Contractors work as a person or business professional who offers services to various entities under terms mentioned in the contract. They can work as either full-time employees or independent contractors, each of the options has several benefits, but most of them choose to work as individual contractors. As an individual contractor, you must have to do a lot of invoicing to maintain a cash flow of your businesses. You might not be a professional for creating a sample invoice document, but it is essential to create invoices no matter what. To design, customize, save and send independent contractor invoice does not need any extra efforts to fulfill the core business goals like –
- Expense tracking,
- Automatic reminders,
- Time tracking,
- Credit card processing,
- Recurring invoicing and more.
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What Is An Independent Contractor Invoice Used For?
Each and every individual contractor work hard to provide high-quality services to their clients. They always try to maintain their professional impression of their business with a premium invoice sample for the services they have provided. An invoice that clearly lists each and everything a contractor has charged for –
- The hours worked,
- Travel expenses,
- Additional expenses,
- Taxes and more
Such a simple invoice template gets you paid faster and saves time you spend on calling clients and emails talking about invoices. This can be the easiest way to collect payment in your preferred payment method, whether that is bank transfer, PayPal or cheque, or any other payment gateway. You will be able to run the business the way you want to run, with more freedom.
Such a contractor invoice used to help you keep track of all the work you have done for the client, organize the client information, and know all about the payments (paid and overdue payment). Such contractor invoice templates are more efficient, effective, and profitable if you are using an independent contractor invoice template free of cost and also allow you to track all the important financial matters.
Why Using An Independent Contractor Invoice Template Important?
As an independent contractor, you must be busy in organizing every aspect of your business. An independent contractor invoice template is a chance to justify a variety of services through one contract, without making invoices conflict and confusing.
With these kinds of contractor invoice templates, you can provide your services with clearly readable invoices that support the charges you have included in your invoice. This also gives your clients peace of mind and letting them know that they are getting all the required details and for what exactly they are paying for. It will also decrease their questions and save your time from long calls. Apart from this, you can spend less time creating invoices from scratch and focus more on doing the important tasks of your business using a free printable contractor invoice template. To make your business more profitable it is essential to do work with minimum efforts.
How to Create an Independent Contractor Invoice?
Many people think that to create an invoice template you must have graphic design skills otherwise you won’t be able to create any kind of invoice, but, it is just a myth. Well, it is not that difficult to create any kind of invoices, in fact, any individual contractor can create it using some tips and tricks. The easiest way to outline the services you have offered is to create an invoice that includes all the necessary details and financial terms that help you calculate the rates per hour or project.
Let’s see how you can create contractor invoices in quickest ways:
Invoice Header – It is mandatory to include header (i.e. Business Logo) into the invoice template as the header will make it easier for your clients to identify from where they got the invoice. It also indicates the brand value the company has generated which will help the client built trust and settle the payment faster.
A unique invoice number – Whenever you create an invoice template, you must generate a unique invoice number for each invoice you create. It will help you monitor the invoices and help you find the invoice whenever it is required.
Invoice date – When you create an invoice you should indicate the invoice date to let the client know when you have generated an invoice. It will also help you track the invoices by date for accounting purposes. Make sure it is written close to the header where it can be easily seen.
Necessary business details – To help client contact you in case if they need to contact you regarding an invoice, you should mention your all the necessary business details such as your company name, contact information like address, email address, phone number, etc. You can also include these details in the header section or add that into a new section.
Client’s information – Client’s contact information is a must for any invoices you generate. The right address and right department mentioned in the invoice will help you get paid faster and avoid confusion during the billing process. You need to be very careful when you mention client details in your invoice because some companies have different billing departments.
Breakdown of provided services – You can breakdown the services using a 4-5 column table. In the first column, you can include the name of the services for the contracting work, in the second column you can have the description, in the third, you can have the number of hours worked, fourth will be the rate per hour and/or any other labor costs, in the last one, you should include subtotal for each service.
Total amount due – Once you have mentioned all the services and rates you have charged, you need to mention the total amount due along with the applicable taxes. This will help the client know the exact amount they need to pay.
Payment due date – Some clients think that they can pay whenever they want to pay. To break the myth you must include payment due date in bold letters so that client knows exactly by which date they need to make a payment.
Special Notes – If you want to create a professional impact on the client, you need to appreciate the client by thanking them for writing a personal thank you note using the space for the special notes.
Benefits of Using an Independent Contractor Invoice Template
The core benefit of using an independent contractor invoice template you don’t have to spend extra time in designing the invoices from scratch.
A contractor invoice template offers many benefits such as:
- Available in various formats such as .doc, .xls, .pdf, .csv and more
- Temples are free of cost
- Free to edit and send
- Customizable fonts, colors, images and more
- Space to mention proffered payment method
- Maintain finances for tax time
- Organize client information
- Monitor overall accounting process
Why Independent Contractors Need Invoicing Software
A free contractor invoice template using invoicing software or invoice generator contains all the necessary features that will be helpful in creating professional good looking invoices. It offers features to enhance your branding style of invoicing under which your business operates. Such software will help you get updated invoices on time to use as tax documents.
Individual contractors need to choose the right kind of invoicing software to prepare accurate invoices. By doing this contractors can conquer almost all invoicing problems they have suffered in the past. The invoicing tools make it easier for individual contractors to be more specific with the information they include in the invoice template. Also, it is the best way for contractors who want to include unmatched details into an invoice.
The best thing about using invoicing software is it enables contractors to create, edit, send, and print a contractor invoice from anywhere in the world. Basically, if you are an individual contractor you can generate invoices at your own leisure and pleasure.
Another reason for using online invoice templates or invoice generators is contractors can also send multiple invoices all at once. It will help you doing multitasking activities without compromising on the other accounting activities you are performing. Also, it allows contractors to view all the details and records of their clients through one platform because in the software or tool all the data is saved in the cloud.
As everyone knows that a contractor usually works on multiple projects every day and they have to produce numbers of invoices within the shortest time possible.
1. How do I invoice as an independent contractor?
Answer: If you are an individual contractor and want to invoice another person working like you, you need to send them bills the way you send to your other clients. You need to include the same kind of elements you include for your regular clients.
2. How do you write an invoice for a contract job?
Answer: Writing invoices for a contract job is not that difficult, it is similar to write any other invoices. You must need to make sure you include all the work you have done for the contract job. The detailed description will help your clients understand the work and the rates you have charged for the service.
3. How do contractors bill?
Answer: Contractors bill the customers by sending invoices as soon as they complete the task, which is mandatory to get paid quickly. They include all the essential information such as work, hours, and rates in their invoices, and with a detailed description that helps their customer and/or business partners to get the maximum details to make payments quickly.
4. Does an invoice need to be Itemized?
Answer: Yes, all the invoices you create should be itemized in a way that clearly indicates the details about the work you have done. If the customers don't get the details clearly there are chances that they will delay the payment and may not like to pay. So it is most important to either itemize all the details in your invoices or use itemized invoice for quick turnout. This will not only help you get paid on time but it will help you be professional at the same time.
To keep the cash flow steady it is important to track the expenses accurately. Many contractors do make common mistakes while tracking expenses, managing client data, organizing billing data, and get paid on time. To avoid such errors you must choose the tools that help you with all the required features not just limited to template for invoice. We at MixBit help you choose the best suitable invoice templates through our in-depth blogs about invoicing processes and invoicing templates and help you avoid making mistakes while preparing invoices.