An hour invoice is a fundamental billing document for freelancers. It details the time you've spent on a client's project and calculates the total fee based on your hourly rate.
What is Hour invoice?
An hour invoice is a bill you send to a client that charges for your work based on time. It lists the hours you worked, your hourly rate, and the total amount due. This is different from a fixed-price or project-based invoice.
Why is this important?
It's crucial for transparent and fair billing. It provides a clear record of your work for the client and protects you by documenting exactly what you did. This helps prevent disputes over payment and scope.
How does it work?
You track your time using a tool or simple log. At the billing period's end, you create an invoice listing each task, date, hours worked, and your rate. You then sum the totals and send the invoice to your client for payment.
Pros and cons
Pros include fair pay for all work and simplicity for open-ended tasks. Cons can involve client skepticism about hours and the need for meticulous time tracking to ensure accuracy and trust.
Conclusion
Mastering the hour invoice is essential for freelancers who bill by time. It ensures you get paid accurately for your effort and maintains a professional, transparent relationship with your clients. Always pair it with clear time tracking.
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