Invoice types should be considered carefully when freelancing so that you can stay organized without spending too much time on it.
Here to help you keep your invoices organized is a breakdown of the three most common invoice types for freelancers:
- Fixed Price,
- Hourly Rate, and
- Project-Based.
FREELANCE INVOICEs
What Are Freelance Invoices?
Freelance invoices are a form of payment that is given to an independent contractor for work completed.
The invoice is typically provided by the employer to the freelancer and will contain all of the necessary details about how much money needs to be paid, what date it’s due, and any other information relevant to the transaction.
Invoice Types For Freelancers
Fixed price means that the client pays you for whatever amount of time it takes to complete their request regardless of whether that’s 10 hours or 100 hours.
The hourly rate is what you charge per hour (or part thereof) for your services and it should be spelled out in your contract so there are no surprises down the line when bills come due.
Hourly rates can vary depending on the pricing of a freelancer.
Project-based is the type of invoice, which is paid after the fact for the completed project, but the client can always ask for changes to the final version.
Can I Invoice As An Individual?
The answer to the question “Can I invoice as an individual?” is a resounding yes.
The first thing you’ll want to do when setting up your accounting system is deciding which type of entity should be used:
- Sole Proprietorship or
- LLC.
Once that’s done, it’s time to create an account in QuickBooks Online or other software.
There are many articles online that can walk you through these steps so we won’t go into detail here; instead, let’s look at the next step – generating an invoice.
Whether you’re a new freelancer or an established business, invoicing and payment are one of the most important parts of your work. That said, it’s not always clear what type of invoice to send out as a sole proprietor.
There is a tonne of great (often free) online tools and apps to quickly create invoices. You can save templates, customize the ones you have and even re-send your invoices using these apps.
A few of our favorite online tools for creating awesome freelance invoices:
Hubspot Invoice Template Generator
The Best Invoicing Method For Freelancers
Freelancers face a lot of challenges, especially when it comes to invoicing.
Freelancers often don’t know how to invoice for their work and they are afraid that if they send the wrong thing or something that is not right, then they will lose out on business.
A simple template is an Excel spreadsheet with fields for:
- the date of service,
- the number of hours worked and hourly rate,
- total hours charged on that date (including fractions),
- rates per unit,
- total charges for that day (including any applicable taxes), and
- the total which reflects your final invoice amount.
The spreadsheet also includes space to list out all the work performed during the job. More than just an invoice template, it provides a useful record by including columns to summarize pieces completed as well as those still in progress at the end of each day.
Freelance editors often have to keep track of their invoices for work that they do. But sometimes, it can be hard to remember the invoice you’re looking for and what needs to be done with it when it’s found.
That’s where using a freelance editor invoice template comes in handy! With this template, you’ll not only know which invoice is being referenced but also how many hours were spent on the task at hand and how much of your fee is owed by the client.
Plus, there are even spaces for notes on why something was changed or if there were any complications during the editing process! It will save time in finding an old invoice while ensuring that everything is up-to-date with current information.
How To Invoice For Freelance Work
As a freelance worker, you are responsible for invoicing your clients and collecting payment from them. It’s important that you’re up-to-date on the proper way to invoice your clients.
There are many different ways to create an invoice, but some of the most common include creating an Excel spreadsheet or using invoice software online like FreshBooks or Xero.
The first step is to come up with a name for the client so they know who created their invoice and what it’s about.
Next, list out all of the services performed by date, which will be helpful when calculating how much money should go into each line item (i.e., labor hours worked). Finally, mention any additional charges such as taxes or fees.
We hope you’ve found this guide to creating a freelance invoice helpful.
Have you created your freelance invoice yet? If not, get on it!
