Payment processes - advice needed Thread poster: jmarcos1
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jmarcos1 
Local time: 11:34
Spanish to English
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Hello
I am starting out as a freelancer and wanted to know a bit more about the payment method as so far I have just set up an account with Paypal...
Any advice on how it should work so that the translation/interaction with employer goes smoothly?
Is it best to ask for a PO before starting a Job?
Would I create an invoice on my paypal account once the PO has been done by the employer?
Sorry if I sound clueless about this but I am a bit confused ... See more Hello
I am starting out as a freelancer and wanted to know a bit more about the payment method as so far I have just set up an account with Paypal...
Any advice on how it should work so that the translation/interaction with employer goes smoothly?
Is it best to ask for a PO before starting a Job?
Would I create an invoice on my paypal account once the PO has been done by the employer?
Sorry if I sound clueless about this but I am a bit confused on payment process as I have yet to use the paypal system...
Thanks ▲ Collapse
| | | | Eyob Fitwi
Ethiopia
Local time: 13:34
English to Amharic
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| Is it only about paypal or... | Jan 9, 2012 |
Hi Jmarcos1
Is it only about paypal that you're inquiring about, or are you kinda new to the business and looking for some general direction?
| | | | David Wright
Austria
Local time: 12:34
German to English
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I'm not quite sure why you have chosen a service like paypal. You're based in the UK and I would guess you're expecting UK or at least European clients. I don't see why you don't just open a bank account and get your clients to transfer the amounts you bill them.
It is indeed best to ask for a PO before starting a job, but whether you'll get one /really need one is a different question. An email containing a request to do a translation plus a file to translate is just as binding a ... See more I'm not quite sure why you have chosen a service like paypal. You're based in the UK and I would guess you're expecting UK or at least European clients. I don't see why you don't just open a bank account and get your clients to transfer the amounts you bill them.
It is indeed best to ask for a PO before starting a job, but whether you'll get one /really need one is a different question. An email containing a request to do a translation plus a file to translate is just as binding a deal as a formal PO, though you would want to clear things like job and payment deadlines as well.
Good luck in your new career! ▲ Collapse
| | | | Alex Lago
Spain
Local time: 12:34
English to Spanish
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| No need to create invoice in Paypal | Jan 10, 2012 |
I agree with what David said.
Having said that if you still want to use Paypal there is no need for you to create an invoice in Paypal, you would create an invoice some other way and just get paid through Paypal, all your clients need to send you funds is you Paypal email address.
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jmarcos1
Local time: 11:34
Spanish to English
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TOPIC STARTER | Paypal and general direction | Jan 10, 2012 |
Hi
Well I set up paypal because I have noticed that many jobs require you to have it and have also been told it is an easy way to receive the money once you have completed a job. I also believe it is easier to just transfer money to your account but many think it is not the way it is done anymore. Also many translation companies that I have dealt with or spoken to use this method to pay their freelancers.
How do you guys usually do it do you use a system like paypal or ... See more Hi
Well I set up paypal because I have noticed that many jobs require you to have it and have also been told it is an easy way to receive the money once you have completed a job. I also believe it is easier to just transfer money to your account but many think it is not the way it is done anymore. Also many translation companies that I have dealt with or spoken to use this method to pay their freelancers.
How do you guys usually do it do you use a system like paypal or do you just ask the company/person you are working for to transfer the money to your account?
I mentioned about the PO as I have read in many forums/blogs etc that you should not complete a job without a PO first.
Thanks
Jess ▲ Collapse
| | | | Alex Lago
Spain
Local time: 12:34
English to Spanish
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| Paypal can be expensive | Jan 10, 2012 |
Paypal is a convenient way to receive payments, however it can be expensive, first of all because when you have a Paypal account you can only retrieve funds in your "home" currency, which in your case would be the UK pound, so if you receive payments in other currencies, say euros or US dollars you will have to convert them into pounds to be able to retrieve them.
The problem here is that Paypal applies a much lower exchange rate than bank's do, so that steps costs you money, add to... See more Paypal is a convenient way to receive payments, however it can be expensive, first of all because when you have a Paypal account you can only retrieve funds in your "home" currency, which in your case would be the UK pound, so if you receive payments in other currencies, say euros or US dollars you will have to convert them into pounds to be able to retrieve them.
The problem here is that Paypal applies a much lower exchange rate than bank's do, so that steps costs you money, add to that the fee Paypal applies for you to retrieve your money and it adds up to a substantial percentage of the payment. Usually you should be able to negotiate much better conditions with your bank, it will still cost you but it should cost less.
