If you are planning to offer consulting services, you have to set appropriate consulting fee, either you want to receive hourly rate, or a flat fee. How you bill your clients will be based on the consulting work and your contract that you have made with clients. Usually, billing terms are included in the consulting contract, but in the absence of written contract, you have to set an appropriate fee with mutual agreement. Usually, clients find it uneasy to pay for the longer project, but you can bill hourly to facilitate your client and can receive your fee on a regular basis. If you are working on a longer project, it will be good to submit a draft report to the client after the completion of one-quarter of the project and then invoice the client after the completion of each milestone.
Tips to Design Consultant Invoice
Consultant invoice makes it easy to collect the payment, and following are some tips to write a perfect consultant invoice for your consulting services:
Front-load Your Billing
If you are designing your invoice after the completion of your milestone, it will be good to write your fee on the front of the invoice instead of writing at the end. You can write your first payment higher than others to minimize the risk of late payment from client.
Bill Your Clients Often
If you are working on a huge project, it will be good to bill your client after short intervals to maintain your own cash flow and to make it easy for your clients to pay in parts. You can bill weekly, monthly or quarterly according to the convenience of your client.
After completing the milestone, do not wait for the long times and bill your client immediately. It will be good to send a consultant invoice to get your payment on early basis. It is best practice for your better financial health.
Use email whenever possible
You can send consultant invoice via email to save the additional expenses of stationary. It will save your time also, and encourage your client to make the payment on early basis. Your invoice should contain complete details for the convenience.
Offer Discount on Instant Payments
If you want to motivate your clients to pay early, it will be good to offer them small discounts ranging from 0.5 percent to 1 percent for paying your bills within 10 to 20 days. It will put a positive impact on your cash flow for the financial health of your business.
Monitor the Payments of Clients Closely
Closely monitor the status of your invoices and keep sending reminders to your clients to make payment on right time. Introduce easy payment procedures for the convenience of your clients and to collect your payments easily.
Common Mistakes in Consultant Invoice
Do not forget to include the serial number on the top right corner of your invoice to maintain proper invoice records that will help you at the time of the audit and to maintain financial statements.
Carefully include complete information on the invoice, including the name of the client, contact details, name of your business and important terms and conditions for the payment.
Here is preview of a Free Sample Consultant Invoice Template created using MS Word,
Here is download link for this Consultant Invoice Template,