Typophile

S.O.S. Client wants invoice

Claire Bibio

hi, hi!!!! i'm very anxious. sometimes ago i did a job for a local gallery and now when it's time to pay they would like an invoice. i have never done this type of thing. how do i make the invoice. please help me. do i design it myself. can you show me some examples of your invoices if you have please please, thank you so much!!!!!!!!!!! ok bye.

Claire, I’m not familiar with the rules outside Norway, but here you need to have (or be part of) a firm to make an invoice. You also need to state your address and business information (organization number & name), the customer’s address and list the items and/or services purchased and/or licensed and specify their price and any additional taxes and fees. You’ll probably also want to include some information on how one can pay you (account number, IBAN, BIC, bank name, &c). Each invoice must have a unique number (invoice #0001, invoice #0002 etc), and these must be generated by an automated system. The invoice must be in a read-only mode. I use a web service to make mine, and often provide a translated copy for international customers.

I suggest you contact an accounting office to ask about what rules apply to your situation.

Claire, an invoice is just a bill. A Google search will show you many sample invoices.

Things may be different in your country, but in the U.S. an invoice doesn't have to use a specific design. I've received invoices from individuals that were just emails, or were just handwritten on a plain sheet of paper. But if you want the invoice to look more professional you can use a pre-printed invoice form (available at office supply stores or on the internet) or design your own, and then either mail it to them or send as a PDF attachment. Here's the info on a typical invoice:

Date: today's date

From: your name and mailing address

Identification: In some countries you may need to list a government identification number for yourself, for tax purposes. A local business person or accountant (or maybe even a librarian) could tell you if this is necessary where you live.

To: name and address of the company or person you are billing

Description: Describe what the bill is for, and list the price. Be specific in your description so they clearly know what the bill is for. Also list taxes, if appropriate, and then a grand total.

Payment Instructions: I'm guessing the gallery will just mail you a check, so say "Make check payable to [your name or business name]." If they want to pay you by electronic funds transfer, you'll need to give them the appropriate bank info for that.

Reference Number: Each invoice should have a reference # of some kind. You could call it "Invoice #001". Or if you don't want to reveal that this is your very first invoice, number it #501 or pick some other number.

Terms: State when the bill is due (30 days is typical in the U.S.) and tell if there are any penalties for late payment.

(30 days is typical in the U.S.)
State whatever you want, but 30 days stopped being typical in the U.S. a long, long time ago.

> 30 days stopped being typical

Most invoices I receive say 30 days, and I believe it's still pretty common nationwide. But if you mean that most companies take longer than 30 days to actually pay, I agree.

Unless you stated it in your contract, the 'due on x' is fairly arbitrary...especially if your client is a big company. They'll pay when they're ready to pay, unfortunately.

You can declare interest after x days. How well you can enforce it is another issue.

For most of my clients (that I have a good relationship with) my invoice is typically just an email:

Subject: Invoice for (work description)

date: xx/xx/xx
description: (what the work was)
amount: $x @ x hours = TOTAL

And then add my address for payment.

Looks like moving abroad might save me some hazzle :)

This is the text of my invoice, which is more or less the text recommended by the Graphic Artists Guild. Of course, for most of this to be applicable and.or enforcible, you need a similarly worded contract to begin with. Oh, and in the process of copying this, I noticed a typo. So thanks, Claire, for giving me a reason to look over my invoice.

FRONT:

CONTACT INFORMATION
Contact name:  
Company:  
Position:  
Address:  
E-mail:  
Phone:  

ASSIGNMENT DESCRIPTION
Date:  
Assignment number:  
Delivery date:  
Commissioned by:  
Purchase order number:  
Materials supplied by:  

DESIGN FEES
Conceptualization:  
Execution:  
Development:  
total design fee:  

HOURLY SERVICES
Typesetting (English):  
Copywriting:  
Photoshop work:  
Typesetting (other):  
Proofreading:  
total services fee:  

EXPENSES
Client shall reimburse the designer for all expenses.
Illustration:  
Photography:  
Typefaces:  
Models and props:  
Materials and supplies:  
Messengers:  
Copies:  
Printing:  
Client’s alterations:  
Toll telephone calls:  
Transportation:  
Shipping:  
Other:  
total expenses:  

total fee due to designer:  

RIGHTS TRANSFERRED
The Designer transfers to the Client the following exclusive rights of usage:
Title or product:  
Category of use:  
Medium of use:  
Edition:  
Geographic area:  
Time period:  

Any usage rights not exclusively transferred are reserved to the Designer. Usage beyond that granted to the Client herein shall require a mutually agreed-upon additional fee subject to all terms. Any transfer of rights is conditional upon receipt of full payment.

