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 comparatively less. In this case, the hourly rates can be set above the average rate so the shortfall in the revenue, due to the faster completion of the task can be met. On the other hand, if a market rate is predefined, then those who take the longer time to complete, would get paid more.

billing software

Now if a consultant deliberately takes more time to complete a project 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 the 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 a 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.

Refer to: How to Improve Project Productivity with a Time Tracking Tool?

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

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.  

As a consultant, one must use an appropriate time tracking software to bill clients using alternate methods. Interested: Try For Free

 

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Veronika Tondon is a business enthusiast with extensive experience in Invoicing & Payment Process. She has 6+ years of experience in Invoicera, the leading cloud-based invoicing solution as Invoicing Consultant. Sound knowledge in business process execution, offers end to end solutions for complete automation of business processes and AR/AP processes.
Contact Veronica for your invoicing requirement.

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