Fill in Invoice Template for Staffing with Ease and Efficiency

Fill in invoice template for Staffing

hey what's up youtube it's ben and in this video  we're going to talk about how recruiters get paid so many people are constantly asking me how do  i actually get payment from my clients how do   i invoice them what do i do with taxes how do i  actually deal with the money how does that work   with a business bank account and i'm gonna answer  all your questions right now so first things first   let's be really really clear at the start of the  process you would have a contract with your client   that contract is going to outline exactly what fee  percentage or whatever fee structure you have in   place whether it's a percentage of their annual  salary or a flat rate that's going to be defined   in the contract the second item that's going to be  in that contract that's super important is going   to be your net terms in case you weren't aware net  terms are exactly when you get paid so for example   if i put in a contract 14 day net collection that  essentially means that 14 days after the exact   start date of my candidate i get paid so  if someone starts on june 1st on june 14th   i will be receiving my payments the third  thing that's going to go in your contract   is your guarantee period now your guarantee  period you should already know is the amount   of time that you guarantee that candidate will  stay with that client or you have to replace   them up to one time only when it comes time to get  paid what you actually do is initiate an invoice   now let me hop into my computer real quick for you  and i'm going to show you exactly how to generate   an invoice super easy and super quick  so we're right inside my computer here   now generating an invoice is much easier than you  think so i use oftentimes a really really simple   invoice generator that is online it's actually  free and it's basically something that anyone   could use and figure out so the way you do this  is find find this link right here it's invoice   generator dot com and what it'll do is allow you  to basically just fill out a pdf eventually this   will become a pdf it'll add your logo right  here so let's go through that really quickly and then it's going to ask who the invoice is  coming from right so for me that would be seattle search solutions beyond that who is it billed  to now this is not going to be a person's name   um this is going to be the company so  let's just say abc industries perfect   now ship to we're not going to fill that out  because you're not shipping any goods or anything   like that you're actually providing just a service  um up here is a number generator this is basically   if you want to keep track of your invoices for any  certain purposes so you know if you if this is the   second invoice that you sent to this company maybe  you'll just leave that as a two if it's the first   one you've sent put it as number one um and in  that in that point you'll be able to keep track   um if you have a system for that now the date  is going to be the current date so let's just   say it's today um payment terms this is where  you get to type in your net collection right so   if i have 14 day terms of them which means i get  paid 14 days from the start date of my candidate   i'm going to put net 14 uh i'll just put an ad 14.  then leave it at that they know what that means   um that would mean the due date let's let's  just pretend that my candidate started on   the first um and i i calculate this through the  weekend so i'm literally just going to say net 14   right here so that would come out to the  15th so i'm going to run it on the 15th   as the due date um and that is the official due  date that they need to pay me by so that'll be on   next tuesday basically um so again pretending that  that candidate started on june 1st with that being   said here's our line item right so you're going to  line at them you know john smith let's say he's a   welder uh position um you want to put something  like maybe started june 1st and let's say uh you could put his rate of pay here let's say  he's making 25 an hour so with that being said   um let's say you just are running like a flat  rate on this or a percentage rate whatever that   rate is going to be let's just say that you've  calculated it out and you figured out that   over the course of the year that his salary  is going to calculate out to a percentage   where you're going to make twelve thousand  dollars you're going to put that right here and it'll calculate it out as shown right here  12 000. if you have another position right if   you have somebody else you're going to want to  add them here like if you're hiring four or five   people you will line item them all here but we'll  take this off for now and we'll just pretend that   we're adding this one person notes um this is  going to be any information that you want to   add in or or anything that you want to remind  them of john smith start date june 1st 2021   um you know if there's like separate branches or  something like that you might want to add that in   um but let's just say we'll leave the information  there for now um terms um terms are basically   exactly how you want to get paid so this is  something i'm going to talk about in a second here   when i come back out but also this is where you  would add this stuff so you would say something   along the lines of please remit payments via buy  a check um to one two three four you know south   avenue um south avenue east um then you'd say  something like apartment 8 and you would put wherever you're located right completely made up zip code obviously not  a perfect address so that's where you would   essentially put kind of how you want to get  payment right so unless you've spoken otherwise   with this with this client about how you're going  to actually get your payment that's exactly what   you're going to put to them right here because  you want them to have this information so you're   going to put that in there this you do not have  to deal with don't deal with any of this here   this is totally kind of on their side but this  is super simple right so from my company to   their company it's for john smith um i had some  notes in here and i have my payment terms in here   now what i can do is actually download the invoice  and shoot it over to them in an email it's just a   regular old pdf so they'll open it up and see  it and say yep it's an official invoice from   seattle search solutions to abc industries for  twelve thousand dollars it's due on june 15th   and they'll be well aware now here's one key  element to remember you always want to send your   invoice the day that your candidate starts  that gives them plenty of time to get this   payment in order to get their accounts payable  department all set up so that there's no lag   time or anything like that so they should have  no excuse to be late on your payment whatsoever   so send this invoice over via email and that's  basically it as far as the invoicing goes so i'll   hop back out and i'll talk a little bit more about  invoicing receiving payment and taxes all right   guys so i'm back outside here now that is not the  only way to send an invoice that's a really simple   free version of an invoice generator that you can  simply use and type up in a matter of five minutes   like i just did now with that being said you can  absolutely utilize solutions like quickbooks that   do invoices very well you can use