Question 1

What should be in a client contract or statement of work?

Accepted Answer

Enough detail that both sides know **what is being delivered, when, for how much, and what happens when something changes** — because almost every dispute in service work comes from one of those four being vague.

**The essentials:**

**Scope, defined positively and negatively.** What is included and — more importantly — **what is not**. "Three rounds of revisions" prevents the argument that "revisions" meant unlimited.

**Deliverables**, specific and dated, with acceptance criteria. How will we both know this is done?

**Timeline**, including **what the client must provide and by when**. Most delays are caused by the client, and without this clause the delay becomes your problem.

**Price and payment terms** — amount, schedule, invoicing dates, payment period, and what is charged extra. A deposit before starting is normal and not rude.

**Late payment**, including interest and the right to suspend work. Say it plainly.

**Change control.** The most valuable clause in any services contract: additional work is quoted and agreed in writing before being done. **This single provision prevents scope creep**, which is the biggest unbilled cost in service businesses.

**Intellectual property.** Who owns the work, and **when ownership transfers** — best practice is on full payment, not on delivery. Also cover your right to use it in a portfolio.

**Confidentiality**, mutual.

**Termination** — notice on both sides, and what is payable for work done.

**Liability**, capped to the fees paid, excluding indirect and consequential loss, subject to what the law allows.

**Subcontracting**, if you use others.

**Governing law and dispute resolution.**

**Practical realities:** whoever writes the contract sets the default, so offer yours first; **read the client's purchase order and supplier terms**, since these frequently override your document; watch for 60- or 90-day payment terms, unlimited liability, and broad indemnities in large-company standard terms; and get anything agreed by phone confirmed by email.

**A short clear contract that gets signed beats a long one that sits unread.**

General information, not legal advice.

Question 2

What can you actually do about late-paying customers?

Accepted Answer

Considerably more than most small businesses realise — including a statutory right to interest and compensation that does not need to be in your contract, and that many suppliers never claim because

Question 3

What should actually be in your terms and conditions?

Accepted Answer

The terms that govern what happens when things go wrong — because when everything goes right, nobody reads them. A contract is a risk allocation document, and the clauses that matter are the ones

Question 4

What is a retainer, and how should you structure one?

Accepted Answer

An ongoing arrangement where a client pays regularly rather than per project. It converts unpredictable project income into recurring revenue — and badly structured retainers are one of the most

Question 5

What is invoice finance, and what does factoring actually cost?

Accepted Answer

Borrowing against money customers already owe you — releasing cash from unpaid invoices rather than waiting for payment terms to run. It solves a genuine problem for growing businesses and is

Question 6

What should you check before signing a commercial lease?

Accepted Answer

Considerably more than the rent — because a commercial lease gives you far fewer protections than a residential tenancy, and several standard terms can cost more than the rent itself over the term.

Question 7

What is the difference between cash and accrual accounting?

Accepted Answer

When a transaction is recorded. Cash accounting records it when money moves; accrual accounting records it when the economic event happens, regardless of payment. Cash basis. Income is recorded when

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