Glossary

B

Billable HoursThe hours of work a freelancer can directly charge a client for, as opposed to non-billable time spent on admin, propos…Burn RateThe rate at which a company spends cash each month beyond what it earns in revenue — calculated as monthly expenses min…

C

Client OnboardingThe process of setting up a new client relationship — confirming payment terms, access, communication channels, and pro…Cost to Company (CTC)The total annual cost an employer bears for an employee, including salary, benefits, provident fund contributions, and …

D

DeliverableA specific, tangible output a freelancer agrees to produce as part of a project, such as a finished design file, a writ…

E

Export of ServicesUnder India's GST law, services provided to a client outside India and paid for in convertible foreign exchange, which …

F

Fixed-Price ProjectA project billed at one agreed total price for defined deliverables, regardless of the actual hours the freelancer spen…FreelancerAn independent worker who provides services to multiple clients on a project or contract basis, rather than being emplo…

G

Gig EconomyA labour market characterized by short-term contracts, freelance work, and project-based engagements rather than perman…GSTINGoods and Services Tax Identification Number — a unique 15-character number assigned to every GST-registered business o…

H

Hourly RateThe amount a freelancer charges per hour of billable work, as opposed to a fixed project price.

I

Independent ContractorA self-employed person or entity that provides services to another party under a contract, controlling how and when the…IP Ownership ClauseA contract provision specifying who owns the intellectual property created during a project — commonly transferring to …ITR (Income Tax Return)The form used to file annual income details with the Income Tax Department of India, declaring income earned and taxes …

K

Kickoff CallThe first structured conversation between a freelancer or agency and a client at the start of a project, used to confir…

M

Milestone PaymentA payment structure that splits a project's total fee into portions tied to specific deliverables or project phases, ra…MSME Act (MSME Development Act, 2006)Indian legislation that, among other provisions, requires buyers to pay registered micro and small enterprise suppliers…

N

NDA (Non-Disclosure Agreement)A legal contract where parties agree to keep specified information confidential, commonly signed before sensitive busin…Non-Billable HoursTime spent running a freelance business that isn't directly charged to a client — proposals, invoicing, marketing, and …Non-Compete ClauseA contractual restriction preventing a freelancer or employee from working with a client's direct competitors for a spe…

P

PortfolioA curated collection of a freelancer's past work samples, used to demonstrate skill and experience to prospective clien…Presumptive TaxationA simplified tax scheme (Section 44ADA for professionals, 44AD for businesses) that lets eligible taxpayers declare a f…Project BriefA document outlining a client's requirements, goals, and constraints for a project, used to help freelancers understand…Proposal (Bid)A written pitch a freelancer sends in response to a project posting, outlining their understanding of the client's need…Provident Fund (PF)A mandatory retirement savings scheme in India where both employer and employee contribute a percentage of salary, appl…

Q

Quote (vs. Estimate)A fixed, firm price for defined work, as distinct from an estimate, which is an approximate figure that may change once…

R

RetainerA recurring fixed fee (usually monthly) paid to reserve a freelancer's time or a defined scope of ongoing work, instead…RunwayThe number of months a company can continue operating before running out of cash, based on its current burn rate.

S

SAC CodeServices Accounting Code — a classification system used under India's GST regime to categorize different types of servi…Scope CreepThe gradual, often unnoticed expansion of a project's requirements beyond what was originally agreed, typically through…Scope of Work (SOW)A detailed description of the specific deliverables, tasks, timeline, and terms for a project, used to define exactly w…Section 44ADAA provision of India's Income Tax Act allowing eligible professionals to declare 50% of gross receipts as taxable profi…Statement of Work (SOW)A formal document detailing the specific deliverables, milestones, timeline, and terms of a project — often more granul…

T

TDS (Tax Deducted at Source)A mechanism where a portion of tax is deducted by the payer (e.g. a client) at the time of making a payment, and deposi…Termination ClauseA section of a contract specifying how either party can end the agreement early, typically requiring a defined notice p…