all kinds of  other software um that's out there that's paid   that's free that's cheap anything you want but  whatever's comfortable with you whatever you   utilize often sometimes i'll use that sometimes  i'll send them an invoice through quickbooks   but here are a few rules that you definitely  need to follow when you're invoicing you might   have noticed when i created that invoice i asked  for the payment to be remitted basically mean   to be given to me via check that is how i like all  of my payments to be received i love that it's a   paper check it's standard i get it in the mail  all i have to do is a quick mobile deposit with   my mobile phone and i'm done it's so easy right  so many people nowadays are all about getting   things electronically but be careful there are  huge problems with this i would highly recommend   that you are extremely careful with using  different types of electronic payment services   and the only one that i really really  trust is basically doing direct deposit   ach through your bank meaning they have your bank  details they will send you the money the money   comes into your account and it cannot leave the  other ways that people are doing it are via venmo   credit card paypal cash app all of these random  type of simple solutions except for they're not   so simple because they're very very susceptible  to chargebacks on a credit card if someone were   to pay me with american express card on paypal  for instance i can go in and charge that back   instantly and boom your fee is gone you have no  recourse except for trying to go through the legal   system same exact concept goes for any of the  other electronic forms that i mentioned except   for of course bank ach direct deposit now that  is the standard that's super simple super easy   i definitely like to go the check route that  is personally me i get the check i have it   it's simple um but again electronic is really  fast and super simple that way so a lot of   companies are transitioning to do ach um and to do  everything through bank transfer and that's great   but i would not veer off that pathway and go into  cash app or doing zell or doing anything weird   on paypal especially where uh ridiculous things  can happen they can hold your money for 90 days   they can stop the payment they can think it's  money laundering it's it's just not the way you   want to do business so with that being said let's  cover taxes as the last item here right so if you   plan on making anywhere between 100 000 to 150  000 in gross total revenue that means everything   that you collect before any taxes are taken  out that means that you're going to need to   plan on putting aside about 20 of every single  amount that you receive so let's say you get a   10 000 check as a fee payment you're going to  want to put 2 000 into a separate bank account   inside of your bank right you already should have  a business bank account because you should have an   llc a dba and an ein therefore you should create a  business bank account with your bank whether it's   chase or wells fargo or whatever  it is have that business bank account but then   take out of the business bank account and put  into a separate checking account a free checking   account that they should let you have make that  a taxes only account and put that two thousand   dollars in there at the end of the day we all have  to pay uncle sam just a few more items on taxes   themselves it really really depends on exactly  how you are set up now i'm not going to go in to   a full-on cpa seminar here because i'm definitely  not a tax professional and i'm not certified   to give this advice this is for entertainment  purposes only so here's the deal you can become   a sole proprietor which essentially means that  you're just doing business on your own you're a   sole proprietor and you really have kind of no  tax structure at all you can also become an llc   dash c which is the default llc and that basically  protects your personal assets from your business   assets so let's say your business assets include  things like your computer or this microphone   and for some reason you get sued right uh a court  can take all of these items from you um but they   cannot take things that you buy personally in your  personal life so if you have a couch if you have   a personal vehicle right they can't take those  things so i think it's always good to actually   formulate an llc i'm actually not a big fan of the  sole proprietor i would definitely formulate your   llc sooner rather than later since especially you  need two years on the books of having that llc so   that you can actually show self-employment if  you're to go to get a loan from the bank for   a mortgage or a vehicle or anything like that you  need to actually establish your entity and that   requires creating an llc so i would definitely get  that started the next step up from an llc dash c   is an s corp that is an llc dash s now what this  means is actually you have a salary that you pay   yourself so once you've kind of gone through maybe  one or two years of having an llc at this point   you would want to transfer and upgrade to an llc  s corp right at that point you're paying yourself   a salary a reasonable salary in the eyes of the  irs and overall you have a lot more tax advantages   i highly recommend that you find an awesome  referral from someone that makes a lot of money   and use their cpa i don't care if it costs two  thousand dollars use their cpa because they will   find you deductions various gray area loopholes  things that will basically be above board but   still save you a ton of money on taxes but in  general the bottom line here is if you're going   to plan on making 100 to 150 put away about 20  to 25 of what you earn at the end of the day   if you actually have to pay less taxes hey that's  fine you still have that money and that's money   that that's yours right you've earned that money  it doesn't matter if you plan on making maybe half   a million or more uh definitely keep in mind that  you should probably put away about 35 plus percent   of that money or at least be prepared to pay  around 35 now of course that's not gonna be the   actual number because it will come down once you  add in all your deductions and things that you've   used for your business things that you've bought  right so the deductions include things like this   microphone your computer uh your lighting right  that i'm using on this youtube video right now   camera like all that kind of stuff so those are  deductions that will actually offset your tax   liability and make it lower but keep in mind taxes  the entire year keep in mind a good tax strategy   to be able to buy things that you can deduct later  on and they must be deductible they can't just be   kind of things that you want and say i'm going to  deduct this right no that doesn't work you have   to have real deductions so just to recap basically  make sure that you're safe on taxes put away about   20 to 25 if you expect to be making about 150k  gross revenue also that's how you invoice what   i just showed you on the computer there's also  many other ways to invoice do not invoice with   anything other than bank transfer or ach don't  invoice with a venmo with a cash app or anything   else like that where someone can use a credit  card to charge you back and that is essentially   how you get paid as a recruiter alright guys so  if you 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