A project management invoice is charged by a project manager to a company. Typically, that company will be in the construction, IT, financial services, law, or healthcare industry, but project managers work across multiple sectors.
The exact services provided will differ from job to job, but a typical project management invoice may include the following:
The main goal of a project management invoice is to provide the client with a detailed list of the work and the resulting costs. It is a clean and concise way of saying, “This is what we did, and this is how much it cost”, and it ensures that confusion is kept to a minimum and payments are made in full and on time.
For further simplification, a project management invoice should be connected to a bank account or a payment service, ensuring that payments are made instantly and in full.
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.
Most freelancers work 36 hours per week and charge $21 per hour according to a survey by Payoneer. Experience level is the most important factor in determining the best hourly rate to charge. New freelancers usually charge a lower amount, while experienced experts charge two to three 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 on the East Coast might not be successful in Nevada. 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.
Explore our blog for more info on closing deals.