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As an independent contractor, your job is to make sure that the work you’re doing is not only done properly but also your client or customer has the proper invoice for it.
If they don’t, there’s a good chance you won’t be getting paid on time or at all. In most cases, payments are delayed because independent contractors forget to send their invoice.
Our word of advice is, do not begin the work until at least 50% of your payment is received. The ideal situation would be 100% but you need some thing on the table before you begin the work.
There’s lots of horror stories when it comes to the invoicing and independent contractors, so we want to make sure that you do the right thing for yourself.
How to invoice your client as an independent contractor?
Depending on the job you can either invoice your client as a one time payment kind of deal, charge them hourly or use a combination of two.
You also have to make sure that you are charging for the products and services at any additional things that you may have added on your own.
Obviously, you want to make sure your client is aware of all these changes prior to sending the invoice but make sure it’s on there.
To make things easier for your client/customer, you can send multiple invoices breaking down so it’s easier for that as well. We highly recommend that you ask your client first on what kind of Invoice do they prefer.
Would they like to be billed one time right away or would they prefer multiple invoices. Everyone has their own style of working, so we highly recommend that you have open communication with your client or customer.
Invoicing hourly versus one time
Now there are advantages and disadvantage is to both of these ways. Hourly seems to be the most common way for independent contractors. You can simply use our Invoice generator, Change the quantity tab to hourly and after you go.
Although this is the most preferred way for independent contractors to use, we would like you to start looking at one time charges. Reason for that is sometimes the job can take longer than predicted. I’m sure you’re well aware of that. In this case a one time fee would actually work great for both parties.
Your client or customer would know how much they have to pay you and you would have the same information. So whether you finish the job more than a certain number of hours or before it both of you are well aware of the pricing. This helps in establishing long-term relationships.
Main reason is because it’s easier for you and the client/customer to work with you.Another great Reason for charging a one time fee as you can charge a lot more than what someone would pay on an hourly basis.
You can name your price, and get paid for it. No matter how long it takes you to do the work. Obviously this works for independent contractors who are well-established and have a good name in their own industry.
Of course each job each industry is different, however, we wanted to share some of our own feedback that we as independent consultants and contractors have experienced. One thing you’ll find at code 3, is real information from real people.