Why contract labor workers should send professional invoices
You bring experience, skill, and knowledge to every labor contract you work on. You need clear, organized invoices that include the details of all the great work you have provided, as well as show your clients you are reliable, pay attention to details, and are committed to getting the job done.
If you want your customers to hire you on contract again, an orderly, well-designed invoice will instill confidence and credibility in your reputation and excellent work.
Once you've downloaded your free invoice template, you'll need to customize it to fit your specific business. Here are the 10 key things to include on your invoice:
- Title and Description: Name the project and briefly describe what type of work your client is being invoiced for.
- Company Details: Add your company name, address, phone number, and logo to the top-right corner.
- Customer Details: Under "Bill To", add your customer's name, address, and contact information.
- Invoice Number: Include a unique invoice number to help you track down this invoice in the future. You can format this based on sequence and customer. For example, if you're sending your very first customer their first invoice, the invoice number could be 001-001.
- Dates: Include the date when your invoice has been issued and the date when payment is due.
- Line Item: Add individual line items for each unique good or service you provided. For each line item, include a brief description, quantity, individual unit price, and total price.
- Subtotal: Add up the subtotal of your goods or services, before tax has been applied.
- Tax: Indicate the tax rate applied to the subtotal. This is legally required to provide on invoices, and your rate may differ depending on where you run your business.
- Total: Outline the total amount due from the customer, after tax.
- Notes: Include any additional info your customer should know, including terms of service and payment terms (for example, payments are due 30 days after the invoice has been issued).
- Look through our vast selection of invoice templates in different designs and colors created especially for contract labor work
- Pick the invoice template you like best in the format you usually use – such as Word, Excel, PDF, Google Docs, or Google Sheets
- Download the invoice template. It’s fast, it’s easy, and it’s free!
- Add your name, address, phone number, email address, and if appropriate, your area of labor expertise
- Insert your business or personal logo, along with your website, and any special qualifications or certifications you have
- Add in your customer’s name and the correct contact information
- Generate a unique invoice number and add it to the template
- Include the date of the invoice, the contract labor start and finish dates, and the payment due date
- List the contract labor work you’ve done, including the price you charge based on an hourly, daily, or flat fee
- Add lines to include any extra charges you incurred while on contract, such as travel, or material and supplies
- If you are including a discount for a customer who hires your labor services on a regular basis, make sure to add a line explaining the discount so the customer knows they are getting a great price for your reliable contract labor services
- Calculate the price, including applicable tax, and enter the total
- Include your payment terms, such as the methods of payment you accept
- It’s always a good business practice to add a personal note at the end, such as a thank you for the labor contract opportunity, or to tell your client how much you enjoyed working with them. It may lead to another contract, or a referral!
- Save a copy – and send it off!
When is the right time to send an invoice to your contract labor clients?
If you’ve been hired on a very short-term contact, many contract labor workers invoice at the end of the contract.
But you need to keep the revenue coming in while you are working on longer contracts, so you might ask for a percentage of the payment up front, with the remainder upon completion of the contract, or send in bi-weekly or monthly invoices.
Whatever payment cadence you choose, make sure it’s clearly noted on each invoice, and clarify what portion of the final ‘cost’ has been paid to date.
Invoicing tips for contract labor workers
Include professional recommendations
As a contract labor worker, you bring a unique perspective to each job. You also may provide a specialty labor service. Use your experience and knowledge to include a few recommendations for any future services you think would be helpful for your customers. It reinforces your valuable expertise, and it lets your customers know you are thinking about their best interests. It could also encourage another great contract labor assignment!
Include a ‘payment due’ date
Always clearly indicate when you expect payment – it actually does work! You work hard on each labor contract – make sure you receive your payment in a timely manner.
Follow-up on late payments
If a payment is late, follow up immediately. Be friendly and polite and your customer will appreciate the reminder. You have provided valuable contract labor and you deserve to be paid for your hard work.
Keep a record with numbered invoices
Numbered invoices help you keep track of how much money is coming in, which is important for your finances. It also shows your customers you have a professional, organized system in place. Consider also adding a job code if this is a recurring customer, or if you will be sending in many invoices over the course of a labor contract.