Calculating hourly work and then billing it can become a big hassle. Often small businesses and freelancers face issues when they convert time logs into invoices. Tons of things like descriptions, hours worked, and other parameters are needed to make a proper invoice.
Also, a lot of freelancers need to make this kind of invoice. For the same, they use time tracking software to bill clients either weekly, bi-weekly, or monthly.
Few Things You Need To Add to Your Hourly Invoice
While creating an hourly invoice, you should mention everything you are charging for, your time on tasks, and your charges per hour. All this can easily be managed with online payment software, and you can follow these steps to make an hourly invoice.
- Give a title to your document.
- Add your business name in the header, client address, and contact numbers of both parties.
- Mention your invoice number underneath the header, due date, and date of issuance.
- On the right side of the invoice, add the details like the client’s name, email address, and phone number.
- The next step is to describe each task and the time spent on each task.
- Make sure you add a separate row for each task, add the hourly rate for the same, and multiply those to fill in the amount column.
- Once you have your amount column filled, you will need to calculate the subtotal. The next step is to include taxes and then calculate the total.
- Please mention how you would like to receive your payments and their expected timeline in the notes section. You can also mention late fees charges (if discussed before) if the invoice is not paid by a certain time.
- Lastly, thank your client for the business.
Once all this is done, make sure you send the invoice promptly. Some best online invoice software for business lets you integrate with email tools and send mails with a single click. When you send your invoices on time, it reduces the likelihood of excuses like that the invoice was never received. Also, make sure to maintain a copy of the hourly invoice for all clients to have a smooth tax season.
How Do You Number Invoices?
Numbering your invoices lets you, your clients, and tax authorities track an invoice with ease. Here are a few ways you can organize your invoice number using online invoicing software.
In this case, you can start invoice numbering from 1. If you prefer a three-digit invoice number, you can start like 001, and the next number will be 002.
Project and Customer Number
You can assign invoice numbers to your customers or projects in this system. For example, you can number your invoice STGF1001, where STGF represents a customer or project code and can then be followed by a numeric sequence. You can choose to start from any number, but make sure the invoice number is sequential and chronological.
How Do Freelancers Make Invoices?
Hourly invoices help your clients know how much their project wil cost and the hours needed to complete a task.
Online payment software offers downloadable invoice templates that can be customized to your specific needs. The two things you surely need to add to your invoice include the type of work done and the payment for the same. Besides, you will also need to specify the hours worked on the project, hourly rates, and the total with the taxes.
Make sure the check that your invoice clearly mentions the payment methods you accept. If there are any additional charges incurred for a chosen payment system, make sure you add that as well.
Using online invoicing software can help you ease out the invoicing process, personalize invoices, and build long-term relationships with clients. Your time tracking software also plays a big role here, so make sure you choose that wisely!
Following all these steps can help you track time and convert your invoices using your online invoicing software. It is high time you ditch your spreadsheets, invest in good time tracking software, and convert time logs into invoices easily. If you are confused about these solutions, let us help you find the right one for your business!