Contractor Invoice: Sample, Template & Invoicing How-to

Contractor Invoice Template

You can click the button below to go to the page to download the invoice template for your contracting business.

How to invoice as a contractor

Invoicing as a contractor is pretty similar to freelancing, but with a few key differences. Here's how to nail it:

• Use a professional template: Make it clean, clear, and branded. Many accounting software options offer contractor-specific templates.
• Include your details: Full name, address, phone number, and email. If you have a business name, use it.
• Add your tax ID: Use your Social Security Number or Employer Identification Number (EIN) if you have one.
• Client info: Full company name, address, and the name of your contact person.
• Invoice number: Keep 'em sequential for easy tracking.
• Project details: Describe the work done, dates of service, and any project codes the client uses.
• Itemize your charges: Break down your hours or project phases. Be specific!
• Rates: Clearly state your hourly or project rate.
• Total amount due: Make it bold and easy to find.
• Payment terms: Net 30? Due upon receipt? Spell it out.
• Payment methods: List acceptable payment options (check, direct deposit, etc.).
• Due date: Highlight when you expect to be paid.
• Any special terms: Like penalties for late payment or discounts for early payment.
• Purchase order number: If the client uses them, include it.
• Your contractor status: Some clients want you to state "Independent Contractor" on the invoice.
• Tax info: Depending on your location, you might need to add sales tax.
• Materials or expenses: If you're billing for these, itemize them separately.
• Time tracking: For hourly work, consider attaching a detailed timesheet.
• Project milestones: For long-term gigs, note which phase of the project this invoice covers.
• Your agreement details: Reference any contract numbers or agreements.
• Receipt: Contractors aren't typically required by law to provide receipts for their labor or services, but many contractors provide receipts anyway, as it builds trust and transparency.

Remember to keep copies of all invoices for your records. Stay consistent with your invoicing schedule – clients appreciate predictability. And don't be shy about following up on unpaid invoices. You've done the work, you deserve to get paid!

Common invoicing mistakes by contractors

Your invoice is often the last interaction in a project, so you need to make it count! A clean, accurate, and professional invoice not only gets you paid faster but also leaves a great last impression. The same thing applies for mistakes, that is why it is important to be careful to avoid mistakes. Here's a rundown of the most common oopsies to avoid:

• Vague descriptions: "Website work" just doesn't cut it. Get specific about what you did!
• Incorrect client info: Double-check that company name and address. You don't want your invoice going to the wrong place.
• Missing invoice number: Skipping this makes tracking a nightmare for you and your client.
• Forgetting the date: Both the invoice date and due date are crucial. Don't leave 'em guessing.
• Math errors: Use a calculator, people! Nothing screams unprofessional like botched arithmetic.
• Inconsistent rates: If you agreed on $50/hour, don't suddenly charge $75 without explanation.
• Lumping everything together: Break down your services. Clients love to see where their money's going.
• Neglecting payment terms: "Pay me whenever" isn't a strategy. Be clear about when you expect to be paid.
• Sending to the wrong person: Make sure you're invoicing the right contact, not just anyone at the company.
• Forgetting to include extra costs: Did you pay for software or materials? Don't eat those costs if they're billable.
• Mismatching the contract: Your invoice should reflect what's in your agreement. No surprises!
• Sloppy presentation: Comic Sans and hot pink? Nope. Keep it clean and professional.
• Waiting too long to invoice: The fresher the work, the faster you'll likely get paid.
• Not following up: Sent an invoice and crickets? Don't be shy about sending a reminder.
• Inconsistent invoicing: If you bill monthly, stick to it. Clients appreciate predictability.
• Omitting your contact details: Make it easy for clients to reach you if they have questions.
• Neglecting tax info: Depending on where you are, you might need to include tax numbers or charges.
• Over-complicating things: Keep it simple. If your invoice needs a decoder ring, it's too complex.
• Not keeping copies: Always, always keep records of your invoices. Your future self will thank you.
• Sending it to spam: Use a professional email address, not "coolguy123@mailbox.com".

What to include on a contractor invoice

Remember, clarity is key. The easier you make it for your client to understand and process your invoice, the faster you're likely to get paid. Keep it professional, detailed, and aligned with your contract terms, and you'll be setting yourself up for smooth sailing in the world of contractor payments!

• Your Business Details: Name, address, phone, email, and any professional license numbers
• Client Information: Name, address, and project location (if different)
• Invoice Number and Date: For easy reference and record-keeping
• Project Description: Brief overview of the job or project
• Itemized List of Services: Detailed breakdown of work performed
• Materials Used: Quantities and costs of materials (if applicable)
• Labor Costs: Hours worked and hourly rates or flat fees
• Subtotal, Taxes, and Total Amount Due
• Payment Terms: Due date and accepted payment methods
• Any Relevant Notes: Special conditions, warranty information, etc

Industry-specific considerations for contractors invoice

FAQ about contractor invoice