A contractor invoice is a document wherein a contractor bills a company or an individual client for the items or services he provided. Most of the time, this invoice shows the exact amount of items the contractor has provided, normally comes in hourly or flat-rate charges. Normally, a contractor invoice also has details about the contractor’s methods of payment. For example, it might say that the receiver of the invoice has a specific number of days wherein he or she is going to pay for the amount recorded on the invoice. The contractor also might list the suitable methods of payment if needed.
Contractors are different from employees, so they most of the time, they don’t depend on the automatic payment with the payroll system of the company. Basically, they’re independent workers who are freelance. In order to get payment for the services the contractor offers, he or she must prepare a contractor invoice and present it to the client.
Company details: The first part should be the details of the company asked for service. The following details have to be included on the invoice:
1. The name of the company or the client
2. The address of the company or the client
3. The contact details of the company such as telephone number, email address, and website.
4. VAT registration number
Invoice number: All of the invoices must have a unique invoice number. Even though it is known as a ‘number’, it can also include some letters. A typical method is to preface invoices with letters that specify the client.
Dates: Here are the dates that should be included on your invoice:
1. The date when the invoice was prepared.
2. The due date or the date in which payment has to be settled. Most of the time, contractors set 30 days after the invoice date was given to the client.
Client details: The agency name, or if contracting directly then the details of the client.
1. The description of the service that was provided.
2. The total amount due.
3. If you’re VAT registered, then the VAT due.
4. The due total amount.
Payment terms: Here you should specify which payment method you prefer.
Step1
Write in the invoice number in the upper right-hand corner, under the contact details. The numbering technique you use depends on your personal preference, but every invoice must have a number allocated to it for filing purposes.
Step2
Write in the present date in the upper right hand corner, just under the invoice number. There is also a better way of writing the date, if you are going to write the date, follow this format for example: 2015/09/30. Keep the date in numerical form and in the year/month/day format so it is going to be easy to sort.
Step3
List in the billing period under the date you make the invoice.
Step4
Write the due date. This date should depend on the agreement you and your client agreed on, but usually, due dates are about 30 days from the day invoice was made. Ensure that you specify that that’s really the due date.
Step5
Put the details of your client in the upper left hand corner, just under the contact information of the company and throughout the invoice dates and number.
1
Give Clients What They Need
While your invoice must always have standard information like your billing date, address, and other important line items, you must not forget that some clients might need additional details.
If the processes can support this, make the invoice once the work is complete instead of waiting until the first day of the month.
You can email PDF invoices to your clients.
4
Consider Online Payment Options
Don’t delay sending mails and help your client to process the payments with comfort by offering online payment choices.
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