As traditional employment fails to meet the demands of modern lifestyles, especially in the post-COVID-19 era allowing remote work, individuals seek stability through independent careers or freelancing. This trend, popular in 2024, includes roles such as influencers, product reviewers, and online sellers.
Today, Sixtygram presents an article titled ‘Want to be a Freelancer: What Important Documents Do You Need?’ This article covers essential documents like quotations, invoices, billing notes, and receipts. It serves as a valuable resource for those embarking on a freelance or independent contractor career, where direct employer contact is common. Understanding these important documents is crucial for creating contracts that span from the initiation to the completion of work, enhancing credibility in one’s freelance career. Here are some important documents that freelancers should be familiar with:
Let’s explore the interesting trends!
1. Quotation
For a successful and seamless start to your work, we recommend issuing a quote to your client or employer. A well-detailed quotation enhances credibility, especially if your service comes at a higher price. Providing a written price quote serves as evidence, instilling trust in the customer and serving as a useful reference. The contents of the quotation document should include:
- Company details, including your company logo. If you are a freelancer without a registered company, you can enter your name directly.
- Include company name, address, and tax identification number for both the business owner (freelancer or service provider) and the customer (employer).
- Specify contact names, emails, telephone numbers, and the campaign or project name clearly.
- Clearly indicate payment terms or credit terms if applicable for customers’ awareness.
2.Invoice / Billing Note
When the freelancer completes the quotation document, the subsequent step is to generate an invoice or billing document. This financial document is crucial for freelance work acceptance, serving to notify the client of the agreed-upon payment amount and the due date. It is employed to communicate the payment details, whether it is for collecting the payment after the completion of the work, securing a deposit initially, or collecting money in installments based on the work’s success.
Advice: It’s advisable to prepare both an original and a copy of every bill or invoice for a customer. Ensure the customer signs the invoice each time and keeps a copy for their records with us.
3. Receipt
A receipt serves as a crucial document confirming to the customer that the payment has been received by us or the service provider. Issuing a receipt is not only good practice but also a legal obligation. The law mandates the immediate issuance of a receipt to the other party, regardless of whether they request it or not. It is essential to provide a receipt after receiving money for accounting and tax purposes. This documentation is particularly important for service businesses registered for VAT, enabling the issuance of a tax invoice or receipt. Payment should be received upon completion of the work from the customer.
Refusing to issue a receipt, conspiring to prevent its issuance, or delaying the issuance upon receiving money or payment can result in being found guilty. Penalties may include fines or imprisonment for up to 1 month, as outlined in Section 127 bis of the Revenue Code.
When pursuing a freelance career, meticulous examination of all documents is essential for instilling confidence and trust in customers. Additionally, it helps in maintaining a record of income information, creating a mutually beneficial arrangement. For those interested in online document issuance, platforms like Flowaccount and Peak are worth exploring.
