5 Best Invoicing Practices For Consultants and Contractors in 2021

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 consultant billing software and contractor invoice software. 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.

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.

 

2) Keep The Billing Cycles Shorter

It is important to keep the billing cycles shorter for receive payments online 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. Read more...