Regarding the PO think of it as the only proof you have of 1) that the job has been assigned to you, 2) the conditions of the job (rate, deadline, etc), so never ever start a job without one, even if it's a rush job always have a PO before you start.
[Edited at 2012-01-10 15:45 GMT] ▲ Collapse
| | | | Sheila Wilson
Spain
Local time: 11:34
Member (2007)
English
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| Multiple PayPal balances are allowed | Jan 10, 2012 |
Alex Lago wrote:
you can only retrieve funds in your "home" currency
You do have to convert if you want to transfer the money to your bank account, but you can set up several payment streams within the one Paypal account. I prefer to have EUR and GBP payments made directly by bank transfer (I have accounts in both currencies) as it's cost-effective. But USD payments are normally received into my Paypal account and are kept in USD until I find something I want to buy that is priced in USD. That may not suit everyone but I find it really useful to have a stash of USD available.
As regards costs, what I do personally is take PayPal commission into account when I quote in USD. For EUR or GBP, when the client expresses a real preference I generally agree to that but with payment within 10 days, rather than the normal 30 days. If they want to pay later, then they have to add 3.5% to their payment to cover my fees. I find that works quite well for both parties.
The important thing to remember in this whole process, Jess, is that you are a small but equal partner in this business deal and as the provider you have the right to specify your terms: rates, payment method, dates etc. Some agencies will dictate their own terms but you are not obliged to agree to them. On the other hand, it is essential to get all these terms stated clearly and agreed to before work starts. This can be done simply be exchanging emails or it can be done by you agreeing to their PO (which I personally have rarely received). When all is agreed, you do the job and deliver the translation. The invoice is sent with it or a bit after (or at the end of the month for some regular clients).
Hope that helps
Sheila
| | | | jmarcos1
Local time: 11:34
Spanish to English
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TOPIC STARTER
Thanks Sheila that is helpful.
However ,what other ways are there to make an invoice (electronicaly) without using a service like paypal?
Jess
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Jenn Mercer
United States
Local time: 06:34
Member (2009)
French to English
Please check under the "Tools" option and you will find that ProZ itself has the capacity to generate invoices: https://www.proz.com/invoice/try. If you would prefer to use a program on your own computer, QuickBooks and, I believe, Translation Office also can generate invoices.
| | | | Neil Coffey
United Kingdom
Local time: 11:34
French to English
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| Multiple payment methods | Jan 11, 2012 |
jmarcos1 wrote:
Any advice on how it should work so that the translation/interaction with employer goes smoothly?
Different clients will have different preferred payment methods. In my experience:
- many business prefer to do a direct bank transfer
- individuals may use either Paypal or a direct bank transfer
- a small handful of clients can for whatever reason only pay by cheque
I think the main thing is:
- when quoting for a job, specify in advance what payment methods you accept, and what your payment term is (i.e. how many days after invoice you expect to be paid)
- if you actively don't want to/can't take a particular payment method, emphasise this
In general, the best strategy is to accept all common forms of payment and let the client worry about which one they want to use. Paypal allows you to take common credit/debit cards as well.
Essentially the way Paypal works is that you have an "account" with them, and can at any given point transfer money from your Paypal account to your bank account. There is an initial hurdle with Paypal that there are random restrictions on what you can do (in particular how much money you can transfer) before you have gone through certain sometimes time-consuming loops. For example, it may take several days to register your bank account with them, or they may randomly decide that they need "more details" from you before authorising a transaction. So don't rely on a Paypal transaction the very day that you need the money sitting in your bank account. But bar the odd hurdle, it basically works.
Paypal, like banks, are a business not a charity and their raison d'être is to make commission on transfers.
jmarcos1 wrote:
Is it best to ask for a PO before starting a Job?
The reality in the current age of e-mail is that most jobs don't actually involve a formal "PO". Opinions differ on whether this matters, but the reality is that some clients just expect to send an e-mail saying "please translate this", receive a word document and invoice in return and issue a bank transfer. If you start complicating this process too much, they may decide it's easier to find another translator who doesn't.
If you're concerned about whether or not you'll get paid, then getting a deposit/doing more research on the client is probably of more benefit than having a Word document called "PO" with the same details as those contained in the e-mail.
