(STL.News) The self-employed business owner is a very different breed. For one thing, they can be their own most demanding client! Part of being your own boss means that you have to work hard at keeping yourself happy and engaged consistently.
The last thing a business owner needs to worry about is what might happen if a client doesn’t pay on time -or at all. Clients who don’t pay usually indicate that their business is struggling, and it can be tough to tell if you should continue working with a client when it’s unclear how they’ll pay you.
In general, clients who struggle financially are likely to experience cash flow issues throughout the year, making it extra important for self-employed business owners to collect on outstanding invoices.
A client’s finances can turn on a dime, and they may be able to pay you one week but skip out the next, which begs the question: should you ask your clients for a pay stub?
Generate Pay Stubs
What should you do if you’re unsure of whether or not your client is reliable?
One possible solution is to start asking clients to provide you with pay stubs. You can use a check stub maker like ThePaystubs to create these for clients, or you can also ask your clients to use the tool to generate pay stubs themselves.
Lenders usually require the information contained on paystubs. So, if your client can’t provide you with a paystub, it could mean that they are having trouble getting approved for financing – which means they might not be able to afford the product or service you’re selling them!
To help clients who aren’t used to giving out their pay stubs, you can say something like: “Many of our clients find it helpful to give us a pay stub so we can see how they spend their money.”
By asking for a client’s pay stub, you’re demonstrating your willingness to work with them. You’re helping them out by giving them an easy way to provide financial information.
But when is it appropriate to ask for a paystub in the first place? Sometimes, asking for a pay stub can come across as pushy or rude. The best time to ask for a paystub is after extending an offer and presenting your terms.
For example: “Mr. Client, I’m excited about this project, and I’m happy to get started. However, it would be helpful for me to see your pay stub before we finalize the terms of our agreement.”
By only asking clients for their pay stubs after they accept your offer, you’re demonstrating that you’re not interested in creating any surprises down the road. Rather than finding out later when you collect on an invoice or try to close a sale that you need additional paperwork, it’s much better to ask for the information upfront. Hence, both parties are clear about how they’ll do business together.
It can be challenging for self-employed business owners to get paid by their clients if they don’t have their pay stubs. However, by asking for a client’s paystub, you can avoid problems down the road and even establish yourself as a more professional business owner.
Using a Payroll Service
If you’re a self-employed business owner with many clients, it can be tough to monitor your payroll and make sure that every invoice you send gets paid on time.
An excellent way to do this is by using an automated payroll service like QuickBooks Payroll Services. By outsourcing your payroll needs to a professional company, you’ll have more time to focus on the overall growth of your business.
A Payroll Service will allow you to have access to top-notch customer support, technology, and accounts payable experts with very little overhead. You’ll save time by outsourcing your payroll needs, which will make it much easier for you to track your invoices and focus on the continued growth of your business!
Paying Yourself Like an Employee
When you’re a self-employed business owner, it can be tempting to pay yourself a flat hourly rate regardless of the work that gets done. After all, if you do lots of work in one week, you should be compensated for doing so – even if your clients pay you on a project-by-project basis! Unfortunately, this isn’t sustainable for a self-employed business owner.
By asking for a client’s pay stub, you’re demonstrating your willingness to work with them. You’re helping them out by giving them an easy way to provide financial information. It will also help you whenever you need to provide anyone with a paystub.
Martin Smith is the founder and Editor in Chief of STL.News, STL.Directory and St. Louis Restaurant Review. Smith is responsible for selecting content to be published with the help of a publishing team located around the globe. Smith is also responsible for building a network of aggregator sites to manage thousands of aggregated and indexed sources to create the content library used to filter and publish. He is a member of the United States Press Agency.