Navigating advance billing: When clients ask you to invoice for work not yet done
By
Tom May
If you only eat one bagel today, this is the bagel.
Summary
A creative professional faces a dilemma when a client with $10K left in their marketing budget asks to be billed in advance for work that may never happen, essentially creating a credit to be carried forward. The article explores the risks of such arrangements, including tax complications, accounting headaches, and potential ethical concerns. It offers advice on when advance billing might be acceptable (e.g., retainers, project deposits) and tips for making it work, such as clear contracts, escrow accounts, and transparent communication with clients.
Key quotes
· 3 pulledA client had $10K left in their marketing budget and asked me to bill them for it before year-end, then carry the work forward as a kind of credit.
The problem is, the work may never happen. Or it could take a year to use up. It feels risky, could mess with my accounts and taxes, and might ba
Members of the Creative Boom community explore when it's okay to accept an advance payment for future work and offer some tips to make it work.
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