In this topic, I would like to brief you upon hourly invoice. When I mean hourly invoice, then it is clearly understood that it is a bill generated to get paid from customers for any task completed on an hourly basis.
Let me not confuse further and coming to the point, hourly invoice means a document created that has details about the work done and the cost expected on an hourly basis. The hourly invoice template is one of the invoice documents that are used to record the hourly wages of the employees. In this template, including freelancers can enter the required information and number of hours worked in a day.
So it is easy to calculate the hours and pay the wages to them easily. This invoice is useful for laborers, contractors and other service business who works on an hourly basis.
For example, a consultant who does IT projects will get paid not only based on project completion but on the time invested. So every hour he works is billed and an hourly invoice template is required.
If you are providing services for which you want to charge on the hourly manner, then you can continue reading further. Yes, we have provided details about hourly invoice template, how to create one, edit the components, the effective ways to utilize them.
Also, it feels good to announce here that we have collected templates and made them available here for your perusal. Yes, we charge nothing but looking for your comments to improvise on the template collections.
Come let’s understand in detail about hourly work, wages, and invoicing.
Components of Hourly Invoice Template
In the hourly invoice templates, various information is required such as contact information, work details, charges etc.
We will understand each component sections.
First things first, we shall start with the heading and logo. The first part of the template is the place for inserting your business logo on the top-left corner of the template. You need to insert your company logo if you have any. This is optional. However, you must give a heading to the invoice. It can be generic as Hourly Invoice or specific like Hourly Invoice for Manual Testing Job etc.
Next, comes the contact details. This will be done right below the heading and provide your company contact details followed by the client address. Include your company physical address, email id, website address, and phone number. Provide details of the client as well.
Then the invoice number and date The right side of the template is the place for invoice number and invoice date. The invoice number is the unique number for identification and mention the date of the invoice.
Now comes the important section Yes, the work-done details, charges, and description. This you can make it as a table. Begin with headings and fill details below them one by one. A sample table is given below for your reference.
|Nature of Work/Work Description
|Number of Hours Worked
|Cost Per Hour
|Total Cost = Number of Hours worked X Cost Per Hour
These pieces of information will help you to calculate the payment quickly and you can also make them in excel sheet that has built-in formulas.
Coming to the end The bottom of the template shows the subtotal of the payment, tax rate, total payable amount etc. Write any remarks and then leave space for signature.
Tip: Since hourly invoice template is a service invoice document for tracking your working hours and get paid to make sure you include all components mention and also fill the necessary information with much care.
What You Should Avoid While Making an Hourly Invoice Template
While designing the invoice template form you must be clear what you should not add on this hourly invoice. This is because an invoice should be simple and understandable to both the sender and the receiver. Let us keep it simple and not complicate. It is important to understand the components of the hourly invoice which you did reading the above paragraph.
At the same time, don’t you think it is equally important to know what must be avoided in the invoice? I am sure you agree that it is a valid point. Hence I am summing up some common mistakes which people do when making an hourly invoice and requesting you to avoid the same. We always want you to be professional.
The design of the hourly invoice template should be simple and understandable. Do not include terms and conditions in the invoice and make it a lengthy document. You can attach them separately in case you want to let know the customer on your terms. Alternatively, mention them behind the invoice. Do not write the terms on the invoice. The invoice should have the name, contact details, payment calculation or breakup and the total cost to be paid and nothing otherwise.
Avoid using vague language when writing an invoice. For instance, different country talks about Tax in a different manner. So, understand the client base location and use the right communication.
Don’t make your invoice look clumsy, make proper columns and provide details individually. Do not let customer assume details and give clarity.
Finally, you should avoid common mistakes like spelling errors, incorrect symbols and poor formatting of the template. These all mistake will make your invoice into an unprofessional one.
Freelance Hourly Invoice Template
Freelance Hourly Invoice Template can be used by an individual or group of people who do not work on roles of the company but does project and get paid. Why should such freelancers use an hourly invoice template?
Come let us throw some light on that.
- Freelancers may not have a registered company but still, have to pay tax for their earning and the invoice is a document which will help them file their tax.
- It is a professional document that allows customers to treat freelancers at par with companies.
- Freelancers can record their hourly work to get paid and need not wait for the project completion.
- The freelancer hourly work invoice template will help the individual to keep a track of their work.
- Also, the customers will know which freelancer worked on what project and how much has been paid.
Therefore this document helps both the freelancer and the client to send and receive payment, record the work, pay tax appropriately.
Key Components – Consultant Hourly Invoice Template
The consultant hourly invoice template can be used by companies that outsourced their resources to client place for completing whole projects or part of a task. It includes jobs in IT consulting service and other consultancy business. The consultant invoice template should be designed to track the hourly charge for the consultant.
