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Hourly Invoice Template

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"I did a lot of research before switching to Bonsai from another invoicing service. The ability to send and sign contracts was a game changer for me. No one else offers such a seamless process from proposal to contract to invoice. It has saved me a lot of time and lets me focus on creative work."
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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. 

Hourly Invoice Template
Image credits: eforms.com

Here’s how to go about creating your own template and how to handle the hourly billing in your freelancing practice. 

1. Create a design for your hourly invoice template

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. 

2. Determine rates and track hours with your hourly invoice template

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.

Hourly Invoice Template Sample
Image credits: invoicingtemplate.com

3. Include the essential details in the hourly invoice sample

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!

4. Hourly invoice template Google Docs

Freelancers and web developers are notable for using an hourly rate billing method. The style gives room for handling recurring tasks or services, and it is near perfect for charging revision. If you provide services that require you to bill your client hourly, adopting a solution that will help you create and send invoices effectively would be a priority. With an hourly invoice template Google Docs, you are sure to get the needed flexibility and effectiveness in billing your client.

Google Docs is a cloud-based solution that allows you to create and send invoices to your customers faster than you think. If you are considering your unique billing method, the platform offers a simple and intuitive solution to accommodate the peculiarity of your billing style. With Google Docs invoicing, you can create a custom invoice template that includes your hourly charge. Since you can save the hourly invoice template Google Docs for future billing, you don't reinvent the wheel whenever you have to do invoicing for another client. 

Hourly Invoice Template Example
Image Credits: noktan.snaptier.co

Google Docs billing, along with other electronic billing solutions, are gradually displacing the traditional methods of invoicing. Hand-written documents are prone to avoidable errors, which may be harmful to your business. Besides, you get to waste so much time and labor efforts that you could have channeled into other meaningful projects.

You don't have to be a tech geek to create an hourly invoice template Google Docs. The platform is simple to use, and it is intuitive in correcting simple mistakes like spelling errors and date formatting. Besides, you can always learn how to use it, considering the myriad of free online videos and resources created to help new users. 

5. Benefits of using an hourly invoice template Google Docs

You don’t have to spend so much on accounting software and invoicing solutions if you run a small business. You can achieve faster electronic invoicing with a reliable cloud platform.

Find out why business owners and freelancers are turning to hourly invoice template Google Docs.

  • Get access to create professional hourly invoices at no cost.
  • Create fast invoices and send them to clients for faster payment
  • You don't have to worry about storage as the solution keeps your files in the cloud.
  • Stay organized with your records and send invoices electronically.
  • Keep track of client records and account receivables.
  • Makes bookkeeping fast and straightforward especially for tax season
  • Eliminate avoidable mistakes that can cause lingering payment 
  • Create an hourly invoice template Google Docs for automatic and recurring billing
Hourly Invoice Template PDF
Image Credits: invoicetemplates.com

6. How to create your hourly invoice template Google Docs

Follow these simple steps to create a perfect hourly invoice template Google Docs.

  1. Go online and select a Google doc template
  2. Create a professional header to include your business name and logo. Don't forget to change the background color of the document to your theme if you so desire
  3. Add your contact details-mailing address, email, phone number, and website
  4. Add recipient details, including email, phone number, and website. You make it easier for your clients to claim responsibility for the bill with if you include their details
  5. Include the date you created the document and generate your preferred invoicing number. The number is essential for tracking the bill
  6. Now, list your services each on a line. Include your hourly fees and state the billing policy once again
  7. Sum the amount before tax before adding other fees that affect the total on a separate line
  8. Add the fees after-tax and put the total due somewhere at the bottom of the page
  9. Include your payment policy-preferred payment method, due date (Net 30, or 45 etc.)

If you consult engage in any form of freelancing job that has bills per hour, you have to impress your clients with your deliverables as well as in your hourly rate invoice. Clients often love to pay for productive hours and not just random time spent on a job. After putting in hours and achieving the deliverables in your contract, the next thing is payment for your services.

Creating and sending an hourly rate invoice puts you on the track of getting paid on time. Even profitable organizations sometimes have issues with their cash flow in terms of payment for services, especially for business with long payment cycles. For freelancers, payment is much flexible since it has there is no much bureaucracy involved. It would be best if you thought of tips in creating an effective hourly rate invoice that would enhance faster response from clients and also fully represents your business professionally.

Hourly Rate Invoice Template
Image Credits: vertex42.com

Essentials of an hourly rate invoice template

Invoices can take any form depending on the services performed by the issuer. Also, they can contain critical information, while others may just carry a handful of information about the deliverables. If you are a freelancer or individual consultant in the US with revenue over $600 in a calendar year, you are expected to include your business tax ID in your invoice.

Clients are meant to send you a 1099-MISC form once they see your tax ID on invoice receipt. The information on the form is needed for filing your tax and remittance to the IRS. Freelancers may add this number directly under their name and may request the tax form from clients at the note field.

Below are the relevant information in selecting an hourly invoice template:

1. Describe service deliverables in the hourly rate invoice template

Create a field to describe the services that you have rendered and make it simple for easy comprehension. 

2. Hours worked in the hourly rate invoice template

Record the time spent on the job in hours. Other units may be used depending on your agreement with the client.

3. Measurement units in the hourly rate invoice template

Instead of quantity in some eCommerce invoices, your hourly rate invoice would be in units -say man-hours.

4. Rate in the hourly rate invoice template

Since you bill per hour, the agreed rate on your contract should be stated on the document.

5. Net amount & total in the hourly rate invoice template

The net amount is the bill before tax. It is the product of the rate per hour and the total hours spent on the job. The total amount is the due payment after adding tax.

6. VAT in the hourly rate invoice template

Create a field for value-added tax. Check the rate for your country before adding this amount to the net amount. 

Hourly Rate Invoice Template Sample
Image Credits: vertex42.com

The benefits of using an hourly rate invoice sample

Before creating your hourly rate invoice at all, you must have decided on the amount to charge for your service on an hourly basis. While it is good to have a competitive price, it is fine you factor in the efforts you’d put in and the skills to complete a job.

Another important thing about the hourly job is in the recording of the useful working hours on a job. Time trackers are great tools in recording and tracking hourly work. Although manual methods such as recoding on journals an entering into excel sheets are in vogue. Freelancers may forget to keep the account, making them ineffective methods compared to automated tracking using software.

Below are the benefits of using an hourly rate invoice:

  • Organize your payments
  • Keep track of your completed projects
  • Keep track of delayed payment for record purposes
  • Stay ahead of payment due date for different clients
  • Keep an essential record for tax
  • Makes your booking fast and simple
  • Creates a good reputation for you before clients
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