A business owner operating as a proprietorship is seeking advice on how to properly document payments made to a freelance service provider. They are unsure whether to create a 'bill received from' document or how to manage payslips for hourly work. The consensus is that the freelancer should issue an invoice, but if they are unable to, the business owner can create an invoice on their behalf and have it signed.
11 January 2025
I have started a proprietorship business and am paying an individual for freelance services on an hourly basis.
My concern is:
Should I issue her an Bill with my business logo and address, including my proprietor details, but mark it as "Bill Received From - [Her Name]" instead of "Bill To"? Is this valid?
Alternatively, how should I manage the documents for her payments?
Should I provide her with a payslip? If yes, how can I include hourly details in the payslip since she works on an hourly basis? Please advise on the proper documentation process in this scenario.