The question of “how to invoice as a contractor” has no simple answer. You’ll base your decision on factors such as:
As a contractor, you must know how to invoice your clients while also maintaining some level of flexibility. This helps establish a mutually beneficial system that brings efficiency to the entire process.
Knowing how to create a contractor invoice is an essential skill. Without this, you may find it difficult to get paid in full and on time. When that happens, you can end up spending more time chasing money and less time providing high-quality service to your clients.
Here are some simple steps for writing and sending an invoice as a contractor:
Make sure not to take this for granted. Make it clear to your client that you’re sharing an invoice with them. Label the document as an invoice and include a unique invoice number and date.
As a general rule of thumb, include your name, address, phone number, and email address on the invoice. You can also include your company name and logo if applicable.
Just as you included your business information, you should include the same details for your client. Company name, address, phone number, and email address are important, but you should also add your contact’s name and their department.
Create a list of all the services you provide, with as much supporting detail as possible. The more you include the less likely it is that your invoice will be rejected for payment. At the very least, include:
Once you write out the details of your service, provide the total amount due and payment terms. Here are some tips:
Now that you know how to invoice as a contractor, let’s talk about some of the most common invoicing mistakes.
It’s okay if you make one or more of these mistakes. Learn from it and do your best to avoid a similar situation in the future.
Although usually not included on the invoice to your clients, make sure that you also keep track of your business expenses so you don’t have to start from scratch at tax time.
If you’re on the other side of the fence—a company that employs contractors—it’s just as important to have a firm grasp on the ins and outs of invoicing.
At Oyster, our system makes it easy to collaborate with contractors on everything from onboarding to invoicing. Here’s what we provide to keep things fast and simple:
When you add the ability to hire unlimited contractors for free, it’s easy to see why so many employers turn to Oyster for all their contractor management needs.
Oyster is a global employment platform designed to enable visionary HR leaders to find, hire, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
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