BACK:

1. Time for payment
All invoices are payable within 30 days of receipt. A 11⁄2% monthly service charge is payable on all overdue balances. The grant of any license or right of copyright is conditioned on receipt of full payment.
2. Default in payment
The client shall assume responsibility for all collection of legal fees necessitated by default in payment.
3. Expenses
The Client shall reimburse the Designer for all expenses arising from this assignment, including the payment of any sales taxes due on this assignment,.
4. Changes
The Client shall be responsible for making additional payments for changes requested by the Client in original assignment. However, no additional payment shall be made for changes required to conform to the original assignment description. The Client shall offer the Designer the first opportunity to make any changes.
5. Cancellation
In the event of cancellation of this assignment, ownership of all copyrights and the original artwork shall be retained by the Designer, and a cancellation fee for work completed, based on the contract price and expenses already incurred, shall be paid by the Client.
6. Ownership and return of artwork
The Designer retains ownership of all original artwork, whether preliminary or final, and the Client shall return such artwork within 30 days of use unless indicated otherwise below:

7. Credit lines
The Designer and any other creators shall receive a credit line with any editorial usage. If similar credit lines are to be given with other types of usage, it must be so indicated here:

8. Releases
The Client shall indemnify the Designer against all claims and expenses, including reasonable attorney’s fees, due to uses for which no release was requested in writing or for uses that exceed authority granted by a release.
9. Modifications
Modification of the Agreement must be written, except that the invoice may include, and the Client shall pay, expenses that were orally authorized in order to progress promptly with the work.
10. Uniform Commercial Code
The above items incorporate Article 2 of the Uniform Commercial Code.
11. Code of Fair Practice
The Client and Designer agree to comply with the provisions of the Code of Fair Practice.
12. Warranty of originality
The Designer warrants and represents that, to the best of his knowledge, the work assigned hereunder is original and has not been previously published, or that consent to use has been obtained on an unlimited basis; that all work or portion thereof obtained through the undersigned from third parties is original or, if previously published, that consent to use has been obtained on an unlimited basis; that the Designer has full authority to make this agreement; and that the work prepared by the Designer does not contain any scandalous, libelous, or unlawful matter. This warranty does not extend to any uses that the Client or others may make of the Designer’s product that may infringe on the rights of others. Client expressly agrees that it will hold the Designer harmless for all liability caused by the Client’s use of the Designer’s product to the extent such use infringes on the rights of others.
13. Limitation of liability
Client agrees that it shall not hold the Designer or his agents or employees liable for any incidental or consequential damages that arise from the Designer’s failure to perform any aspect of the project in a timely manner, regardless of whether such failure was caused by intentional or negligent acts or omissions of the Designer or a third party.
14. Dispute resolution
Any dispute in excess of $8,000 arising out of this Agreement shall be submitted to binding arbitration before a mutually agreed-upon arbitrator pursuant to the rules of the American Arbitration Association. The Arbitrator’s award shall be final, and judgment may be entered in any court having jurisdiction thereof. The Client shall pay all arbitration and court costs, reasonable attorney’s fees, and legal interest on any award of judgment in favor of the Designer.

thank you so much guys...about contracts. i never did contracts, but im thinking of doing from now on. so what are your suggestions on that; like what should be in it and everything else. any online links? i'd like to see examples from other freelancers. thank you, thank you very much!!!!!!!!

Don't forget taxes! Depends on the country's rules, but you might have to add VAT. In Finland one can sell handicraft items, art and design up to certain sum, but after that VAT has to be paid for the whole sum, so it's important to be able to estimate the whole year's billing.

I started using contracts when someone took a brochure I designed for them, put it on a billboard, and didn't pay me for the additional use. My favorite part of the contract is this fantastic bit here:

————————
RIGHTS TRANSFERRED
The Designer transfers to the Client the following exclusive rights of usage:
Title or product:  
Category of use:  
Medium of use:  
Edition:  
Geographic area:  
Time period:  

Any usage rights not exclusively transferred are reserved to the Designer. Usage beyond that granted to the Client herein shall require a mutually agreed-upon additional fee subject to all terms. Any transfer of rights is conditional upon receipt of full payment.
————————

What this section does is makes it clear that you grant the client only the right to reproduce your work in a certain medium for a certain amount of time, and that you are NOT selling them the copyright to the design itself. Because graphic design is technically not copyrightable in the first place, you need to kind of invent your own copyright protection, which you do by including the above section in a contract. It also says that the client does not have the legal right to use your work until they've paid you, which is nice.

(By the way, my source for this wording is the Graphic Artists Guild, which publishes a "handbook" of sample contracts for all occasions.)

Claire, something I want to mention is that in addition to any legal statements you want to make in the contract, it's also an opportunity to make sure that you and your client have similar expectations about the job, in order to prevent misunderstandings or disputes later.

It's a place where you can state 1) what services you intend to provide, 2) what your charges will be, and 3) what the project's schedule will be. Even if you've already discussed these things verbally with your client, putting them in writing and having your client sign off on them is a good idea.

If you and your client are in agreement on those things BEFORE the work begins, it will greatly reduce the chance of problems later.

thank you guys, i've learned so much. it's like im taking classes at university but for free :)

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