an accepting lot, right?). I work with charities as a freelancer and consultant. The end of December will mark the end of Month 1 of my first contract (set to run for a total of three months).

I need to give them an invoice covering the first month in order to get paid. I would like to get paid as close to the end of the month as possible, seeing as I've gone straight from employment to contracting and so last got paid at the end of November. Of course, I know it's not a case of giving them an invoice at the end of Dec and getting paid within a couple of days. I want to get it to them ASAP to give it time to percolate through the finance department, and I know I also need to give a payment window/terms - payment within 7, 10 or 14 days, for example.

I was thinking maybe I could give them an invoice tomorrow or the next day to cover the entire month of December, with terms requiring payment within seven days of 31 December. However, this would mean submitting an invoice covering work not yet done, as I'm working next week as well as this. Do people do this? Is this what's known as a pro forma invoice? Any other suggestions??

Any guidance much appreciated....

There is a lesson to be learned here. Agree terms BEFORE you sign the contract. In fact read your contract properley, the terms are probably in there.

[tarbera]

Im 90 days payment terms with one of my directs

Hi all. I'm new to self-employment (and not an IT contractor, but you're an accepting lot, right?). I work with charities as a freelancer and consultant. The end of December will mark the end of Month 1 of my first contract (set to run for a total of three months).

I need to give them an invoice covering the first month in order to get paid. I would like to get paid as close to the end of the month as possible, seeing as I've gone straight from employment to contracting and so last got paid at the end of November. Of course, I know it's not a case of giving them an invoice at the end of Dec and getting paid within a couple of days. I want to get it to them ASAP to give it time to percolate through the finance department, and I know I also need to give a payment window/terms - payment within 7, 10 or 14 days, for example.

I was thinking maybe I could give them an invoice tomorrow or the next day to cover the entire month of December, with terms requiring payment within seven days of 31 December. However, this would mean submitting an invoice covering work not yet done, as I'm working next week as well as this. Do people do this? Is this what's known as a pro forma invoice? Any other suggestions??

Any guidance much appreciated....

be prepared for at least 45 days payment terms rather than 7 or 10 - unlikly to happen mate

[ChickenWing]

Give it a rest. He's asking for some advice.

Thanks dude. I'm female, but otherwise, spot on.

[ChickenWing]

No, I think the OP is real. As he says:



I think the chap just wants some advice

As d000hg says above, I would be talking to them about this. Find out who controls the purse strings and talk to them about when you are likely to get paid. Personally I would not have waited this long as there is nothing worse than financial pressure when you are starting out, especially when jumping from perm to contract. Money can run out very quickly.

So find out where invoices are sent to, who signs them off and actually pays them and then yes, get the invoice in to them straight away. Who hired you? If it is someone with some clout then explain the situation to them and see if they can ease the passage of this invoice through for you so that you get paid as soon as possible in Jan.

Good luck!

THANK YOU. Yes, I did just want some advice. I've got no self-employed friends or family I can ask, and I'm not comfortable going to any of my competitors with a question like this.

I also should have clarified that I had wanted to put clear payment terms and a schedule into the signed contract, but as yet there has been no signed contract. I prepared one prior to the job starting, but the lady I'm dealing with - HR manager and also a contractor - won't let me send it to her. She keeps insisting on using her own contract document and saying she'll get it to me "in a few days" (hasn't happened yet).

I wouldn't normally let this kind of situation continue and would want to submit my own contract to the client, but I trust the organisation and the manager of the department for which I'm working has asked me for a proposal for longer-term contracting. I'm prepared to allow some squirreliness on the part of the HR manager in light of the possibility of ongoing work.

But anyway, to return to the invoicing thing - you and d000hg are probably right, I do just need to ask them and then get the invoice in ASAP. I know the people in the finance department so hopefully they'll be helpful.

[AllezFrance]

This has to be the troll we seem to have attracted. No way is this a serious question.

Give it a rest. He's asking for some advice.

[administrator]

This has to be the troll we seem to have attracted. No way is this a serious question.

No, I think the OP is real. As he says:

Hi all. I'm new to self-employment (and not an IT contractor, but you're an accepting lot, right?). I work with charities as a freelancer and consultant. The end of December will mark the end of Month 1 of my first contract (set to run for a total of three months).

I think the chap just wants some advice

As d000hg says above, I would be talking to them about this. Find out who controls the purse strings and talk to them about when you are likely to get paid. Personally I would not have waited this long as there is nothing worse than financial pressure when you are starting out, especially when jumping from perm to contract. Money can run out very quickly.

So find out where invoices are sent to, who signs them off and actually pays them and then yes, get the invoice in to them straight away. Who hired you? If it is someone with some clout then explain the situation to them and see if they can ease the passage of this invoice through for you so that you get paid as soon as possible in Jan.

Good luck!

[ChickenWing]

This has to be the troll we seem to have attracted. No way is this a serious question.

Wow, you seem helpful and fun. Do you just wait for new threads to come up so you can post stuff like this? There are probably some local activities you could get involved in if you've got that much time on your hands, you know. Maybe try your local community centre.

I have no interest in justifying myself to you, but for anyone else who may be reading, this is a real question and I am not a troll.

[northernladuk]

This has to be the troll we seem to have attracted. No way is this a serious question.