Invoicing for independent contractors is an essential part of their business. Usually, as a contractor, you will find yourself working on different projects for different clients. The billing and the payment terms may be different for different clients. You can use this word invoice template to bill your clients.
Proper invoicing is an essential part of financial accounting for a contractor. As a contractor, you should accurately track the time you spend working on a certain project and then create a well-detailed invoice at WeInvoice, once you are done working on a project.
The invoice you create as a contractor should be detailed and professional, including details such as the deadline of the payment, a list of the services you provided, and the total amount owing.
Invoicing for independent contractors should be simple. While using the WeInvoice invoicing software, it is even more straightforward. Here is a simple guide to invoicing for independent contractors.
Name the document as an invoice. As simple pr as obvious as that sounds, indicating that what you are preparing is an invoice in the header is important. It will make it easy for the client to understand the subject matter discussed.
Writing the word invoice in large fonts and in bold will go further in making it clear. Include your business information in the invoice. Invoices are the last bit of communication between your business and your client.
Enhance your Brand
You should make the most out of it. Invoices can enhance your brand when used properly. With this in mind, be sure to list your business details in the invoice. Your contact, your name, address, phone number, email address, and your business logo if you have one.
Include your client’s contact details. If you are contracting with a big company, you will often find that the billing address is different from the address used in the other daily communication. Therefore, you should ask for the correct billing address from your clients.
Include Invoice number
Add an invoice number. Sometimes you will need to retrieve an invoice, in case of an issue arising from its payment. Assigning a unique invoice number will make it easy for you to trace it and also, it makes record-keeping for both you and your client easy. Also, include the date you are sending the invoice.
Include details of your services
Add the details of your services. Your invoice should include four columns where you list all the services you provide in a list, the second column should indicate the quantity or the number of hours worked, the third column should show your pay rate and the final column should indicate the subtotal for each service.
Another important section of the contractor’s invoice is the payment terms section. This section should highlight things like the payment methods that you accept, and if you charge a fee on late payment, you should make it clear to your clients on this section.
Clearly indicate the total amount owed. The totals should also include the taxes. Making this section of an invoice stand out will make it clear for the recipient to read especially those who don’t bother with the details and scheme through the invoice details to the invoice totals.
Clearly indicate the payment deadline. Some people write vague statements when it comes to this section of the invoice. For example, if you write payment should be made within two weeks, the ambiguity in that statement may cause delayed payments. Having specific dates written, for example, payment due on the 23rd February 2021 makes it clear when the late payment dates begin.
Sometimes, you could end up making a few mistakes that may cost you when invoicing. Some of the common mistakes that contractors make include, not being specific about your payment terms. For example, if you charge fees on late payments, be upfront about it. If you fail to do that, your clients may view you as a scammer in case you impose such a fee on them and this may negatively affect your reputation or your business relationship with that client.
Keep track records
Also, be careful not to forget to keep a track record of the time you have worked on a certain project. This will help you in billing your client correctly since most of the contracting work you will charge per hour. Also, be sure to invoice your work without delays. If you want to receive your payment on time, billing on time is key.
Finally, you do not have to struggle to look for new contracts and struggle with all your invoicing work. WeInvoice has very neat and professional contractor invoice templates.