Time Billing vs Project Billing for Consultants

There is always a dilemma for consultants to bill for time or project. Sometimes it becomes extremely difficult for a consultant to bill for the hours worked on a project. As a consultant one may be really quick at completing the project. This may fetch him lesser money because the hours billed for would be be comparatively less. In this case the hourly rates can be set above the average rate so the shortfall in the revenue, due to faster completion of the task can be met. On the other hand if a market rate is predefined, then those who take longer time to complete, would get paid more.

Now if a consultant deliberately takes more time to complete a project then then his efficiency would be questioned.

Billing for projects in this case, helps a lot because if the consultant is more efficient,  the price for the service delivered will be more. Giving an accurate estimate of the time to complete the project is important in this case.

While billing for time, it is the responsibility of the consultant to ensure that delays are not charged for. On the other hand, while billing for a project, the consultant must ensure the project is delivered on the specified date.

Sometimes billing for time also becomes challenging when one has to track the time spent on meetings and briefs. Many a times consultants also prefer to bill clients on a monthly retainer. This becomes a part of an yearly contract that the client signs with the consultants.

A goal is defined for the consultant to achieve periodically and he can send out recurring invoices for his services.

Tracking the time spent on the work done for clients stays relevant in all the models. In a project or a monthly billing model too, tracking time ensures the consultant can calculate his time’s worth (hourly rate) by the end of the billing or the project period.

time tracking software

As a consultant, one must use an appropriate time tracking and billing software to bill clients using alternate methods. Invoicera provides all the necessary features for sending out accurate bills to clients. The solution helps in directly converting timesheets into invoices. It also helps in sending out project bills, while also add project work reports.  Recurring invoicing with Invoicera is very simple as well.  One can add late fee and automatic payment reminders to the recurring profiles and ensure timely payments.  

 

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