How to invoice international clients from Lagos

Adeolu Titus Adekunle

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Even if you enjoy what you do, the sweetest part of working is getting paid. But we can all agree that the administrative aspect of being a freelancer or business owner can be a thorn in the flesh. Invoicing in naira is stressful, but not as bad as when you’re working with international clients. Now you are managing differences in currency, exchange rate volatility, taxation wahala, payment delays, and currency conversion cost. Yet, invoicing is important because it helps you look professional and avoid payment issues.

One of the most amazing parts of being a Lagos freelancer is that we will always find an easier way to get the job done. If you’re wondering how you can invoice international clients from Lagos, here is a guide.

Have the right payment set up

Yeah, it goes without saying, but before you send a single invoice, you need a place to receive payment. Your local Nigerian bank account is not the best for receiving international payments. It uses SWIFT, which is rather slow and expensive. You also don’t have control over your conversions. Your bank automatically converts the money, and you cannot trust their exchange rate.

This is why Lagos freelancers opt for digital foreign currency accounts. Platforms like Grey provide USD, EUR, and GBP account details you can add to your invoice. Your client pays you as if it were a local transaction. You can keep the foreign currency or convert it and withdraw it to your Nigerian bank account whenever you need it.

Also read: Setting up payment terms and timelines with international clients

Choose your invoicing currency deliberately

One of the first decisions to make when invoicing across borders is which currency to bill in. The options are your local currency, the client's currency, or a widely accepted international currency like USD, EUR, or GBP. Most international clients won’t be able to pay you in naira, and the conversion rate might eat into your earnings. Also, with the way the naira has been fluctuating, you are uncertain of how much you’ll be getting at the end of the day.

It is usually better to bill in USD, EUR, or GBP, whichever the client is comfortable with. This avoids confusion and gives you better control over how and when your payment is converted.

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What should be on your invoice

For a professional invoice, here are some details that should be on it:.

Your details. Your full name or business name, your address, and your contact information.
The client's details. Their name or business name and address.
Invoice number and date. A sequential invoice number and the date of issue make it significantly easier to follow up on late payments.
Description of services. A clear description of what was delivered, covering which period or milestone the invoice relates to. Clarity here prevents disputes about what is actually being paid for.
Currency and amount. State the currency explicitly and the amount due.
Payment details. This is where your virtual foreign account details go. For US clients paying via ACH, include your routing number and account number. For European clients, include your IBAN and SWIFT/BIC code.
Payment due date. A specific date. Net 14 or Net 21 payment structure for most international clients. It can be shorter for new clients.
Late payment terms. Stipulate what will happen if the payment is not received by the due date.

Choose an invoicing tool

You don’t need to pay out of your nostrils for an invoicing tool, but get a good one that makes invoicing look less like a chore. Here are some great options:

Grey invoice: Lets you create and send invoices directly from your Grey account and receive payment into your Grey foreign currency account seamlessly. This streamlines your payment process by integrating your invoicing and payment systems into a single platform.
Wave: This is free, widely used, and supports multiple currencies. You can create professional invoices, track payment status, and send reminders — without paying for a subscription.
FreshBooks: Offers more features, including recurring invoices and time tracking, especially in the paid version.

Whichever tool you use, make sure you can clearly specify the currency and include full payment details.

Also read: Invoice like a pro: Tools African freelancers are using to get paid faster

Prepare your taxes

Your earnings from international clients are taxable in Nigeria. The Nigeria Revenue Service treats foreign income earned by Nigerian residents as part of their assessable income and requires it to be declared accordingly. With the new tax bill, it looks like they will be monitoring compliance more closely. Keeping clear records of what you earned, in which currency, and when you converted makes it easier to file your taxes.

Invoice and receive international payments with Grey

Your best bet when invoicing international clients is to have a setup that integrates seamlessly with your payment system. This automation ensures you don’t have to double-check or miss out on payments. Grey gives Lagos-based freelancers, consultants, and business owners USD, EUR, and GBP accounts they can use to receive international payments directly, along with a built-in invoicing tool to send professional invoices and get paid into the same account. Users enjoy affordable fees, fair conversion rates, and swift transactions.

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