Contractor Invoice Template

What is a Contractor Invoice Template?

An invoice template for contractors is a pre-formatted document that’s specially designed to help anyone working as a contractor or subcontractor create professional invoices. It provides fields for all the important billing details – such as rates, hours worked, and payment terms – to make sure you get paid the right amount, at the right time. 

Here, you’ll find examples of invoices for contractors to help you create your own professional documents. These templates are suitable for a wide range of independent workers including:

• Tradespeople 
• Freelancers 
• Consultants
• Gig workers 
• Self-employed professionals 

How to Use Our Contractor Invoice Template

A well-structured invoice ensures you get paid accurately and on time. When using our contractor invoice example, make sure to include these key elements:

• Your business details: Remember to include your business name, ABN (if applicable), address, phone number, and email.
• Client information: You should also include the client’s name, business (if relevant), address, and contact information.
• Invoice number: For easier record keeping, assign each invoice a unique number.
• Date: It’s good practice to include an issue date and due date.
• Project description: Provide a concise summary of the work completed, including any relevant job details.
• Itemised costs: List labour hours and rates, materials, subcontractors (if applicable), and any additional expenses.
• GST: If registered for GST, include the 10% GST amount and your ABN. Clearly state if GST is not applicable.
• Payment terms: Specify payment methods (bank transfer, PayID, credit card, etc.) and any late payment fees.

By following these guidelines and using an invoice template for subcontractors, you can ensure your invoices are compliant with Australian business standards. 

Benefits of Using Specific Invoice Templates

Using a sample contractor invoice to create your own invoices makes it easier to keep your accounts in order. Here are the main benefits of using an invoice template:

• Save time: Using a ready-made template will help to minimise time spent on administrative accounting tasks. 
• Simplify your invoicing process: Templates ensure consistency while making it easier to track payments. 
• Get paid quicker: Clearing outlining payment terms, due dates, and accepted payment methods will encourage prompt payment from your clients. 
• Set a professional standard: A well-structured invoice enhances your credibility, making you look more professional and reliable to clients.

Whether you’re using a QuickBooks subcontractor invoice template or a ready-made template in Word, this practice will help to simplify your admin so you can put more focus on your work. 

Tips for Getting the Most Out of Your Template

Here are some tips for maximising the effectiveness of your invoicing system:

• Include photos showing progress: Attach images of completed work or project milestones to provide visual proof of progress and justify your charges.
• Keep timesheets for you and your team: You should always keep a record of hours worked, including start and finish times, to ensure accurate billing for labour costs.
• Receipts for materials or equipment: Save and attach receipts for any materials, tools, or rentals used in the project to provide transparency and support your invoiced costs.
• Send reminders for overdue payments: Send polite reminders before and after the due date to ensure clients don’t forget to pay.

Stay Compliant With Your Invoicing

Using the QuickBooks subcontractor invoice template for Word or Excel can also help you stay on top of your tax obligations. Ensuring your invoices meet Australian Tax Office (ATO) standards isn’t just about following the law – it also helps to make tax time easier and protect your business from potential fines.

The ATO has specific requirements for business record-keeping, including tax invoices. To stay compliant, your invoices should include essential details such as:

• Your business name
• A unique invoice number
• The date of the invoice
• Your Australian Business Number (ABN)
• A clear breakdown of the goods or services provided, along with their costs. 

If you’re registered for Goods and Services Tax (GST), your invoice must also include the GST amount and be labelled as a Tax Invoice if the total exceeds $82.50 (including GST).

When Should You Send Your Contractor Invoice?

The timing of your contractor invoice is crucial for maintaining cash flow. Ideally, you should issue your invoice immediately after completing a project to encourage timely payment.

For longer projects, consider invoicing in stages based on agreed milestones. This will help to ensure your payment expectations are aligned with your client, reducing surprises. Similarly, for ongoing client relationships, you could opt for regular invoicing intervals – such as weekly, bi-weekly, or monthly.

Efficient invoicing not only ensures timely payments but also streamlines your operations and reinforces your professional image. QuickBooks offers invoicing solutions to help you manage finances effectively, whether refining your process or starting fresh.

Simplify Invoicing as a Contractor

Explore QuickBooks' invoicing tools today for streamlined billing and improved cash flow.

Download our free invoice templates for contractors or sign up for a free trial of QuickBooks Online to see how our software can help. From keeping track of your finances to automating the invoicing process, QuickBooks makes accounting easy.