invoicing best practices for consultants and contractors
TRANSCRIPT
Invoicing Best Practices For Consultants and Contractors
Contents1.Introduction2.Ask For Advance Payments3.Keep The Billing Cycles Shorter4.Sending Invoices On Time5.Early Payment Discounts6.Go Paperless7.Use an Integrated Time Tracking and Billing Solution
Introduction● Billing and payments for consultants and contractors is purely dependent on
the nature of the contract that one has with the client. The contract agreement can be milestone based or periodical. One has to send out invoices on the basis of the details mentioned in the contract.
● Additional expenses are either included in the pricing of the service provided or as an additional charge as per actual. This too, is dependent on the kind of agreement one has signed. Here are some tips and best practices for billing for consultants and independent contractors.
Ask For Advance Payments● As a consultant you always want to get timely payments for the services
delivered. Besides that, chasing for payments after the services have been delivered, can be very painful.
● Having a policy of advance payments is useful and one feels financially more secure and are able to deliver better services in such a scenario.
Keep The Billing Cycles Shorter● It is important to keep the billing cycles shorter for receiving payments on-time.
For example, weekly or monthly billing cycles, should be preferred over
quarterly ones. ● This helps in faster completion of payment cycles and keeps the payments
flowing. Similarly, even while billing for milestones, one has to insist on shorter
milestones, to get faster payments for the services delivered.
Sending Invoices On Time● Whether you are billing for milestones or monthly, you must ensure that the
invoice is sent on the very date, that it is supposed to be sent. ● This ensures that the client does not pay up late, while giving an excuse, that
the invoice was not sent on time. Using an online invoicing solution helps in
sending invoices quickly and cost effectively. This also helps you focus more
on your consulting business.
Early Payment Discounts● Many consultants and independent contractors,, provide early payment
discounts for getting paid quicker. This helps in incentivizing the clients for faster payments. Some consultants also penalize clients for paying late.
● Online invoicing solutions provide features like late fee and interest payments for getting clients to pay extra for paying late.
Go Paperless● Sending invoices online, is the norm for consultants and independent
contractors in today’s time. Online invoicing helps in sending out timely invoices in a cost effective manner.
● An appropriate solution helps in easily managing and tracking a large number of invoices. Sending out professional invoices is easier while creating and sending them online. The process is far more efficient and reduces invoicing errors, many times over.
Use an Integrated Time Tracking and Billing Solution● Sending invoices online, is the norm for consultants and independent
contractors in today’s time. Online invoicing helps in sending out timely invoices in a cost effective manner.
● An appropriate solution helps in easily managing and tracking a large number of invoices. Sending out professional invoices is easier while creating and sending them online. The process is far more efficient and reduces invoicing errors, many times over.
Choose The Right ToolAs a consultant or a contractor, it is important to focus on the core services offering on a continuous basis. But, at the same time, one must also take invoicing clients and receiving on time payments equally seriously. Payments are the lifeline of your business and must be given top priority. Know more about how to send professional invoices and get paid on time. You can also read about time vs project billing from this post and some key essentials of time tracking.Choosing an appropriate consultant online invoicing solution like Invoicera is helpful in getting a host of interesting features and sending out invoices in a timely manner.
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