Hour invoicing is a core billing method for freelancers. It means you charge clients for the exact hours you work on their project.
What is Hour invoicing?
Hour invoicing is a billing model where you charge a client based on the actual time spent working. You track your hours and multiply them by your agreed hourly rate. This is different from fixed-price or project-based billing.
Why is this important?
It's a fair way to get paid for all your work, especially on projects where the scope is unclear or changes often. It protects you from scope creep where extra unpaid work is requested. Understanding this model is key to managing your income.
How does it work?
First, you and the client agree on an hourly rate. You then use a time-tracking tool or manual log to record work hours. Finally, you create an invoice listing the hours worked, the rate, and the total amount due, usually on a weekly or monthly basis.
Pros and cons
The main pros are fairness for unpredictable work and payment for all effort. Key cons include potential client budget anxiety and the need for meticulous time tracking. It may also discourage efficiency if you're not careful.
Conclusion
Hour invoicing is a fundamental and flexible billing method for freelancers. It works best for projects with fluid requirements. Clear communication and accurate time tracking are essential for it to succeed for both you and your client.
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