Month end with two hundred invoices
At the start of the month, freelancer invoices arrive. Some are PDFs, some are Word documents, one is a photo of a handwritten invoice. They are in pounds, euros, dollars and zloty. Some list job numbers, some list client names, some just say 'translation work, March'. Your finance person opens your TMS or spreadsheet, finds each job, checks the word count and rate, checks whether the PO was changed after an extra file was added, and queries anything that does not match.
Meanwhile translators email asking when they will be paid, and your PMs are pulled in to explain a difference of a few pounds on a job from six weeks ago.
Why freelancer payments are painful
- Every translator invoices differently, so matching is manual.
- Purchase orders change during a job, for example when files are added, and the change is not always recorded.
- Rates vary by translator, language pair and task, such as translation, revision or post-editing.
- Currencies and payment methods vary, with bank transfers, Wise and PayPal all in use.
- Queries go through the PM, who has to remember the job.
What it costs
Finance time that grows with every freelancer you add. Late payments that damage relationships with good translators, who have other agencies to work for. Overpayments that nobody notices, and underpayments that cause disputes. PMs dragged into accounts queries. And a month-end that is stressful for everyone.
| Step | Manual | With self-billing |
|---|---|---|
| Recording what is owed | Translator invoices | PO raised from the job, updated as it changes |
| Checking | Line by line against the TMS | Statement generated from POs |
| Translator confirmation | Implicit in their invoice | Translator confirms or queries online |
| Queries | Emails via PMs | Raised against the specific PO |
| Payment | Keyed into the bank | Payment run file prepared for approval |
How we build freelancer payments
- A purchase order is raised automatically when a job is assigned, with word count, rate, task and currency from the vendor record and the job.
- If the job changes, for example extra files or a revised word count, the PO is updated and the translator is notified of the new amount.
- At month end, each translator receives a statement listing their completed POs. They confirm it or raise a query on a specific line.
- Where your accountant and translators agree to self-billing, the confirmed statement becomes the invoice. Otherwise translators upload their own invoice and it is matched against the POs automatically, with differences highlighted.
- Approved amounts are posted as bills in Xero, QuickBooks or your accounts package through its API.
- A payment run is prepared, grouped by currency and method, as a bank file or a batch for a provider such as Wise Business, for your finance person to approve and release.
- Translators can see what has been paid and what is pending, which reduces 'when will I be paid' emails.
Whether self-billing suits your agency, and how it is set up for tax purposes, is a question for your accountant. We build either route.
What finance and translators notice
The PO change step matters more than it looks. Most payment disputes in agencies come from a job that grew after it was assigned: a second file, a revised source, an extra review pass. When the PO is updated at the moment the job changes, and the translator sees the new figure straight away, the disagreement never reaches month end.
Month end becomes a review of exceptions rather than matching every line. Translators are paid accurately and on the date you promise them, and can see where their money is. Queries are specific and quick to resolve without involving PMs. And you can see at any time what you owe to freelancers, which helps cash flow planning.
Recognise any of these?
- Freelancer invoices arrive in many formats and currencies.
- Finance matches invoices to jobs line by line.
- PO changes during a job are not always recorded.
- Translators email asking when they will be paid.
- PMs are pulled into payment queries on old jobs.