You’ll use your invoice to get paid for your consulting work.
Sending a complete and clear invoice puts your clients at ease because they know they are dealing with a professional. They can easily see the services and products they are paying for and when the payment is due. A well-designed invoice leads to fewer questions about amounts, payments, and deadlines.
Accepting multiple forms of payment is easier now than ever before. List the forms of payment you accept on your invoice and invite your customers to choose the easiest payment method.
Another benefit is the space your invoice gives you to show off your consulting skills. Without going overboard, make sure your invoice looks excellent. Every element should demonstrate your professionalism and commitment to quality.
You can use your consulting invoice to bill clients for all the areas of your work:
Whatever services you are billing your clients for, using a single form of billing will make life simpler. Connecting your invoices to a payment system and bank account will help you keep track of paid and unpaid bills easily.
You can bill your clients by sending them an invoice. There are a few things to get right with your billing. Here’s a short list:
That’s it! Those are the basics of how to bill someone for your work.
Consultants charge by the hour or by the project. Hourly rates range from $25 for new marketing consultants up to $300 for tax specialists and experienced marketers. Project rates are worked out by estimating the amount of time a project requires and multiplying by the hourly rate.
Experience level is the most important factor in determining the best hourly rate to charge. New consultants usually charge a lower amount, while experts charge many more times the average rate for their industry.
Knowing how much to charge for your work is a complicated area. We want to help freelancers, so we’re going to give you some general tips here about settling on the best amount to charge clients for your services.
Let’s think about this from a few different perspectives:
First, how much do you want/need to earn? You should create your rates to reflect what you need to earn. Keep in mind that you won’t get paid for some of the things you must do, such as preparing your taxes, looking for more customers, and weekly admin work. So, your hourly or project rate needs to be a little higher to make up for the unpaid work that is part of every freelancer’s life.
Second, how much do others charge for similar services at your level of expertise and experience? This question can be a little difficult to answer, but you can just ask. Join a Facebook group and ask. Call a local competitor and ask. Once you know what they charge, you can go under that if you’re new to the market or over it if you’re the boss.
Another massive item you should plan for is taxes. You’ll be paying your own taxes as a freelancer, so your rates should incorporate the taxes you’ll eventually have to pay. The average tax amount paid by Americans, for all taxes, is about 29%. This means you’ll end up paying $3 in taxes out of every $10 you earn. Price your work to pay your taxes and be left with the income you want.
Your best rates will be different, because everyone’s market is different. What works in restaurant consulting will be different in tax consulting. Try a few different price points until you find the rate clients accept and you can live on.
This part is simple! Here’s a step-by-step guide to getting your invoice done:
Once you’ve finished these six steps, you are ready to send your invoice to your client. Save it in your Indy workspace or download it as a PDF. Then, email it to your client so they can pay you.
Indy offers an all-in-one platform for freelancers to manage all their admin work. When you sign up with Indy, your invoicing gets better because the other tools work together. For example, you can use Indy’s Time Tracker to note the time spent on a project. When you’re ready, the Invoice tool can automatically pull your unbilled hours for the project onto your invoice to make it ready to use. This makes your billing more accurate and saves time as well. When you set up your customers and projects with Indy, your entire workflow becomes smoother.
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