Your tax responsibilities as a freelancer can be a hassle, but at least they mean you're making money via your self-employment venture. But what about those clients who ignore your invoices? Here are some ways to deal with problematic payers.
Welcome to my world!
Overall, I highly recommend the self-employed life that involves a variety of clients. Even when you specialize like I do, you still get an interesting array of assignments.
The only drawback is when you get a client or two who, how shall I phrase this, is a deadbeat.
Promises that the check is on the way don't pay the mortgage. Excuses as to why the check isn't yet on the way won't cover the utility bills. And avoiding me as I try to find out where the heck is the check definitely will not put food in the refrigerator.
Dealing with and avoiding deadbeats: So what do you do when a client won't pay or is chronically slow about compensating you for your freelance services?
That question prompts a dual Saturday Shout Out this week.
First, there's advice on getting the money that you're due.
Then there's advice on how to avoid being in this situation in the first place.
Thanks Scott and Arden. Your advice is good for all us veteran freelancers, as well as newbies to this work style.
You also might find these self-employment tax posts interest:
- 4 tax tips for new businesses
- The importance of good, and separate, business records
- Constructively received income, or what tax year applies to late-year payments?