A Guide to Using Invoice Templates for Contract Work
Is paper invoicing a thing of the past? Recent data reveals that it costs at least $30 to process a paper invoice, compared to $3.5 when using an automated one with a template. Most businesses know that having an invoice is invaluable since payment for goods or services is requested through the delivery of an invoice to the customer or client. However, contract workers can also benefit from having it, as some customers may choose not to pay unless they see the numbers in black and white.
Since it’s an official document, you need to be careful when creating a template that you’ll use for all your contract work in the future. If done right, you’re more likely to get paid on time. According to a study, 42% of invoices are paid on time with automation, compared to the 25% when not automated and not using a template. If you’re thinking about making an invoice, here’s how you can use invocie templates for contract work.
The company information should be clear at the top of the page. You should include the name of the company, address, email address, contact numbers, and other important details that your customer or client might want to know. This is to help people contact you or your company when they have questions regarding the invoice. The word “Invoice” should also be clear in the top area, along with the invoice number
A unique invoice number must be assigned to each invoice, and you must keep a record of the numbers and references used in the invoices. A sequential numbering system is the simplest solution to handle this issue. Letters and digits might be included in the reference. Meanwhile, if you are just a freelancer and are not employed by any company, you can just put your name on this part. The important thing is that the person who will receive the invoice knows exactly where it is coming from so there won’t be any delays when it comes to paying you.
Adding a logo at either the upper leftmost or upper rightmost corner of the invoice also makes your invoice templates better. You can also use your company’s branding kit for colors, fonts, and other shapes. However, the overall look should still be professional. Most contract workers, especially new ones, don’t have a logo. That’s completely fine. You can create your own logo by using free sites such as Canva or hire a graphics artist to do it for you. Another option is simply to just skip this part altogether. Your invoice is still valid even without your logo.
While not necessary, adding customer info can also improve your template. On the off chance that the invoice is sent to the right person. Typically, you should include the name, company, and contact number of your customer on a section dedicated to their information. You can also add an email address, especially if it is the way you typically communicate with your customers.
Item or Service Description
Being as detailed as possible is important when you are writing the item or service description. These descriptions don’t have to be long, but they should contain enough information to let your customers know exactly what they’re getting for their money. Otherwise, customers are more likely to question the invoice and cause a delay in payment if they don’t know what they’re being charged for. The quantity and price of each item or service should be included after you’ve provided a detailed description.
NET30 is the most common payment term for invoices. It means that the client or customer shall pay within 30 days after the goods or services have been delivered. But while it’s the most common payment term or grace period for payments, you can decide how much time you require for people to pay depending on your industry.
However, there are some contract jobs that can be finished within the week. If this is the case, you can send an invoice that should be paid within 2 days. This is completely fine, as you should not wait too long before you get paid. You can also add a late payment fee if your customer fails to pay within the specified deadline. Just be sure to inform them beforehand.
Having a template that you’re going to use is important. It needs to look professional and yet has enough branding to make an impression on your customers or clients. Additionally, it needs to have enough information to serve its purpose.