Whether you’re a freelance fashion designer, architect, or beauty product designer, you need to pay just as much attention to the business side of your entrepreneurial venture as you do to the design side. After all, if there are discrepancies or disputes regarding things like pay or project milestones, it could potentially be catastrophic – affecting both your finances and reputation.
Therefore, don’t overlook the importance of having the right freelance documents to ensure smooth sailing. While you should consider the documentation that you need for your specific type of business, there are some essential documents that every freelance designer needs.
Standard Contract Agreements
As a freelance designer, it’s essential that you use a standard contract agreement with every client. This document will outline all terms and conditions – for all parties involved – in a clear manner. It should include things like pay rates, the timeline for project completion, who is responsible for different deliverables, and anything else that is relevant.
Your contracts should be crystal clear, free of jargon, and cover all potential bases that need addressing. Therefore, it’s best to get a legal professional to draft or look over your standard contract agreement before you and your client sign.
Remember: having a standard contract in place ensures fairness for both you and your clients. If anything should be disputed during the project, you’ll have the legalities down in black and white so that any discrepancies can be quickly resolved.
Pay Stubs
You’ll need pay stubs to keep a detailed log of all your income for tax purposes. Having paycheck stubs (which you can quickly make yourself) will also enable you to easily keep track of your business finances. In turn, you can ensure you don’t get into any legal troubles because you overlooked something – such as that late payment that you forgot to add to your month’s invoices.
To stay on top of your income – both for your sake and the taxman’s sake – don’t overlook the importance of creating pay stubs. When you need to prove your income fast, they will be invaluable.
Invoices
Before you create pay stubs, you’ll need to get paid by your clients. And to get paid, it’s essential that you craft invoices.
While it might be tempting to keep client invoices as simple as possible (such as just outlining the total amount owed), you really should drill down into more detail. If there are any disputes between yourself and your clients, it will be easy to check and resolve when you have a more detailed invoice.
Therefore, your invoices should include essentials like:
- A breakdown of all work completed.For instance, if you work as a fashion designer, detail every garment and accessory that your client has paid for over the duration of the project.
- A breakdown of all charges. For each deliverable, include the exact amount you charge the client.
- A total of all charges. With an easy-to-view list of all charges and a total to pay, both you and your clients can quickly check that all information is correct; which will lead to fewer issues and quicker payments.
- Dates. Don’t forget to add dates to specific deliverables (such as the date each item of the project was delivered to your client). And date the invoice as well.
- The payment due date. This is an important part of an invoice, as it ensures your clients pay for your services in a timely manner. You could request payment within, say, a period of one week, two weeks, or a month. Giving your client a week or two to pay is pretty standard.
Non-Disclosure Agreements
Depending on the specifics of your design career and the exact clients you onboard, you could need to use non-disclosure agreements. Freelance designers often overlook the importance of understanding various financial obligations related to taxes. As a self-employed individual, having a strong grasp of financial terms like understanding tax deductions is crucial. Knowing what you can write off not only saves you money but simplifies your tax filing process, ensuring you stay compliant with legal requirements. They’re essential for protecting both a freelancer’s and a client’s intellectual property and sensitive information. If you’re working for a big-name company or if your designs are hotly sought after and you’re worried about copycats ripping off your designs, NDAs are especially important.
Make sure that the NDA covers the legal ramifications of breaches and specific clauses to safeguard design concepts, client data, and project specifics.
As with creating a contract, it is a good idea to hire a legal professional to create an NDA or look over an NDA given to you by a client.
fellow freelancer here! life is not easy without doing your own research. I can agree on all of the above! double check