Why freelancers should avoid living check to check at all costs
March 5th, 2008
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.
Entry Filed under: Money honey, This freelance life
6 Comments Add your own
1. Mir | March 5th, 2008 at 4:39 pm
Ha! I especially liked your Christmas miracle one — the fact that you sent it directly probably saved that guy from a similar (waiting) fate.
I wrote about an overpayment check snafu about a month ago, and coincidentally I just got the proper payment yesterday. Good thing I wasn’t needing that check for groceries, or anything.
2. Michelle Goodman | March 5th, 2008 at 7:57 pm
Mir, wow, now THAT’s a snafu! Extra zeroes?! Man!
3. Amanda Strong | March 12th, 2008 at 6:23 am
Just recently (like January) I had a client give me a check (on a Friday) and ask that I not cash it until Monday. I deposited it on Wednesday.
The check was returned.
I contacted client. She apologized and said she had made a big purchase over the weekend and forgot that she had written me a check a day earlier.
Ok.
She’s to drop a check 2 weeks later when she gets paid.
The check never comes.
And a week later?
Still check-less.
I called and e-mailed and called again having one way conversations with myself about how I had already paid the printer and needed the money ASAP…
I received a host of excuses and lame lies not personally but through text messages and voice-mails. This lady was trying hard to avoid me.
Finally, a month later (and after the original invoice deadline) she promised to drop the money by my house. She never showed. I finally had to threaten legal action if she didn’t pay me within 24 hours. Fortunately I was paid (not in cash or cashier’s check as I specifically requested) but by check. A check that wasn’t even dated for the day she dropped it off, but for the following day. Classy.
My freelance has mostly been small projects like invitations, wedding programs, etc commissioned by friends and friends of friends… I have learned that I should now take a deposit and look into how I am paid (check? cashier’s check? cash?)…
4. Michelle Goodman | March 12th, 2008 at 9:06 am
amanda, sorry about the client nightmare. i’m glad you finally got paid. i’m sure you’ve written that client off. if not, don’t accept her calls in the future (unless the check bounces!).
requiring a 50% deposit is smart. if someone doesn’t have the money up front, they’re not likely to have the money on the back end either.
i would stick with checks or credit card; here’s a post on the pros/cons of using paypal. while cash or cashier’s check works well for you, it’s not too standard in the world of business transactions and may sound hinky or small-time to your clients. why don’t you see how/when other designers get paid (see their site FAQs, or ask them) and model yourself after that…
5. Michelle Goodman | March 12th, 2008 at 9:10 am
oops, if i wasn’t clear above, i meant, “i would accept checks or credit cards as payments; paypal makes it easy to accept credit card payments. but before you do, read this post on the pros/cons of using paypal.”
6. Melissa | March 27th, 2008 at 9:05 am
i dont think i’ve had any instances when the client gave me a bad check or tried to send one unsigned, but i have had multiple clients ‘forget’ or say they mailed it when they obviously didnt. best way to get the check? (this only really works for online work) Tell them that you’ll take down their site or not be able to do any further site updates until the check is in your hands. In both instances when i did this, i got the check overnighted and had it the next day.
i hate to play ‘hardball’ tho…. why can’t they just pay? i did the durn work!
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