Be it a small or large business, invoicing is a key aspect that you will need to fulfill. Contractor accounting software will help you plan your projects better and deal better with service providers.
Not using a free invoice generator app can lead to delayed payments. Creating accurate invoices will help you streamline accounting operations. Thus, as a contractor, you must be well-versed with the process to ensure you have smooth business transactions.
The best free contractor accounting software will let you create a professional contractor invoice in just a few clicks.
Steps to Create a Professional Contractor Invoice
Working on different projects will involve different billing terms and timelines. The best free contractor accounting software lets you create invoices that include all information. Ideally speaking, the contractor should mention the services provided, business details, milestones achieved, and contact information of both parties. If you follow these pointers when creating an invoice using online invoicing software, you will always get the best invoices.
1. Label Invoices
Yes, invoices are important documents. But, they need to be labeled clearly and mentioned in bold. Make sure they have a font bigger than the rest of the details. This will make it clear for the clients to segregate information and pay you faster. Using your online invoicing software to its full capacity will help you manage all operations smoothly.
2. Include All Information
Missing out on business details on an invoice makes no sense. Make it a point to add a company logo when making your invoices using contractor accounting software. Adding all these details in your online invoicing software will help your clients communicate clearly with you.
3. Add Client’s Contact Details
Irrespective of the size, you will need to add the contact details of both parties. Some companies have separate billing departments, and you will need to have a one-on-one with them. Thus, make sure you mention all this in your free invoice generator app.
4. Assign Invoice Number
Every invoice is unique and should have a number to it. Doing so will help you track each transaction with ease. Also, if you assign it sequentially, you can easily maintain the order of the invoices. The best part is you don’t need to do it manually, your online invoicing software will do it for you!
5. List Out Your Services
The best way to list out your services, especially when comparing platforms like “angi vs thumbtack“, is to create a table and add a short description for the same. You should also add the number of hours worked, your pay rate, and the total amount in your free invoice generator app.
6. Mention Payment Terms and Preferred Payment Gateway
Invoicing is a means to make your payment process faster. Thus, it would help if you made it a point to state your payment terms with utmost clarity and mention your chosen payment method. Also, make sure to outline the payment policy and mention the consequences of paying late.
7. Add Invoice and Due Date
This is one step most people miss out on. They forget to mention payment deadlines clearly and add the date on which the invoice was sent. A thing to remember here is that it should be easy to read so that there is no scope of confusion.
8. Mention The Total Amount
While you have mentioned all your services and your clients are smart enough to do the total, you must add the total amount for clarity. It will make the client’s life easier, and they will make your payments faster. Also, it goes without saying, keep the fonts big and bold.
Types of Contractor Invoices
There are two categories of invoices, namely fixed price contract invoices and cost-type contract invoices. With the former, you will need to submit invoices according to the payment clause set in your agreements. Here are the two formats of invoices used by contractors.
1. Basic Invoices
An invoice needs to have some basic details to be considered complete. These include
- Complete details of the contractor
- Invoice number and the due date
- Contract number and order numbers
- Itemized list of your products and services
- Shipping details and terms of payment
- The name and address of the contractor’s official to whom payment is to be sent.
- Taxpayer identification number (if required)
- Banking details
Note: Make sure you use the correct name, address and check the agreement details.
2. Performance-based Payment Invoices
On a performance-based contract, the invoices usually include the following information:
- The contractor’s complete details
- The date of invoice issue
- The contract number or any proof under which request is made
These were some of the parameters you need to consider before making a contractor invoice using your online invoicing software. A free invoice generator app works just as well. If you follow all these steps, you will never have issues with your contractor invoices. If you are still looking for the best free contractor accounting software, we guarantee that we can help you find one!