Whether you’re a freelance artist, performer, or creative professional, understanding how to create an invoice is crucial for maintaining a successful business. So, grab your notebooks and let’s get started! You can also grab a template from the link at the bottom of this post.
Picture this: you’ve just completed a fantastic performance, the crowd loved it, and now it’s time to get paid for your hard work. This is where creating an invoice becomes essential. Not only does it help establish your worth, but it also sets up a sense of reciprocity between you and your client.
As an artist, it’s important to know your market value and be confident in it. However, negotiations are a reality in the business world. If a smaller company has budget constraints, you might consider negotiating a lower rate while maintaining your reputation. Remember, it’s about finding a balance between your value and meeting the needs of your clients.
When it comes to calculating fees, transparency is key. Start by determining your standard rate per session or project. This will serve as your anchor to establish your market value. If you choose to offer a discount, calculate the full cost of the project at your standard rate and then apply the discount to reach the agreed-upon amount. This way, both parties know the value they are receiving.
SO what are the essential details that should be included in your invoice. The Australian Business Number (ABN) is a must-have. Providing your phone number, email, and postal address ensures that your client can easily reach you for any follow-up. Include the recipient’s name, contact information, and, if applicable, their ABN (if the amount exceeds $1000).
Your invoice should bear a unique identifier, such as an invoice number. You can base your invoice number system on the financial year (e.g., 22, 23 for the current year) or just set a prefix and number up on each invoice. Specify the date of the transaction and indicate the type of work performed. Be clear about the fee type, whether it’s a day rate, weekly rate, or project rate.
As much as we enjoy being artists, getting paid is equally important. Clearly state your payment terms on the invoice. Ideally, this should be within 7-30 days, depending on your agreement with the client. Additionally, providing your bank account details on the invoice for direct deposit makes the process streamlined and efficient.
:When it comes to creating the actual invoice, you have multiple options. Some artists prefer using Word and exporting it as PDF to maintain a professional appearance. Alternatively, there are various invoicing software and online templates available that can make your life easier. It all comes down to personal preference and what works best for you.
You do not have to register for GST unless your annual turnover exceeds $75,000. Be sure to check the latest guidelines on the ATO website or consult with a tax professional to stay compliant with the latest regulations.
Creating an invoice is an essential skill for any artist or creative professional, and understanding the process is crucial for running a successful business. Now armed with the knowledge of invoicing in Australia, you can confidently present your clients with professional invoices that reflect your worth and establish a sense of reciprocity. Happy invoicing!