Double Check Paycheck

For an independent contractor, it's extremely important to keep accurate payment records.  Each job has it's own rate, hours and payment process, so it can be very confusing if you are not organized.  In a previous post, I even mention practicing the virtue of patience in payment .  

Personally, I find it helpful to record the date of the job, client and the exact amount I expect to receive when my check arrives.  When the check comes, I can double check the amount and mark the invoice as paid in my records.  This has been a great exercise and kept me from second guessing any payment amounts.  Last week, I was reminded of why this exercise is so important. 

In February, I worked for Jack Daniels at the Tucson Rodeo.  I was a last minute booking because another girl backed out.  There were four girls on the job and each girl had slightly different hours.  My shift was the longest and I made sure to keep accurate records of my days, hours and rate.  On the last day, one of the girls was a no show (BIG no no!). 

When my check finally arrived, I double checked my records and realized it was short by $144!!  I immediately gave the agency a call to make them aware of the mistake.  After some digging, we discovered that I was shorted the exact amount the other model should have been shorted for not showing up the last day.  So, I was not paid for an entire day of work.

Thankfully, the agency apologized for the mistake and promised to cut me a check for the remaining amount.  But, the only reason the agency realized the mistake was because I brought it to their attention.  Without an organized system to record and double check my payment amounts, I would not have realized my check was incorrect.  This was a great reminder that taking a few minutes to keep accurate records is well worth the time and effort!

Patience in Payment

Steady jobs provide steady income.  Every 2 weeks or the 15th and 30th of every month, a check arrives.  You can plan and budget pretty easily.  Let's be honest, a freelancers payment lifestyle is not that easy.  It can be one of the drawbacks to the freelance lifestyle, but it doesn't have to be. 

In many cases, freelance jobs will take at least 30 and up to 90 days before you receive payment.  With the average time probably being around 60 days. 

Here's a hypothetical example (note: both the product & company are not real).   The Corporate office of Sassy Sauce has hired a promotional company, Can Do Promotions, to execute events all over the country.  Can Do Promotions, has hired you as a Brand Ambassador in your City.  You work a promotion for Sassy Sauce . After the event, you submit a time sheet to Can Do Promotions, who then sends an invoice to Sassy Sauce.  Once everything has gone through the chain of command in pay roll, Sassy Sauce sends a check to Can Do Promotions, who then sends a check to you!

Since there are so may companies to go through, the process will take some time.  That's why I highly encourage a reserve fund and creating a steady flow of jobs.  Once you get going, there is a cycle.  As long as you are working, you are giving yourself a pay check down the road.  You receive a check today for a job you work 60 days ago, but to you are working a job today you will be paid for in 60 days.  The more jobs and multiple streams of incomes you create, the better off you will be in between paychecks!

So, don't worry if it's been 30 days and you haven't seen the payment yet.  Maybe send a gentle email reminder, but usually, the company you worked with is waiting to get paid as well.  The more you understand the process, the better you can prepare and plan your finances.