Are you a contractor looking for invoicing tips and invoice templates? Check out this comprehensive guide to invoicing for contractors, with free templates that help you streamline your invoicing and get paid faster.
Invoicing for contractors—why is it so important?
Invoicing might seem like just another boring task, but it’s one of the most important things you do as a business owner.
There are several reasons why invoicing is important for contractors:
- Most importantly, invoicing helps you get paid for the work you do.
- Invoicing helps you keep track of how much money a client owes you and when you can expect to get paid. Without this documentation, it’s hard to keep track of your finances and to make sure you get paid on time.
- Invoicing is also important for tax and accounting purposes. As a contractor, you have to keep track of your income and expenses to do bookkeeping and pay the correct amount of tax. This can be a bit of a headache, but proper invoicing makes it a lot easier. Also, if you document your expenses, you can claim tax deductions!
How to invoice as a contractor
When it comes to making invoices, you’ve got a few different options:
Manually: Download a contractor invoice template, edit it in a program like Microsoft Word or Google Docs, and print it out or send it as an email attachment. Making invoices in this way can be a bit time-consuming, and you run the risk of human error, but it’s a simple way to get the job done.
Invoicing software: Our favorite pick! Try a free online invoicing software like Conta, where you can create the invoice in a few seconds and send it directly from invoice software to your client’s email address. The main benefit of invoicing software is that you can create invoices faster because fields like invoice date, invoice number and your contact information are filled out automatically. Additionally, the invoice software stores all your invoices safely. In Conta it will soon be possible to set up automatic reminders to follow up on late payments, which can help you save a lot of time.
Invoicing for contractors: An invoice example
Struggling to create a professional invoice for your business? Check out this sample construction invoice as a starting point:
Five things you should include in a contractor invoice
As a contractor, there are a few key elements you have to include in your invoices to make sure they are valid and that you get paid for the work you’ve done.
Here’s a list of what you should include in a contractor invoice:
1. Contact information
Make sure to include the name, business name, address, phone number and email address of both you and the client. This way, the client knows the invoice is meant for them, who sent the invoice and how to get in touch with you in case they have questions.
2. A detailed description of the work you’ve done
Be clear about what you’ve done and include details like how many hours you worked, the project you’ve worked on, the costs incurred and other relevant information. This way, you help client understand what they’re paying for and avoid any misunderstandings.
3. Payment terms and conditions
You should include information about when the customer should pay you and how you want them to pay. Also make sure to state that late payment fees will occur if the client doesn’t pay on time, to incentivize timely payments. These are the different payment terms you can set.
See also: How to invoice clients and get paid early
4. Invoice number and date
Include a unique invoice number, the invoice date, and the date you delivered the products or services. This makes it easier to refer back to the invoice in future, and is also legally required in most countries for accounting and tax purposes.
5. Total amount due
Include the total cost of the goods and services rendered, along with taxes and discounts, if applicable.
Invoicing tips that will help you get paid fast
Only 41.5 percent of B2B invoices are paid on time. If you want to become one of the businesses that get paid on time, you should do the following:
First, be clear about when the payment is due and the consequences of paying late. Try including this in the payment terms section: “Payment is to be made within 14 days. Please note that a 1.5 percent monthly interest fee will be applied to any invoices that are paid past the due date.”
Next, make sure that you send the invoice immediately after you’ve completed the job. The faster you send out your invoice, the quicker the client can pay you.
It is also important that you send payment reminders as soon as a client fails to pay on time. By doing this, you will remind the client of the outstanding payment, and at the same time demonstrate your professionalism.
Contractor invoice software
Conta is a free invoicing software for contractors and small businesses that helps you streamline your invoicing. The software guides you along and saves you time. With Conta you can
- create and send professional-looking invoices in seconds
- customize the invoice template with your business logo
- keep track of payments
- send late payment reminders automatically (coming soon!)
- create recurring invoices that are sent automatically (coming soon!)
Contractor invoice template
If you chose to create contractor invoices using templates rather than free invoicing software, you should know that you can download free contractor templates online.
Get the free PDF invoice template and edit it in Word, Excel, PDF and Google Docs. Then send it to your clients via email or WhatsApp.
Looking for free invoice software?
Look no further! With Conta, you can easily create, send and manage invoices for free. Try it today and experience the benefits of invoicing software tailored for contractors.
