Top 5 Invoicing Best Practices For Consultants and Contractors

Invoicing appears to be an essential part when working as a consultant or contractor. Automate your business and reduce payment calculations by going paperless and making the use of online invoice software for Consultants and Contractors. Instead of manual conversion opt for web invoicing to make your accounts access from anywhere at any time and all the records to be backed up and stored online.

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Billing and payments for consultants and contractors is purely dependent on the nature of the contract that one has with the client. The contract agreement can be milestone based or periodical. One has to send out invoices on the basis of the details mentioned in the contract.

Additional expenses are either included in the pricing of the service provided or as an additional charge as per actual. This too, is dependent on the kind of agreement one has signed.

Here are some tips and best practices for Contractors and Consultants:

1) Ask For Advance Payments

As a consultant you always want to get timely payments for the services delivered. Besides that, chasing for payments after the services have been delivered, can be very painful. Having a policy of advance payments is useful and one feels financially more secure and are able to deliver better services in such a scenario.

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2) Keep The Billing Cycles Shorter

It is important to keep the billing cycles shorter for receiving payments on-time. For example, weekly or monthly billing cycles, should be preferred over quarterly ones.  This helps in faster completion of payment cycles and keeps the payments flowing. Similarly, even while billing for milestones, one has to insist on shorter milestones, to get faster payments for the services delivered.

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3) Sending Invoices on Time

Whether you are billing for milestones or monthly, you must ensure that the invoice is sent on the very date, that it is supposed to be sent with time and billing software for consultants. This ensures that the client does not pay up late, while giving an excuse, that the invoice was not sent on time. Using an online invoice software for consultants helps in sending invoices quickly and cost effectively. This also helps you focus more on your consulting business.

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4) Early Payment Discounts

Many consultants and independent contractors, provide early payment discounts for getting paid quicker. This helps in incentivizing the clients for faster payments. Some consultants also penalize clients for paying late. Online invoice software for consultants provide features like late fee and interest payments for getting clients to pay extra for paying late.

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5) Time and billing online invoice software for Consultants

Using online invoice software for consultants is helpful in getting paid for the hours worked, more accurately. An integrated solution helps in easily converting timesheets into invoices. A single solution where hours can be logged and invoices sent, helps in improving efficiency of the invoicing process.

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6) Go Paperless

Sending invoices online, is the norm for consultants and independent contractors in today’s time. Online invoice software for consultants helps in sending out timely invoices in a cost effective manner. An appropriate billing software for contractors help in easily managing and tracking a large number of invoices. Sending out professional invoices is easier while creating and sending them online. The process is far more efficient and reduces invoicing errors, many times over.

AS SHOWN ABOVE:

As a consultant or a contractor, it is important to focus on the core services like online invoicing offering on a continuous basis. But, at the same time, one must also take invoicing clients and receiving on time payments equally seriously.  The billing software for consultants helps you get paid on time.

WHY I’M LOOKING FORWARD TO INVOICERA ?

Choosing an appropriate consultant online invoicing solution like Invoicera is helpful in getting a host of interesting features and sending out invoices in a timely manner. The right solutions identifies your individual business needs and supplier requirements. 

Invoicera provides the better picture on how cash is flowing through the business and make better business decisions. By getting the best invoice processing practices, you can have the better insight across the business.

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Veronika Tondon is a business enthusiast. She writes about emerging technologies and opportunities for business. She is working as a Marketing Manager with Invoicera, a leading cloud-based invoicing solution.

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