Few projects may require multiple consultants to work and companies require to charge the client for each work. Some consultants will be paid more than the other depending on the nature of the task.
Apart from the usual elements of the hourly invoice, the company can include following additional columns as given below.
|Nature of Work/Work Description
|Number of Hours Worked
|Cost Per Module
|Total Cost = Number of Module worked X Cost Per Hour
You can see a few headings highlighted in red and yes they are the finer details in a consultant hourly invoice. When you send your consultant to work at the client place, then they may work on partial modules. This will demand you to make calculation precisely and raise an invoice.
The invoices given here are carefully vetted and feel confident to use them to get paid for all your consultant’s services at the client place.
Hourly Pay Invoice Template
When your company send the resource to work in client place to complete work that requires only a few hours, then it is good to use the hourly pay invoice template. For an ongoing job, you may use the monthly invoice. But for such small assignments, it is good to calculate hourly work done and collect the fees.
One best example for an hourly pay can be the Data Entry work. Yes, on the absence of a permanent employee, clients may require a substitute to complete the urgent assignment. You can send your resource to fill the gap and calculate the hourly payment. Submit the invoice immediately and request for payment. However, it depends on the terms you discuss with the client.
Hourly Contractor Invoice Template
Contractors are the workers who provide many services on a contract basis like business consulting, tutor service etc. The hourly contractor invoice template is used to give the payment by calculating the working hours to the contractors.
The components of contractor invoice are a company name, client name, due date, the rate of work, hourly rate, total cost, materials used and the final payment details.
Contractor invoice template can be downloaded from here for free which is a fully customizable based on your need. In this contractor invoice, you can include your business logo at the top of the template and add or remove the fields or section from the template to use them and get paid on time.
Hourly Service Invoice Template
Ok, I agree so far we have been talking about IT jobs, writing, and data entry. Do you know? There some services like pest control, house cleaning, gardening, etc which can be provided on an hourly basis. If you are running such a company, then you can get invoice templates too. Yes, hourly service invoice template will allow you to calculate charges for the service provided per hour.
You could send a person who does multiple services and charges a different rate depending on the task. Here you can use this template. Mention each service, charges per hour, and hours worked to find the total amount to be paid.
What is Billable Hours Invoice Template
There are clients who require staff on full-time but not on roles. You will send your consultant for work to such places. These clients will, however, pay only for the hours the consultant worked and not for the time he/she spent in the workplace.
Which means the payment is calculated for the assigned work done in the project and not for the whole time spent. IT companies require people to do some part of the task in a project and that is when these templates can be used.
Invoice Template for Hours Worked
Invoice template for hours worked is the invoice created for paying the wages for the number of hours worked.
Invoice templates help to have the record of hours taken to complete a project. Also, you can maintain the transaction information of your company.
How to Bill Clients & Send Hourly Invoice in a Proper Format
Billing client is important to collect payment for your work. Only you get paid, then you can play your consultants. Therefore follow the simple tips given below to bill clients and send the hourly invoice in the right format.
- Either prepare an invoice in a word or excel format including the components mentioned in this article or quickly download out the template and get going.
- Save the invoice with the date and invoice number for easy tracking.
- Send the invoice via email or physical post at the right time after the task is completed based on the terms you agreed with the client.
- Provide all billing details clearly in the invoice using the description and cost column which allow the client to pay you without any hassles.
Sample Terms and Conditions of Invoice
Even though terms and conditions are not mandatory to be given in an invoice as it should be mentioned as part of the agreement. But, few details like the one stated here under can be given in the invoice at the bottom or behind for a quick payment.
Terms regarding the payment – Time when the invoice can be raised after completion of work. Duration for receiving payment. Eg, Bill can be raised on the same day of work completed and payment to be released within 48 hours of the invoice sent.
Mode of payment – Pay using a cheque or bank transfer and the details for the same is given below. The amount payable to, IFSC code, Bank name, location.
Late Payment – Late fee of 2% on the total bill amount including tax will be collected if the payment is released after 48 hrs and 72 hrs of the bill raised, 5% late fee for payment beyond 72 hours and 96 hrs. Legal action will be taken when payment is not made with 96 hrs.
Note: These are just samples and you can include your terms based on the business and your agreement with the client.
What Types of Businesses Can Use Hourly Invoice
The jobs which don’t have any completion time for the project can go for the hourly invoice process.
The hourly based invoice is well-suited for the creative job, photography, contractors, freelancer, IT consultants, finance consultants and other service providers.
Use these templates for free and remember to choose the right hourly invoice template based on your work. Billable hours invoice must be used when you want to get payment for the hours client agreed to bill your consultant; freelancers must make use of freelance hourly invoice and so on.
Wishing you good luck to get paid for every single hour you worked using our templates.