Freelancer Glossary

Time spent on client work that can be invoiced and charged to the client.

The movement of money in and out of your business, critical for covering expenses and maintaining operations.

Electronic invoicing using structured, machine-readable data formats that meet legal standards.

A project-based pricing model where you charge a single agreed-upon price regardless of time spent.

The amount you charge clients for each hour of work, forming the basis of time-based billing.

A formal document requesting payment for goods or services provided to a client.

The legal right in the EU to claim compensation when a client pays an invoice late.

The conditions that specify when and how a client must pay an invoice.

The measure of revenue remaining after all costs are deducted, indicating the financial health of your business.

A recurring payment arrangement where clients pay a set amount regularly to reserve your availability and services.

The uncontrolled expansion of project requirements beyond the original agreement, often without additional compensation.

A single record of time worked, including duration, project, description, and date.

The practice of recording how much time is spent on work tasks and projects.

Time worked on client projects that has been tracked but not yet converted into an invoice.

Value Added Tax - a consumption tax applied to goods and services in the EU and many other countries.