One of the most stressful things about being self-employed is managing your cash flow. It’s especially difficult if clients don’t pay you on time. You can avoid most problems by putting a contract in place before you start an assignment. Don’t believe a handshake will suffice, even if you’re working with friends. Informal agreements are the source of almost every payment problem, so be sure the scope of the project, the payment terms, and the expectations for both sides are written down. For small projects an email chain will often suffice, but for longer engagements you should get a signed contract. Having a standard contract template that you can alter for different clients will make this easier — and save you time and headaches.

Source: Adapted from “How Freelancers Can Make Sure They Get Paid on Time,” by Rebecca Knight