As a contractor (freelance) offering services to different clients, being flexible and autonomous is usually highly beneficial. This is because you get to work directly with your clients and get paid without the need of an employer or broker (middleman). However, it would help to have a proper way of getting and accounting for your revenue and profits. That is why you always need to have a contractor invoice template to prepare an invoice for your clients.
As much as you get to work on a contract basis, acquire several clients, and negotiate for your payment directly, failure to prepare invoices for your clients after offering them your services may be detrimental to your work.
With a contractor invoice, you have just the proper document to indicate the kind of services you offered, the payment you expect, and any other fees you incurred like consultation, materials, and labor. As a contractor, ensure that you always have a template to prepare an invoice for any contracted service you offer.
This may include writing, gardening, photography, videography, building, and even carpentry. Also, it is wise to always keep a copy of the invoice for future reference when dealing with your clients and as financial or service records.
A Contractor or Freelance Invoice is a form used by a contractor to bill their clients after offering them specific services.
Whether it is photography or carpentry, you need to always provide a list of all the services you offered your client. That is why you need a contractor invoice template to do so.
Using a template to prepare this contractor invoice will ensure that you have all the details of the services offered and work done. You should prepare and send your clients this invoice based on the time agreed upon by both of you. With an invoice, you will be assured of proper and secured billing of your client while you get an effective way of storing your accounting records.
Pro tip: When preparing this invoice, ensure you indicate any fees incurred and the payment you expect for the services offered or work done separately. The payment you expect from the client for the work is referred to as the contract price. The contract price should not be put together with the fees, including material costs, labor costs, GST (Goods and Services Tax), and HST (Harmonized Sales Tax).
What Should Your Contractor Invoice Include?
When preparing your contractor invoice, ensure that the document contains the critical information mentioned below. These components are essential and must be found in your contractor invoice template. With this information in your template, you will have a complete contractor invoice to ensure your clients understand what they are paying for and receive your entire revenue.
An invoice header
The invoice header is the first piece of information in your contractor invoice template that you will need to fill out. This section should contain the following information: the invoice date, a unique invoice number, your contact information, and any license information related to your contracting work.
- The invoice date: The invoice date was the date when the invoice was prepared before being sent to the client. It should be indicated just below the header of the invoice.
- A unique invoice number: Adding this is meant to keep track of the invoice to ensure you have well-organized financial records. The invoice number should be unique so as to make it easier for you to refer to any invoice you may need. It is best to use a numbering system for your invoice.
- Your contact info: This will include your business name, the complete address, email address, and phone number.
- Include any license information: This may entail your company’s logo, address, and license number for proof of your company and its services. With this information, the client is able to verify that you have a credible business.
Your client’s details
You should also include your client’s details, including their name, email address, and phone number in your contractor invoice template. You can also include their location by mentioning the name of their city. Your client’s details are essential and must be written correctly. You should include the name of the person who will receive the invoice if you are dealing with a company client that has a billing department.
An itemized list of services
The next component to be included in the template as you prepare the contract invoice for your client is the list of services offered. The description of services must be detailed yet brief as you will have to mention all the specific information concerning the services you offered. The information you should mention includes the type of service, the hours spent on the services, the number of services, and the rate for the services offered.
The rate of each service should also have a total at the end to give a clear amount. Ensure that the details in your contractor invoice are simple and easy for the client to understand to make the billing process faster.
The template will provide properly detailed accounting records with an itemized list of services in your contractor invoice. Ensure that you take a few photos for the client to see your progress with the project. This can work best if you take the before and after pictures.
Description of the work location and your scope of work
You will need to include the location of your work and give details of the kind of services or work you offer. When describing the scope of your work, you can include the order number of the client, the start date for the work, the intended duration for handling the work, and the prospected completion of the project.
Address the materials you’ll use
Your contractor invoice template should also mention all the materials used, or the materials you plan to use in detail. You can choose to include the serial number for the materials you have listed in the invoice.
If you are listing all the materials you purchased for a particular program, there are specific details you will need to include. The details in relation to materials are the types, the quantity, the cost of every piece of material, and the total amount for the materials.
Add labor time spent on the project
It would help to list as you did with the materials section for labor in your contractor invoice template. This means that you should include the following: the type of labor, the quantity of labor, the number of hours required to complete the project, the number of people working on the project, the price of labor per hour, and the total cost for labor.
Display the total amount due
Your contractor invoice should have the total amount due from your client. This includes the total for labor and materials used for a particular project, excluding the deposit amount, if any. This information appears at the end of the invoice.
The amount of GST/HST
The amount of GST/HST is fully known as Goods and Services Taxes/ Harmonized Sales Tax. This is referred to as the taxes that must be added to the total of the materials and labor to determine the final amount the client should pay. These taxes are referred to as sales taxes.
The deadline for payment
The deadline for the payment must also be indicated at the bottom of the template for the contractor invoice. It is meant to indicate the date by which the payment should have been made in full. You need to inform the client of this date so as to avoid late payment.
To whom the payment should be made
You should also mention the person your client is making the required payment to avoid any confusion. In the invoice, you need to specify if it is meant to be paid to you or to a particular organization. This way, your client is aware of who to contact to confirm if the payment was made to you successfully.
Acceptable forms of payment
As a contractor, you should mention the acceptable forms of payment in your invoice template to give your client preferred options. Also, different forms of payment offer convenience and flexibility for your client. Whether you prefer cash, a check, a debit card, or a prepaid card, you need to mention them so as to make it easier for the client when making the payment.
Include your payment terms
Including the payment terms in your contractor invoice will ensure that your clients are aware of all the conditions surrounding the payments to be made. This can include consequences regarding late payment, information in regard to paying in advance, conditions of whether or not the deposit should be returned to the client, etc.
Shipment details
This includes the summary of all the information regarding shipping any materials or goods required for the work or project you are handling. For example, you can include the number of materials, the date of the shipping, and even any critical contact information details regarding the shipment.
Contractor Invoice Templates
Working as a contractor requires a valid way of acquiring and accounting for payment after offering your services. That is why you always need to prepare a contractor invoice to access your payment. This process has been made easier by using templates meant to prepare contractor invoices.
You can access free and downloadable contractor invoice templates given here. They are easy to use and customize to suit your needs. Also, you can find different templates for various contract jobs and services. With these contractor invoice templates, you will have all the critical components required to make the invoice complete and appropriate for your clients.
When to Send Contractor Invoices?
The best time for you as a contractor to send your clients an invoice is usually the end month, as this helps to cut down the size of the paperwork required to be filed. For contractors who prefer instant invoices after every step of their work, this style is also beneficial for sending your invoices. This is because it guarantees the proper flow of money and reduces the chances of incurring debts. You can send your contractor invoice once you finish the project you are handling, in the case of small-scale contractors.
Conclusion
A contractor (freelance) invoice is a document used by contractors to request payment from their clients for services offered. Contracting jobs may include gardening, writing, and even building. It is crucial for you as a contractor to always prepare an invoice to ensure you have proof or evidence when dealing with your clients in the future.
The easiest way to prepare a contractor invoice is by using a free and downloadable template. With this template, your invoice will contain all the critical components required in a contractor invoice, including your contact information, services offered, payment details, and even the shipment information (if any).
