Reply to: Need advice

[fidot]

I don't think raising your own invoice is 'keeping on top of cashflow'. Unless you deliver the invoice by hand every week, you're still relying on automation to get the invoice in front of the client/ agency, it's just a type of automation that you're more familiar and comfortable with - but not necessarily a more reliable one.

There are less steps in the process with self-billing and that has to be a good thing. What if you got hit by a bus between submitting your timesheet and raising the invoice? Unlikely, but from someone who's just spent 4 weeks in hospital, it was one less thing I needed to worry about.

This is your experience of self-billing systems and I am glad you have never had a problem. I'm not saying my preferred approach is flawless - it's just my preference.

I am just pointing out a potential flaw with sell-billing systems that some may not have thought of. This isn't just a theoretical flaw - I saw it happen to a fellow contractor. We were both paid late. I was able to claim interest and compensation (see The Late Payment of Commercial Debts Regulations 2013 - Pay on Time). My fellow contractor wasn't able to because no invoice had been raised so it wasn't late.

[MrMarkyMark]

I did ask them today if I can get weekly pay. The answer was , if we do that it means we have to pay you from our cash flow, so the answer was no

Lesson learnt though

How do they look when you do a credit check?
Are they sailing close to the wind?

[Contractpf]

I did ask them today if I can get weekly pay. The answer was , if we do that it means we have to pay you from our cash flow, so the answer was no

Lesson learnt though

[Contractpf]

Does the agency name end in "phen"?
If so, hope you had the contract reviewed they are notoriously poor.
In any case you should have negotiated this, as them having pretty much 6 weeks money in thier hand is a concern.



Exactly this, very, very common.

Thank you. Looks like it's a different agency. You are right though 6 weeks with money in their hand is a concern

[JRCT]

Each to their own. Glad your method works for you. I prefer to keep on top of cashflow by raising my own invoices.

I don't think raising your own invoice is 'keeping on top of cashflow'. Unless you deliver the invoice by hand every week, you're still relying on automation to get the invoice in front of the client/ agency, it's just a type of automation that you're more familiar and comfortable with - but not necessarily a more reliable one.

There are less steps in the process with self-billing and that has to be a good thing. What if you got hit by a bus between submitting your timesheet and raising the invoice? Unlikely, but from someone who's just spent 4 weeks in hospital, it was one less thing I needed to worry about.

[fidot]

You sound like my gran when she said she would never accept a toilet inside the house.

I'm on self-billing and when my timesheet is signed, I get an email to tell me that an invoice has been raised. If I didn't receive that email then I would chase it up, but it's never happened.

I think you need to come in from the cold, grandma.

Each to their own. Glad your method works for you. I prefer to keep on top of cashflow by raising my own invoices.

[JRCT]

The problem with self-billing is that, if, for some reason, the self-billed invoice doesn't get raised, it is hard to claim interest and compensation if/when the agency is late in paying (because the invoice hasn't been raised so can't be overdue).

For this reason, I have never accepted self-billing.

You sound like my gran when she said she would never accept a toilet inside the house.

I'm on self-billing and when my timesheet is signed, I get an email to tell me that an invoice has been raised. If I didn't receive that email then I would chase it up, but it's never happened.

I think you need to come in from the cold, grandma.

[MrMarkyMark]

hi. Started contracting for the first time via an agency. Their terms of payment are an invoice to pay me is generated when I submit my 4th time sheet. I will then get paid within 10 working days of submitting my time sheet. Is that normal for an agency to do that? Thanks in advance

Does the agency name end in "phen"?
If so, hope you had the contract reviewed they are notoriously poor.
In any case you should have negotiated this, as them having pretty much 6 weeks money in thier hand is a concern.

I wouldn't assume this. B2B can be up to 90 days billing

Exactly this, very, very common.

[ceebeepps]

ok so similar to my situation.
my contract states invoice weekly, 30 days payment terms
self billing via agency.
I however generate my own invoices dated on the timesheet submission date, add 30 days, and expect payment by then.
Fortunately i am paid on time usually 28 days from MY invoice / timesheet submission date, but i will say that the agency change the invoice date on their invoice to their payment run date (so it appears in their accounts that they are running 5 day payment terms.
this created great confusion for me in my accounts and over year end, so upon accountancy advise and as per my contract i create my invoices and record the invoice date in my accounts and for VAT purposes as MY invoice date, not the self billing.
I hope this helps.

exact example:
timesheet submitted 4/9
my invoice dated 4/9
Self bill invoice date 1/10
Payment received 8/10

[fidot]

The problem with self-billing is that, if, for some reason, the self-billed invoice doesn't get raised, it is hard to claim interest and compensation if/when the agency is late in paying (because the invoice hasn't been raised so can't be overdue).

For this reason, I have never accepted self-billing.

[northernladuk]

Thank you for your replies. Yes the invoices are submitted weekly, on a friday , 4 weeks in arrears. However I do not bill them its agency self billing. So it seems I only get paid when the client has paid them.

I wouldn't assume this. B2B can be up to 90 days billing and part of the agents role in all this is to factor payments so you are not exposed to the same payment timescales. You could be right but it's not a given.

[Contractpf]

Thank you for your replies. Yes the invoices are submitted weekly, on a friday , 4 weeks in arrears. However I do not bill them its agency self billing. So it seems I only get paid when the client has paid them.

[ceebeepps]

are you generating your invoices and sending them or is the agency self billing?

you have described similar to my situation at present, which is weekly invoicing and 30 day payment terms, but without having a detailed example of a) timesheet submitted date b) invoice date c) payment date I'm afraid i couldn't really comment.

What are your payment terms in your contract and do they match the ageing and payment you are experiencing?

[stek]

hi. Started contracting for the first time via an agency. Their terms of payment are an invoice to pay me is generated when I submit my 4th time sheet. I will then get paid within 10 working days of submitting my time sheet. Is that normal for an agency to do that? Thanks in advance

Always negotiate weekly payment terms, that way if the agency goes tits up you only lose a weeks dosh not a months otherwise.

[fidot]

Are time sheets completed weekly?

Is invoicing every 4-weeks or weekly, starting 4 weeks in arrears?

Payment terms of 10 days isn't too bad.

Also, if you've already started the contract, it's a bit late to be worrying about the terms of the contract. For future reference, if you don't like the payment terms, negotiate.