Invoicing is a mandatory action taken by contractors to lead their occupation. As a contractor, you are involved into multiple projects at one time and all project has various billing terms and conditions. It becomes necessary to keep a track of their time involved in finishing the project. Contractors need to send invoices to the clients based on policies and time duration. Thus, having a proper format of Professional contractor invoices is important.

Types of Contractor Invoices

Based on contract deals between the contractor and the client’s here are two types of general Contractor Invoice:

  1. Basic/Fixed-based Invoices 
  2. Performance-based Invoices

Fixed Invoices

The fixed-based invoices are based on payment clauses mentioned in the contract. The contractors release the invoice after the completion of the project. This type of contract includes some basic features as given below:

  • Contractor’s Name
  • Full Address
  • Invoice date and Invoice number
  • Contract Number
  • Service Description
  • Shipping and payment terms
  • Taxpayer Identification Number (If required)

Performance-based Invoices

The performance-based contract invoices include part by part billing. This invoice is created after every task is finished by the contractor’s end. The format of the performance-based invoice is mentioned below:

  • Contractor’s Name
  • Full Address
  • Invoice date and Invoice number
  • Contract Number
  • Task Description
  • Shipping and payment terms
  • Taxpayer Identification Number (If required)

Key Points to Create Contractor Invoice

Creating a detailed invoice can play a major role including payment deadlines, service details, and total balance owing to get safe from being cheated or facing loss. So, let’s discuss the salient features of contractor invoice:

♦ Establish the Document as an Invoice

Yes, it’s evident from the numerics in the document that it is an invoice. However, mentioning ‘invoice’ in the header with bold letters will make it crystal clear to your client what they have received. 

♦ Add Your Business Details

Now, again in the header mention the correct business contact details that include name, address, phone number, and email address. Also, include the logo of your business name.

♦ Add Client Information

After including your contact details you need to add your client’s details below the header. Make sure to cross-check with each of your clients regarding the contact person of the particular invoice. Generally, in MNC’s there is a committed account department that handles payment-related queries.

♦ Set Unique Invoice Number

Every invoice has its unique invoice number. Thus, you should also give specific invoice numbers to each of your clients. In the future, if there is any miscommunication or any issue in terms of billing then this helps in the quick identification of payment information. The best practice to create the number is to create serial number-wise like #003, #004.

♦ Mention Invoice Date

Don’t forget to mention the invoice date. This is the date on which you will send the invoice to your client. Keep in mind to put the correct date. 

♦ Prepare the Service Details

The details of the service need to be briefly mentioned. Draw four columns which include: description of service provided, quantity or no. of hours worked, payment list, and aggregate payable amount.

♦ Include Term and Conditions

Mention your payment terms and also include the payment mode which you accept. Declare the late fee policy.

♦ List the Total Amount Due

Make a separate section of the total amount owing from the client. The font should be large and bold in size. This avoids the mistake or confusion in regards to the payable amount.

♦ Give the Payment Deadline

Mention the deadline of your payment in a bold and easy-to-read font. The date should be very specific so that there is no misunderstanding like ‘Payment Due October 21, 2020, instead of mentioning Payment Due in 30 days. This will lead to a delay in payment.

Common Mistakes of Contractor Invoicing

Contractors will receive an on-time payment if they avoid the silly mistakes given below:

♦ Carelessness in Tracking Time Hours

It’s important to have an accurate working hours list saved for each project as your payment depends on it. Choose any suitable option i.e. either have a note manually daily on a notebook mentioning the date, start time of your project, name of the project, and end time. And, if you are well-versed with technology then opt for the cloud-based accounting solution.

♦ Failing to Share the Invoice Immediately 

If you will show an irresponsible attitude by sending the invoice late, the client will also treat you casually. Thus, you need to share the invoice immediately just after your project is completed. Also, some contractor invoices are according to the hour’s completion then you need to share the invoice just after your hours are finished.

♦ No consistent format

Being a contractor, you will have various projects for different clients. This will make you build invoices daily for your variant clients. Now, every time creating the invoice with a changed format will lose the credibility of your brand and will consume extra time. Create an invoice template for your type of contract. Thereafter, you will simply have to select the template on contract-based and fill in details. This will maintain the brand value and save your time.


♦ Overlooking Payment Terms

All the invoices should outline the payment policy. There are times when contractors have forgotten to mention their payment terms and conditions, and the client pays the bill from a different payment mode and it gets declined. This will rise in delay in payment. Thus, it is better to create payment terms and policy columns in the invoice for a smooth process. Additionally, if possible read out the contractual terms before getting the papers signed by the clients.

♦ No Follow-up on Due Payment

At times, contractors fail to follow up regarding the client’s late or due fee as it sounds rude or irritating. However, if you want to receive early payment, you should take follow up as soon as possible. Just drop a courteous message highlighting the overdue payment fulfilment. This way you look professional and will be more likely to get paid quickly.

Contractor Invoice Software– The All-in-One Solution for Contractors

If you are looking for a contractor invoice template, Invoicera, a contractor invoice software, has multiple template designs. Invoicera is the world’s best online invoicing and billing software platform that has auto-billing, real-time tracking, and expenditure management features. Here are the features of the software:

♦ Invoice Template Customization

This feature helps in creating the invoice with all the customization details of your contractual policy and requirement.

♦ Time Tracking

 It will track the time and notify you of the payment date. Then, it will also give the details of your working hours on the particular project.

♦ Project Management

Your all project details will be managed and saved over the cloud. This will help you to check your all project information. Being a contractor there are multiple projects to perform and at times being a human there are chances of forgetting the details.


♦ Multi-Currency & Multi-lingual

The software has features of dealing with multi-currency and multilingual clients. If you have international clients or clients from a different state and you are facing trouble in connecting or dealing with their currencies, Invoicera software eases your burden by handling it.

♦ Staff Management

Various industries deal on a contractual basis, even organizations. Thus, they have much staff under the contract, and maintaining the staff details manually becomes tedious. However, this software has a feature of staff management in which you can add proper details.

♦ Subscription Billing

To make your billing task more simple you can choose subscription billing monthly. It will automatically generate the bill of a particular client with accurate calculations and details.

♦ Client Management

You will be able to manage your client information and will be saved with full security. If you forget the details of your client, you can check it from this section.

♦ Online Invoicing

With this software, all your invoicing will be online. Thus there will be no human error, will be time-efficient, transparency between the contractor and client.

♦ Task Management

This feature will help in managing the task you and your staff are performing. All the list of tasks performed will be saved and you can easily cross-check the pending and upcoming tasks.

♦ Online Payment

With online payment, it is easy-go access payment from anywhere across the globe. Thus, invoicers have an online payment option so that you can receive the payment from any place. 

♦ Multi-Business

It includes the multi-business feature which handles multiple businesses of a single client on one single platform.

Final Thoughts

In this digital world, there is a fast pace of growth in the industry. Variant types of businesses that are running are contractual, full-time, part-time work. Thus, there is an increasing number of clients and projects and it’s difficult to manage manually. 

Therefore, having an online invoicing software, or another invoice is becoming important in today’s time. Therefore, if you are also holding business try to approach Invoicera software for your billing and management features.