When the production is complete (or according to your agreed terms), you should submit an invoice to the client. This invoice should include the total amount due and explain any overtime or additional expenses. In addition, the invoice needs to state the payment terms (usually 15 or 30 days). The best advice is to use an accounting program such as Intuit QuickBooks to organize your income, money due, expenses, etc. These programs will help you to create invoices, track payments and generally organize your accounting. If you work with an accountant, you can then provide him with the computer file and he can easily get a full record of your business. Probably the biggest question for freelancers is how to represent themselves. There seems to be many options, and the most popular tend to be: Under the table, self-employed, corporation and limited liability corporation (LLC). Other variations include sole proprietorship, partnerships and temporary employment. Each has their own benefits and limitations, and it is important that you study them all to determine the best choice for you.
– From Brad Schiller’s Feeding the Machines column in the December issue of PLSN
