How to write an invoice for contract work.

Learn more about invoicing as an independent contractor and how to create a contractor invoice template that you can use in your own business.

Accurate invoicing is an essential element of accounting for any independent contractor or small business owner. Whether you charge by the hour for your services or work at a flat rate, a clear, easy-to-read invoice will help ensure you come across as professional and get paid on time.

How to create your contractor invoice.

Creating an invoice for contract work can be as simple as creating a professional document, such as a PDF. You can use free templates, or make your own that you can update as your projects and client base evolve.

There are considerations to be made for each type of creation method. We’ve listed them below:

• Free templates: While these can be handy, they may not be as extensive as you need them to be. Be sure to explore them fully before use to make sure that nothing important is missed.
• Paid templates: These are often procured through a software (like your CRM) or legal service. Be sure that they are comprehensive enough for your needs, and that you feel that you’re getting your money’s worth.
• DIY templates: DIY can be a precarious idea in certain areas of business. However, creating your own invoice is generally safe, so long as you have everything clearly laid out to avoid client disputes or confusion.

Contractor invoice software.

Using accounting software is another option for invoicing. Most accounting software programs offer the ability to generate professional invoices quickly, and you can also save these templates to reuse later. However, some software might not offer the degree of customizability that your business needs.

As you search for your software, there are two main things to evaluate to make sure you’re getting the best possible value for your cost:

• Customer service. Everyone runs into problems sometimes. Evaluating your software based on customer service availability can save time and lost cost in the event of a problem. Plus, these specialists can expedite your onboarding and training period.
• Customization capabilities. Certain software options may be more flexible than others. Determining which software offers a free trial (and actively trialling it) can help you feel confident that you’re making the right choice.

What to include in your invoice for contract work.

Whether you use accounting software or decide to create your own invoicing template for contract work, there are essential line items you should include in every invoice. These details include:

• Your name (or company name) and contact details
• Your client’s name and contact details
• Date of invoice
• Invoice number
• Itemized list and description of services
• Date or duration of service
• Pricing breakdowns, such as hourly or flat rates
• Applicable taxes
• Total amount due
• Due date
• Applicable penalties for late payment
• Any other relevant information

Creating your contractor invoice template.

If you find yourself invoicing often, it would be beneficial to create a personalized invoice template for your contract work in order to save time. Make sure the document includes the necessary line items discussed above and has editable fields. Then, you can simply edit the variables as they change with your business, such as your rates, hours worked, line items, or client information.

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