As a freelancer and agency, you know that tracking time for clients can be tedious. Having a lot of clients can sound great, but managing invoices takes away from working time. Even the most experienced freelancers can run into problems with scope of work and billing.
We have all been there set up a recurring invoice and then overworked the hours we have been retained for. Then we either forget or find it too hard to bill the client for the extra work.
Thanks to Freshbooks new retainer feature this is a headache freelancers and agencies no longer need to have.
For FreshBooks customers on Plus or Premium plans, there’s a new option to help you manage billing: Retainers. Retainers are an excellent solution to problems with chasing payments, scope creep, and awkward conversations about money.
With the Retainer feature in Freshbooks, billing clients on retainer means you can bill in advance for a fixed amount each month.
For example, if you charge $30 per hour the retainer would be $300 for ten hours.
By the end of the month, if you have worked more hours than retainer amount, Freshbooks will help simply invoice them for the excess time tracked.
OR If you work slightly less than the retainer hours, the surplus won’t carry over. FreshBooks will restart your Retainers at the beginning of the month.
Retainers vs. Recurring Invoices:
Retainers connect all of your billing, time tracking, and reporting in one easy place. There is no more need to use multiple tools or search through chains of emails. Plus, Retainers automatically manages billing so you don’t lose money.
Even though recurring invoices are automatically sent to clients, they require a lot more attention. These bill the hours worked each month. This means having to leger different amounts throughout the year, making profits seem unpredictable.
Retainers also ensure that your business is profitable. Now that payments all arrive at the time you choose, your client conversations can focus on work. Using this tool allows you to set clear expectations with clients. Before work even begins, you are now both on the same page about billing and overtime. Awkward conversations avoided!
Now you can collect recurring client payments, track hours against the allotted time and avoid scope creep.