Having regular, reliable payment agreements in place is one of the main attractions for freelancers and if your business relies on their talent regularly, having a seamless payment process in place will be key.
Businesses can often spend a lot of time and resources into managing payments which only becomes more complex the more freelancers your business hires. Thankfully, there are a few variables to consider when it comes to paying freelancers including rates, payment terms and even currency.
Why Having A Process For Payments Is Important
If you regularly work with freelancers, the chances are you’ve already experienced some issues around invoicing and payments. There’s often an understanding from a freelancer's perspective, that they’ll keep a regular record of their time using timesheets each week before they invoice you for a payment to be signed off and completed. This process alone can result in a bit of back and forth to get the payment signed off and completed, taking up time and resources internally.
From a business’s perspective, someone has to check for any issues or discrepancies over rates, time spent and of course making sure the task is complete. Again, If there are any issues there is a potential you’ll need to spend time communicating the issue to get to a resolution. Having a clear payment process in place within your business helps everyone involved understand what they need to do to get paid. When onboarding freelancers, it’s important to let them know what to expect when it comes to raising invoices and tracking their timesheets so they’ll know what to expect and reduce the time spent disputing or fixing any errors.
If your business is looking to streamline it’s payment processes when it comes to handling freelancers and the admin, there are some great tools on the market to help manage the admin side including accurate time-keeping and seamless regular payments.
How Freelance Management Systems Help With Freelance Payments
There are now thankfully some great freelance management tools in place to help the challenges businesses face by handling all aspects of paying freelancers. Management systems handle things like timesheets and can make sure freelancers are paid on time, helping to reduce any mistakes or issues around payments.
They can also simplify billing for your finance team, enabling you and the team to focus on the task in hand.
The right Freelance Management System also help businesses with:
1. Attract And Retain Freelancers
Any issues around payments can potentially damage relationships with talented freelancers, who may then be reluctant to work with your company in the future.
Our own Freelancer Management System pays your workforce covering:
- Gross payments and outside of IR35 payments
- Inside IR35 payments are taxed at source with tax deductions made and passed to HMRC.
This significantly helps Improve your relationships with freelancers, in turn helping to retain them.
2. You’ll Work With The Best Remote Talent - Wherever They’re Located
Working with the right freelance management system also gives you the ability to work with the best freelancers, wherever they’re located and in whatever currency they work in. This gives your business the competitive edge as you’re no longer held back by an inability to pay a freelancer in their own currency.
3. Reduce Costs By Automating Payments
If you’re handling freelancer payments manually, you could be incurring additional processing fees. This becomes more costly, the more freelancers you work with. By automating payments, you’ll significantly reduce costs making your internal operation processes more efficient.
4. Save Time On Payment Admin Tasks
Your management and finance teams can spend a lot of time reviewing invoices, manually paying and auditing them. The right freelance management system can ease this pressure by allowing freelancers to raise timesheets and log invoices. This then means your team simply needs to approve them before they’re paid.
Using a platform like YunoJuno will also allow you to raise just one consolidated invoice to pay all the fees, regardless of how many freelancers you work with. This frees up your team's time and gives a full audit trail of what you have paid freelancers and when.
Why not book a demo with our team today to find out more about how the YunoJuno FMS platform can support you and your business.