Back in 2016, the Freelancers’ Union issued a report regarding a problem that many freelancers are encountering even today. This issue is about unpaid invoices; and while it may be unfortunate, it can be avoided easily. The cost of nonpayment is massive as it can affect not only the earning rate of freelancers, but it can also put a dent into the relationship between them and their clients. This constantly lingering problem in the freelance world is certainly an issue that cannot be ignored. Fortunately, a lot has changed in terms of the options that clients have when it comes to paying invoices. Now, both the client and the freelancer can use billing companies like ReliaBills. These firms can help manage your account payables, as well as notify you whenever an upcoming invoice is due for payment.
The Facts About Unpaid Invoices
In 2014, the Freelancers’ Union surveyed over 5,000 freelancers to determine the percentage of nonpayment and the overall effect that nonpayment issues have on the freelance community. According to the results of the study, 50%, or 2,500 of those surveyed, experienced nonpayment at least once in their freelancing career. In addition, the average total loss for their nonpayment averaged approximately $6,000 per year, which amounts to about 13% of the average freelancer’s income. What’s more, concerning is that the employment and labor laws give these freelancers little recourse short of pricey and time-consuming litigation. The study also found that 71% of those surveyed freelancers experience difficulty in collecting payment for invoices, which can be quite costly as time progresses.
According to Freelancing Hacks, 43% of the U.S. workforce is currently comprised of freelancers. That’s almost half the total population of people who are working in the country. In addition, freelancers also contribute $1.4 trillion to the country’s economy every year. Even if we don’t crunch the actual numbers, the issue of unpaid invoices costs the freelance industry billions of dollars. That’s certainly an alarming rate, to say the least. That’s why it’s time we change the trend and minimize the instances of unpaid invoices once and for all. That can only be done once both clients and freelancers start using billing companies.
Changing the Trend
Nonpayment is extremely costly for freelancers, especially since their income is solely based on the payment of the invoices from their clients. They are the sole proprietors, depending on the work they can produce. Nonpayment is also costing thousands in bank changes, missed bill payments, collection costs, and other issues that arise as the result of poor client payments. So, while it may be added costs to your end, hiring a billing company and using their services will greatly help in ensuring that you get paid as per schedule. That feature and assurance alone make it a worthwhile investment and an absolute necessity for any freelance business.
Putting Your Trust in ReliaBills
ReliaBills is an excellent example of a firm that provides that kind of service. Their system in terms of helping you process and manage your invoices is the reason why their services are worth the investment. ReliaBills can create professional invoices and keeping track of them. They can also send you updates, as well as updating invoices with interest for nonpayment. Overall, ReliaBills creates a streamlined process for your accounts receivables. That way, you will have a fool-proof and hassle-free method of processing and receiving payment.
Here’s a Fact:
The easier you make it to pay, the more likely you are to get paid. Many freelancers do not have access to credit card processing and may only accept check, cash, or PayPal. As a result, it is often less convenient to pay a freelancer’s bill than other bills that a company receives. ReliaBills come with a fully integrated merchant account system that allows a client to process a payment on an invoice anytime, anywhere. They can also handle the credit card processing of your company. As a freelancer, this lets you appear as a larger organization while still maintaining the integrity of your work.
We can’t deny that due to our busy schedule, we tend to forget crucial tasks like paying our invoices and reminders need to be sent. Sometimes customers forget to make a payment, and the invoice slips through their accounts payables and accumulates over time. Because freelancers are working independently, they often forget or do not have time to conduct the proper follow-up with those customers. Therefore, these tasks should be left for professional billing firms. ReliaBills can help you with everything you need to pay and get paid. They can set up automated emails and reminders to contact clients and help get bills paid on time. Relying on a company like ReliaBills will drastically reduce nonpayment for freelancers and help make freelancing profitable for you again.
Contact ReliaBills for more information on how they can help your freelancing business work for you at 877 93BILLS or via email at sales@reliabills.com.
