Are you an Independent Contractor, IT consulting service provider, Management Consultant, Marketing Consultant, or providing any consulting services? Submit Consulting Invoice to request payment for your services. Kindly download the template for your use. Apart from letting you download the Consulting Invoice Template, we have explained all necessary inputs required by.
How to bill for consulting services
How to bill for consulting services depends on the agreement. However, follow these tips to charge your customer efficiently for your services.
Advance Payment: This option provides you with some confirmation from the client about their seriousness in the job. You may ask them to pay a minimum of 25% fees as advance.
Frequent Billing: When you offer a consulting service, make sure you bill them frequently. Do not wait until the end to bill your customer.
Raise Invoice immediately: Raise invoice based on stages of completion of projects. Upon delivery of services as agreed in the contract, raise your bill.
Email Communication: Even though you prefer sending your bills as a hardcopy, have the practice to record a conversation in email. This will help to track your bill details handy.
Discount Offers: If your customer is new to your consulting services, give them some discount. This will motivate them for prompt payment. Also, offer a discount for old clients who make payment on time. These discounts will encourage your customer to release your payment immediately.
Track the payments: Make sure you have a system to track the payment cycle. Either use some software or even an Excel will suffice to follow the status of payment. Tracking will enable you to remind them for payment.
Typical payment terms for consultants
Every consultant, independent contractors, and freelancers provide their consulting services for money. Preparing a clear Invoice with Payment terms in the agreement put together makes it easy. Principal payment terms used by consultants are listed below
Correctly mention the invoicing date on the contract and consistently stick to the same.
The time for releasing the payment after raising the invoice due date. Use the term “Trade Credit.” Payment is due within 30 -90 days from the date of raising an invoice. Avoid using Net30 as it is very vague.
Delayed payment clause. Include a penalty for a maximum of 5 days delayed payment. Incorporate an interest for payment beyond 30 days.
Differentiate dispute charges and non-disputed charges. Sometimes invoice might have some disputes. Make it clear in your agreement to release the non-disputed charges. In parallel customer can clarify the differences in the invoice and make payment separately.
How to charge? Consulting hours Vs Consulting fees package
When you are new to consulting business, it is important to know how to bill your customer. Let us give you an idea about the pricing method by the hour, or as a package.
Initially, all consultants prefer an hourly rate or daily rate. It is good to understand the market and customers. Over a period prepare a fee package of different services you offer. Consultants in IT and social media charges by the hour as the nature of work are dynamic.
Eventually, start charging on a project-based rate. Once you are clear about the details of the project and you are confident about your delivery. Web design and Marketing consultants charge by the project. When there is a delay in the project at the customer end, it will become difficult to calculate the rates.
Alternatively, you can follow professionals including Lawyers and Chartered Accountants. They calculate the hourly rate and ask the client pay advance based on the number of hours calculated.
Go for an hourly payment until you know the customer. Nice to have a package fee for long term association.
Components of basic consulting invoice template
- The IT consultant or the IT consulting service provider details. Company Name or Name of the Individual. Contact information including Office address, Phone, Email, Fax and Website address.
- Mention Date and Invoice Number.
- Customer details like their Name, Phone Number, and Email Id
- Particulars of the services provided. For instance, Software developed, Hardware installed,
- The cost details Make a table based on the services delivered. Include tax details. Sum and provide the total amount
- Mode of payment: Online transfer, Cheque payment, Paypal, Provide the necessary account details.
- Payment terms along with the payment dates, due date, late payment penalty,
- Thank you for the services offered.
- Append your Signature with Seal of the organization.
Things to note for – IT consulting services invoice
IT consultant invoice template makes use of different sections for hourly charges and other fees like materials or installation fees.
IT consulting services include Training cost, travel, stay, and daily consultant disbursement fees.
IP assets are required and hence include intellectual property usage cost. Software license fee.
Independent contractor invoice
Independent contractors are people providing work as an individual. Content Writers, Translators, Web developers, Photography, and others provide service independently. They don’t work for any company.
Independent contractors often named as freelancers raise invoice with the standard service invoice. Calculate the total payment by multiplying cost/hour and the total number of hours worked. Some jobs may require a calculation based on factors like some words written in writing or a translation job. Hence the calculation is changed to cost per word multiplied by the total number of words written to make an important document. Photographer charges on per photo cost for some photos taken. Modify the invoice template in the details section and use per your need.
Hourly consulting invoice – Points to remember
When you prepare a bill for your consulting services based on hourly rates, do n’t forget to find out and regularly check you’re pricing by remembering the following points.
Understand your worth in the market. Settling on what and how to charge customers is a critical assessment considering various factors including the market standards, cost of business, and your worth.
Step 1: Remember to ask yourself the following questions.
- What is Market rate in your location and industry?
- How much experience you have?
- What is your skill rating?
- How often you meet deadlines?
- How much dependable?
Step 2: Hourly rate calculation
If you have recently moved from full-time employment to freelancing job, then divide your previous package by 52 (number of working weeks in a year); and divide the result by 40 (total work hours in a week). Now mark the answer up 25-30%.
The markup will cover your market value and skills.
Also remember to include costs such as administration, selling, and networking.
Finally, add your tax and insurance costs.
While the basic sections /components of any invoice remain the same for a consulting service, let us highlight the key features of the following invoices. Feel free to download the corresponding templates for your services.
Management consulting invoice
Document the bill of sale details in a management consulting invoice template. Company or an Individual offering management consulting services can make use of this model. This invoice is a merely a business transaction.
We have provided space for you to include the type services provided payment details per unit or hour basis, tax details, and misc expenses.
Marketing consulting invoice
Marketing Consultant works as an individual consultant or as part of a company. Marketing consultants carry out industry research, market research, demographics, latest trends, estimates profits, and other information required by the customer for their products or services.
Marketing consulting invoice consists of marketing strategies price, advertisement cost, and other product promotion charges.
Personal consulting invoice
Personal consulting services include professional services in education, finance, law, human resources, engineering, science and a lot of other dedicated fields.
Personal consultant invoice will have all the conventional components. Additionally, the details section will include the cost of providing the services like counseling, legal advice, material cost if any, recruitment cost, etc.
Consultants from companies or entrepreneurs can download personal consulting invoice from this section. If you are providing services in any of the fields mentioned above, then you are at the right place to download the template. Personalize based on your need.
Software consulting invoice
First, let me tell you the difference between IT consulting and Software consulting. Providing services on the software and applications layer is termed as Software consulting. On the other hand, IT consulting service provider offers assistance to customers on all IT strategy from scratch.
Software consulting invoice template given in this section is a readymade format used for delineation of the bills for providing software linked consulting services
Software consulting invoice contains the charges for services rendered by the business analysts, software consultants for their design, development, and implementation of the software solutions.
Optimize Software consulting invoice based on the firm’s output, operational effectiveness, and productivity.
Now you know about the different Consulting Services. Select the right template from here and customize the same. We have also mentioned regarding the charges in various consulting services. Thus made your job simple. Incorporate in your invoice and use it. Please use our service for the best of your need.