Why freelancers should avoid living check to check at all costs

While I haven’t had many problems getting paid by clients over the years, the occasional accounting snafu does arise. This week I’m dealing with a client who’s been all thumbs in the accounts payable department. (In their defense, a personnel change has led a few check-cutting hiccups.)

Fortunately I’ve had enough money in my account to cover the boo-boos. Still, I thought I’d share my Not Getting Paid Properly Hall of Fame with you. Curiously all these goofs happened during the December holiday season.

• Client who normally sends checks within 14 days of receiving invoice takes almost three months to cut me a check. This requires some prodding on my part. Check arrives unsigned by client. I fail to notice and race to deposit it. Bank returns check to me, unable to cash it. I’m left waiting for client to reissue a valid check. (Duh all around.)
• Long-time client accidentally pays me double the invoice. All on one check. Not wanting to embark on a life of crime, I let the client know. I tear up the check and wait for client to issue a new one. (Merry Chrismukkah. Not.)
• Another December, another long-time client insists that I bill them in advance for work I’m slated to do the coming January. Something about having to pre-bill their client. When the project scope shrinks, I wind up having to reimburse my client a couple thou. (Don’t try this at home. Just as stupid and painful as it sounds.)
• My personal fave: My check arrives in an envelope stuck to the adhesive of another envelope addressed to and containing a check for another freelancer. Clearly an automation goof. Rather than send the poor guy’s check back to the client, I Google him, let him know, and drop it in the mail to him. (A Christmas miracle!)

This probably goes without saying, but impeccable accounting records (via Excel, QuickBooks, or the program of your choice) are a must if you’re even going to catch this stuff (save for the sig-less check).

So what about you? Any stupid payment tricks/accidents on the part of your clients you care to share? Please don’t name names, unless you want to pay my legal fees.

6 comments March 5th, 2008