An hourly invoice is a request for payment sent by either a freelancer or a business that charges for labor by the hour. This type of invoice will contain information describing the type of work done, the hourly rate charged, and the number of hours worked.
Hourly invoices are most frequently used by freelancers and contractors, but can be used by anyone who bills an hourly rate. Or the template can be easily customized to be used by anyone where an hourly rate is part of their billing process.
Some examples of specific jobs that may bill hourly and benefit from an hourly invoice template are:
Templates are a boon to any small business, with a multitude of benefits. Here’s a quick rundown of a few advantages to using our hourly invoice templates.
With prebuilt formulas and formatting, our hourly rate invoice template is ready for you to create and fill out with the unique details of the services provided. Simply fill in the customer details and the services rendered and you have an invoice that’s ready to send, without missing a single detail.
Skip the manual calculations that come with risks of errors. Our free hourly invoice template handles the calculations for you so you’re confident in the billed amount. Save time on the review process as you only need to confirm each line item without double-checking the calculated totals.
Customize your hourly rate invoice template with branding to give it a professional appearance. You don’t need to be an Excel expert to send professional invoices since all the formatting is done for you. Add some personal flairs and your invoices will be uniquely yours.
Consistency is key when it comes to your recordkeeping. By using a template, you’ll know exactly where to look to get details from past invoices. With consistent use, you’ll get insights into how your billing has changed for individual clients, trends across customers, and have complete clarity into each transaction.
Avoid billing disputes with clear, itemized breakdowns of your billed services. Your customers will know exactly what they’re being billed for and what amount. By providing a breakdown, customers are less likely to push back on a finalized total amount.
There are several ways to go about this, depending on what software you are comfortable using and your business needs. For example, a simple Word document may suffice if your hourly invoices just consist of, for example, billing for the same 40 hours of work each week. However, if you are breaking down hourly work into multiple tasks at different rates, you may need a spreadsheet to do the math for you and come to the total amount.
The most important factor is including all of the necessary information, including:
Of course, you can make this much easier by downloading one of BILL's easy-to-use hourly invoice templates.
As with any financial document, you should take care when editing your hourly invoice to ensure that it contains all of the information your client requires to understand what they are paying for and how to pay for it. Following these simple instructions should enable you to do this:
Before you even consider working on your hourly invoice, you should ensure that you have a reliable method of recording your work. This can be an Excel spreadsheet, a Word document, or even a piece of paper where you jot down your details as you go along. The important thing is that it’s accurate and complete.
Once you have this information, you need to consider your client’s requirements for what information they need to see. To do this, you need to have a conversation with them, or it may be a standard for your industry. For example, if you are a window cleaner working on an office block, you may simply need to write “window cleaning – 40 hours.” However, some clients may require a breakdown of hours per day and more details, such as:
The key is to ensure that your client is getting the information they expect in a clear and usable format. Research what is expected in your industry and have clear conversations with clients before undertaking work.
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Invoices are best sent by email or by physical mail.
If you choose to go through email, download the completed invoice template as a PDF and attach it to the email. Do not send it as an XLSX file or other editable file type as it can be altered once received.
In the body text, include a short message that mentions the invoice number, billed amount, due date, and payment information.
If you choose to use physical mail, print off the invoice and send it with the necessary postage. However, you should allow for extra processing time for the invoice to arrive before payment.
It should also be noted that an invoice sent by physical mail is at risk of being intercepted and used for invoice fraud. Be aware of the risks of physical mail and consider a switch to a digital alternative.
Email is also significantly easier to follow up on as it has a clear paper trail. Simply follow up on the same email thread without worry about whether delivery was successful.
An hourly invoice can include anything beyond your hourly rate. Some examples of additional charges to include are:
Hourly invoice templates are completely customizable. No matter what you’re billing for, you can adjust the invoice to include it.
An hourly invoice template helps improve the invoicing process, but there’s more that can be done to save time, reduce errors, and improve your experience:
Ready to revamp your invoicing process? Reach out to schedule a demo of BILL and learn how we can save you time and effort on getting paid.