To ensure you are paid promptly and the smooth running of your contract you need to prepare Time sheets (blank Time sheets or e-copy Time sheets are commonly used) detailing the work you have done for the client usually on a weekly basis and the number of hours or days worked. Your line manager or team leader will typically approve the time sheet by signing it off.
Almost all agencies and clients require an invoice to accompany each time sheet, detailing the total amount owed for services performed, plus VAT (if your Invoicing Company is VAT registered). Some of the larger agencies also offer a self-billing option where they create an invoice on your behalf when they receive your authorised time sheet. Payment times can vary from Agency to Agency, although most of the larger ones do pay promptly (some within 7 days). A payment cycle of 1 to 2 weeks from invoice creation to receiving the money in the bank is typical.
Be warned, some Agencies can take as long as 45 days to pay your invoice, so check with the Agency what the payment cycle time is for your contract. Fingers crossed, you shouldn’t experience any payment delays but if you do chase the Agency/Client direct and if you are using a Managed Service (Umbrella) Company ask them to chase too.
It cannot be stressed highly enough just how important it is to keep your Time sheets and Invoices up to date, ensuring they are sent in at timely regular intervals. Some agencies only process Time sheets and Invoices on certain days. Miss it and you may have to wait until the next one comes around. Again this is where Managed Service Companies (Umbrellas) come into their own. It is in their interest to get you paid as quickly as possible as they do not get paid until you do.
Of course if you are using your own Private limited Company you will need to be the invoicing clerk, credit controller and finance director. This is a downside of contracting without a Managed Service Company (Umbrella) behind you.
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