Freelancing is an outstanding business for those who love to work in the comfort of their own space and who want to work on their own terms. However, after the GST, freelancing has to face certain tax-related difficulties. Although tracking the freelancing business which is usually conducted online is difficult, whether it is all about delivering work or receiving payments, the government has concluded a way out to track down the payments of freelancing businesses on the basis of interstate and intrastate delivery of work. It is mandatory to follow the rules made by the GST Council, at the same time, freelancers need to find out ways so that their work doesn’t get affected after GST roll-out. In this post, we discuss the ways in which freelancers can tackle the after-effects of GST. Take a look.
- Set up Contracts
After the GST roll-out, it has become difficult for the freelancers to trust the clients regarding the payments. Therefore, it’s easier to tackle such situations if you create a contract and take the payment on a quarterly basis. This way, your problems, and doubts will be cleared. Make sure that the contract you have made clearly defines that each party agrees to the terms and conditions and at the same time you are authorized to take an action against the clients if they refuse to pay the amount after receiving their work.
- Diversify Your Services
Make sure that you choose multiple clients for your work so that if at some point in time, one of the plans to discontinue the work, you have others to deal. Diversifying the services is the most helpful way to protect your freelance business after any major change in the taxation or country. You can also hire some people if you think you are unable to handle a group of clients at once.
- Work in Installments
If you think there are bigger projects or clients and you want to protect your work from being discontinued, do the job in installments and ask them to pay the portion of it. This way, you won’t lose your client in the long run and will get paid on a certain term basis. Most freelancers are adopting this criterion to work so that they did not lose anything at the end of the project.
- Make Invoices Understandable
As we are aware of the fact now, every business needs to generate invoices at the end of every month, freelancers also need to do so. Invoices are easy to understand as they consist a proper breakdown of all the work done. It is also a good way to protect your business and show the experience to other valuable clients. Make sure your invoices are clear and easy to understand. Receive payments using online portals so that it is easier for the clients to pay.
- Take Action against Non-paying Clients
Once you have completed your work and submitted it to the client, you need to get your payment. If in any case, the client refuses to pay you the committed amount, you must take an action against him/her. All you need to do is send a certified letter which states a request for payment. Keep records of texts, phone calls so that if you end up in court, you have all the valid proofs along with you against the client.
The Last Word
After the introduction of GST in India, the market has become delicate and difficult to understand and so is the freelancing business. However, now the things have been in control over time. Following these tips, one can easily handle the after-effects of GST. All you need to get is a little bit of assurity of payments and security of your work.