However, other people have a different opinion and think that that Word document called "PO" has some kind of special status and will give you some kind of mystical guarantee of payment that an e-mail will not...
jmarcos1 wrote:
Would I create an invoice on my paypal account once the PO has been done by the employer?
Paypal provides this facility, but it doesn't particularly matter how you create the invoice. You just need to send them some Word document/PDF/whatever document that includes the information required for an invoice, however you decide to produce it. I believe the HMRC web site gives a list of the details required on an invoice, but they're basically the things that you would expect to see, having seen other examples of invoices. (The thing that might not be obvious is that you do need to include your trading name as you originally specified to HMRC.)
| | | | jmarcos1
Local time: 11:34
Spanish to English
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TOPIC STARTER
Thanks everyone this is really useful.
So essential Neil, I can create an invoice myself in Word if the right information is incuded? Do translation companies accept this if it is not sent as an official paypal invoice,proz invoice or any other invoice program?
Jess
| | | | Russell Jones
United Kingdom
Local time: 11:34
Italian to English
| HMRC requirements | Jan 11, 2012 |
Neil Coffey wrote:
I believe the HMRC web site gives a list of the details required on an invoice, but they're basically the things that you would expect to see, having seen other examples of invoices. (The thing that might not be obvious is that you do need to include your trading name as you originally specified to HMRC.)
The details are here: http://www.hmrc.gov.uk/vat/managing/charging/vat-invoices.htm
I remember reading someone's experience of Paypal in the forums a few years ago. Once the receipts in the tax year had reached the level of the Personal Allowance, Paypal witheld payment until they had been given satisfactory answers about tax declarations and payments. This may have been a Personal rather than a Business Account of course.
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Niina Lahokoski
Finland
Local time: 13:34
Member (2008)
English to Finnish
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| Valid invoice | Jan 11, 2012 |
Yes, an invoice created in Word or Excel or any other such program is perfectly valid as long as it includes all the necessary information required by law (and your client).
| | | | | save yourself a lot of trouble | Jan 12, 2012 |
jmarcos1 wrote:
Thanks everyone this is really useful.
So essential Neil, I can create an invoice myself in Word if the right information is incuded? Do translation companies accept this if it is not sent as an official paypal invoice,proz invoice or any other invoice program?
Jess
Jess, after you create your invoice in Word or Excel, save it as a PDF file. It cannot be tempered with easily. It's safer. Also, when you send it, request a receipt confirmation. Make sure your payment terms are clear from the outset, before you even start, and that you have a PO (purchase order) from the client or if not, you can draw up a contract that you sign and that the client countersigns. I do that in Word, using a JPG of my signature. When you get it back, save it in PDF format and send it back to the client asking for another receipt confirmation.
Payment method: Wire transfer is what you should ask for, at the client's cost. Don't pay bank fees. Include this and other important points in your quote. PayPal is my last resort and only for very small jobs. Accept bank checks or business checks only from trusted sources that are located close to your area. Western Union is another good way to "RECEIVE" money.
Don't do any work without a PO or a contract. As I said above, after I get it back from the client and it has been countersigned by him/her, I save it as a PDF and send it back to the client asking for a receipt confirmation.
There are many other issues when you start out. Most importantly, try to make a professional impression and don't work for peanuts. At least have a look at the average rates posted on proz.com although I consider them low. But it's a start.
http://search.proz.com/employers/rates
Be wary of anybody who wants to pay less than these rates. They are unprofessional and very likely to pay late or not pay at all. Also, working for little money will wear you out and make to unhappy.
Always check the blueboard if the company is listed and what your colleagues say. If the company is not listed (and that goes for individuals as clients), ask for payment up front. Don't move a finger before you got the money.
Of course, provide quality work. Make sure you can do the job. Don't agree on taking any job before you have thoroughly reviewed the original file. Don't let a company or individual pressure you into taking on a job immediately "because they need it ASAP". You are never going to get paid "ASAP" by these people.
The list goes on.
Read up on some of these things here in the forums.
Put your question in the search box and see what you get.
Bernhard
[Edited at 2012-01-12 06:18 GMT]
| | | | jmarcos1
Local time: 11:34
Spanish to English
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TOPIC STARTER | VAT registering | Jan 12, 2012 |
Hi,
Okay so that is good that you can create your own but according to the hmrc I need a VAT number. I thought this was only necessary if for example I was doign a translation for a Spanish company? Or is that something different?Do I automaticaly receive a VAT numver when I tell the hmrc that I am self employed?
Thanks
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