Who Should Use an Hourly Invoice Template?

Any freelancer, contract employee, or small business owner who charges clients based on an hourly rate can use an hourly invoice template. Be sure to send professional invoices that will help you and your client track and calculate the total amount of hours spent on a job – ensuring that you will get paid the right amount. 

Remember to clearly state the exact tasks you accomplished and how long each task took to complete. 

Some examples of those who could use an hourly invoice template include: 

• Writers
• Graphic designers
• Virtual assistants 
• Business Owners
• Contractors 
• Photographers 
• Moving companies 
• Cleaners 
• Consultants 

What Items are on a Hourly Invoice?

A professional invoice will include features that are common among most invoices, as well as some custom features that will only apply in certain situations. 

Common features:

All invoices share some common features, including: 

• Company name
• Contact info
• An invoice number
• Client name

Custom Features:

Your hourly invoice also requires a few custom features. These include:

Type of service rendered

If you’re a virtual assistant, your invoice should reflect the task you performed (i.e. creating a database of constituents for a political client). If you also performed other tasks, they should be itemized and added to the invoice in the same manner.

Hourly rate 

The amount you charge by the hour for that type of task, and how many hours you spend on the task, followed by the total charge for that specific task. Subtotal your charges for each task.

Forms of accepted payment

Payment methods might include checks, bank drafts, debit cards, or credit cards.

Terms of payment

This includes the date by which payment must be made. Learn more about invoice payment terms here.

Taxes

Add any applicable goods and services tax and harmonized sales tax (GST/HST) before you compute the grand total. You can opt to not reflect taxes on your invoice and instead incorporate them into your fees, but be sure to set aside about 25% of your earnings to be prepared when tax season hits. And, depending on your province, you may also have provincial taxes due.

What Type of Charges Should Be Reflected on Your Invoice Template for Hours Worked? 

Your hourly invoice is a little different than the usual “products sold” type of invoice because of how you itemize your charges. Consultants who charge per-project fees are able to modify a generalized invoice – but for certain types of freelancers, this format doesn’t quite work. Here’s why:

• A writer can charge a per-blog fee or a bill per-word. If the writer is performing bulk work, sometimes they offer a discount. 
• A virtual assistant can charge different hourly fees depending on the nature of the requested task.

According to PayScale, the average hourly wage for a freelance writer is $27.50. To price your service correctly, estimate how long it takes you to complete a project, then multiply the hours by the average hourly pay for that service, and set a flat fee accordingly. You may or may not have to pay taxes on your earnings come year-end, so adding a small amount for tax into your flat fee should be considered.

How Should You Send Your Invoice for Hourly Work?

Many people who work from home today send invoices digitally – writers and VAs find their clients online, perform the tasks requested, and when it’s time to ask for payment, they send an invoice online. While you may mail or hand-deliver your invoice if clients live nearby, it is perfectly acceptable to email your invoices or to use a software program like QuickBooks to prepare and send your invoices. If you need a simpler way to invoice your clients, try QuickBooks invoicing software.