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Invoice Template for Hours Worked

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Invoice Template for Hours Worked

Freelancers are individual contractors that work on an hourly basis need to send clients an invoice for hours worked to get paid. If you are an expert that charges hourly, every minute of your time is valuable and should be rewarded. The hourly rate invoice details useful hours spent on a particular task in exchange for monetary compensation. You must have agreed with a client on a fair hourly rate for your service before sending your invoice for hours worked.

Image Credits: templates.office.com

You should consider tracking hours worked with a reliable tool to convert time spent on a project into rates. A freelance time tracking and billing software would help you organize your projects to the last detail while you bill your clients easily. 

Requirements of an invoice for hours worked 

Every time spent on a task by freelancers that work by the hour should count. So, it is essential to learn how to format and quickly send invoices to clients. Downloading an invoice for hours worked template is another option to save you time to concentrate on your core business activities. However, you should be familiar with a proper invoice template to help you select one. See the relevant sections of a template you should use. 

1. Header

This is where you input your business name and contact address. Include the date you created the bill and a unique invoice number.

2. Customer details

The bill should have a field for customer contact address, email address, phone number, and website.

3. Service details

This field is where you describe the details of the service offering in your invoice for hours worked as opposed to product details for eCommerce invoices. 

4. Hours worked

Billable hours are recorded in this field.

5. Hourly rate & net amount

Here is where you include the rate per hour and sum the fees before tax.

6. VAT

You record value-added tax rate in this field, and the amount is country-specific. 

Image Credits: smartsheet.com

Tips for creating an invoice for hours worked 

One of the many challenges freelancers face is how much to charge for an hour's work. From the start of a project, you need to decide a fair amount to charge for your effort while you remain competitive to attract more clients. 

1. Using a time tracker

The first that comes to mind before working on a project should be how to track hours worked effectively. While MS Excel and other manual methods could help, using a smart application would eliminate the chances for mistakes, especially when you work for long hours. There are online time trackers and billing software to help organize your work and convert your effort to an hourly rate into an invoice for hours worked. Some of these apps usually have in-built templates to automate hours and tax calculations, leaving you more time to concentrate on your job. 

2. Calculate billable hours

It is also vital you understand how to charge your client when it comes to billable hours. A billable hour is the time you spent on a project for which you charge a client. A billable hour and rate charged is based on a contractual agreement between you and your client. Professionals like lawyers and accountants often sign contracts that define billing methods with clients at the start of a project. In such cases, a billable hour may not be an actual hour per se, but the sum of tracked hours rounded to the nearest agreed time increment. 

3. Non-billable hours

Some freelancers use non-billable hours to invest and learn new skills so they can offer top-notch services to clients. Your rate and consequently invoice for hours worked should reflect those hours to sustain your business. However, that is a business decision for you to make, which depends on your goal and pricing strategy.

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