What Items are on a Time Invoice?
All invoices share some common features, including:
-An invoice number
Your time 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 perform (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.
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 check, bank draft, debit card, or credit card.
Terms of Payment
This includes the date by which payment must be made.
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 Time Invoice?
Your time 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 multiple 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 Time Invoice?
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.