As a freelancer, you need to take care of a myriad of details when working with your clients. One of the essential documents that you have to establish for your solo business is the hourly invoice template.
This is a template which contains the basic details about the payments you’ll be receiving. By sending it, you charge a client on the basis of your hourly rate and the time you have spent on a certain project. There are smart principles to follow when creating your invoices, so that you use their potential to the fullest.
Here’s how to go about creating your own template and how to handle the hourly billing in your freelancing practice.
Consistency is key in building a brand, and that’s important for freelancers as well. You need a template for invoicing clients, so that you don’t create the same document from scratch every time. But it can also serve as a branding tool if you craft it in the right way.
That’s why it’s worth to set up a distinctive design for your hourly invoice template. You can include your logo or personal signature, which makes immediately obvious who is the sender. Then choose an uncomplicated and functional structure, so that the information is clearly visible to the client.
Besides the looks of your invoice template, you need to take care of the content too. When starting work with a new client, you have to agree on the billable hours rate. This is what you will input in the invoice as the unit price for your work.
Having settled the rate, you then need to diligently track the hours you have spent working on the project for that client. It’s good to determine a system for rounding the time, such as 15 minutes to half an hour. You have to inform the client how you will handle the tracking and rounding. That’s how you can prevent misunderstandings and discrepancies in the invoice information, and thus ensure timely payment.
There are a few basic elements that should be in your hourly invoice template. First and foremost, you have to include details about your business, such as company name and tax ID (or other relevant identification number). Typically, you also need to note your business address. The client’s company name and address should also be placed in the invoice.
The invoices have to be numbered for practical reasons. You should always include the date of issuance, as well as the due date for payment. Then, of course, you have to include the name of the project that you’re billing for, the billable hours you’ve worked on it, and the hourly rate that you’ve settled beforehand. Lastly, you should include the final sum that the client owes you, as well as the tax rates and the currency you’re using.
You may also want to set in the template the payment conditions, late fees, and your contact information. The more details you deliver to the client, the easier the payment process can go through.
The best part about setting a template is that you don’t need to redo it every time. You just have to modify the company’s details of the client and the project information - but the design and structure are easily reusable.
Need inspiration to start with your own hourly invoice template creation? Generate one right now!