As an independent contractor, you would have a lot on your hands because you run a business that provides essential services. Everything from landscaping, electrical work, renovations, plumbing etc. is a need-based service for clients so naturally there is a lot of pressure on you. To make things easier for you to run your business, you should use a contractor invoice to ensure that you’re properly paid for the services you provide to your clients.
Contractor Invoice Templates
What is a contractor invoice?
A contractor invoice template is a document that you issue to bill a company or an individual for the supplies or services you provided. A typical invoice usually lists the exact quantity of supplies you provided, the hourly rate you charge or any flat-rate fees. Additionally, it also contains information about your payment terms.
What does a contractor invoice look like?
Since you should include a lot of information in your contractor invoice, you should design this document in an organized way. Make sure to include the following information in your contractor or work invoice template:
- Your contact details.
- Your licensing information for all of the licenses that you possess.
- A description of or details about the work that you will accomplish.
- The materials you need for the project.
- The labor time you will spend on the project.
- The payment methods that you will accept.
- The total amount for the work you will do.
Arrange this information in a format that makes it easy to reference when there is a need to and also, easy for your client to read and comprehend.
Job Invoice Templates
Who prepares an invoice?
A contractor invoice is a document that you issue to a client. Since you will issue the contractor or job invoice template, then you will also have to prepare it. This is especially true if you are an independent contractor.
How do I write a contractor invoice?
It will be your responsibility as a contractor to create a detailed contractor invoice that outlines important information about billing like payment deadlines, an itemized list of all the services you will provide, and the total cost. Here is a guide for writing your independent contractor invoice:
- State that the document is an invoice
Although this might sound redundant, it is still important to label the document clearly as an invoice. This makes it immediately clear to the client what they’re looking at.
- Add the information about your business
The header should list your business’ contact details. If you have a business logo, add it. Also, include basic information like your business’ name, address, phone number, and email address
- Add the contact details of your client
Just under the header will be your client’s contact details. Ask your client who you should indicate as the billing contact person is for this invoice.
- Assign an invoice number
Every invoice number issued to clients should be both official and unique. This can be very helpful in keeping records for both yourself and your client. Moreover, it also becomes easier to reference a specific invoice should an issue arise involving payments.
- Add the date of the invoice
All invoices must include the date when you sent them. You can find this information at the top of the invoice.
- List the details about the services you have rendered
The next step is to create a table with columns. It is here where you add an itemized list of the services you rendered. The 1st column gives a short description of all the services you provide.
The 2nd column indicates the number of hours that you worked. The 3rd column lists the pay rate. The 4th column includes the subtotals for each of your services.
- Include your payment terms
You should specify your payment terms in the invoice, including the acceptable payment methods. If you have any late fee policies, you can also include the details on the invoice.
- Add the total amount your client must pay
List the total amount your client owes for the bill and this includes applicable taxes. Emphasize this information by either using bold letters, large font or different font colors.
- Include the deadline of the payment
As important is the payment deadline and you should also highlight this using a bold, easy-to-read font. If possible, be as specific as you can regarding the payment deadline to avoid confusion or delayed payments.
When should you send the invoice?
Is there a best time to send out your contractor invoice template?
The answer to this may vary. For instance, some contractors may request either full or partial payment upfront. Clients can’t consider this unreasonable since the contractor runs their own business and won’t want the resources of larger companies behind him. The payment also serves as an assurance that the contractor isn’t working for free.
At times, the timing also depends on your relationship with your client. If you’re working with a returning client, you may send the invoice after you have completed the work. This displays a show of trust on your part. As for new clients, you may also request part of your total fee upfront. This protects you should any issues arise with a new client.
Work Invoice Templates
Invoicing mistakes to avoid
There are several mistakes that you might commit when making your work invoice template. You should know these mistakes so that you can avoid them as much as possible. These mistakes include:
- Inconsistent formatting
This can confuse your clients and might become an obstacle when running an annual or quarterly financial analysis.
- Inconsistent schedules for pricing
This might lead to an inconsistent job invoice template that might confuse or even upset your clients.
- Not documenting your invoicing process
For the sake of your business, there is a need to have an invoicing process that is formally-documented. Although this documentation may take a couple of hours to complete, it will still be worth the investment to have an authoritative, go-to resource that will answer all of your clients’ inquiries.
- Neglecting payment terms and conditions
It will be to your advantage to become more flexible on the terms and conditions of payment. Different terms do have several advantages and you should use these in various situations where they will apply.
It is also important for you to disclose all of your payment terms and conditions upfront – something that many contractors neglect to do when making their invoices.