Whether you are running a side hustle or a full-blown business, at some point you will need to create consulting invoices. Well, unless you do not care about being paid for your work. This is a process that is often overlooked. However, the way you invoice can help you get paid on time, impress a client, and even market your services to expand the business.
Consulting Invoices Are Not Redundant
I have come across some consultants that feel like an invoice is redundant. Whether they sent a status with time worked or had a consulting agreement, they seem to think nothing else is required. They may send a bill, but decide that the extra work of an invoice is not needed to get paid. This is possible in some cases but still misses the point. Every interaction with a client is a chance to impress them positively or negatively. That includes communications with the accounting or billing department. You are letting an opportunity slip by if you do not spend the time on a professional looking invoice.
Pacing and Surprises
It is also tempting to send an invoice only when you need the money or work is complete. Although that may be the agreement, it is not a recommended approach. A few smaller invoices will be more likely to get paid (at least partially) than a single, large invoice. They will often get paid faster as well. Just as you should be providing regular progress on a project to the customer, they should make the scheduled payments for your fees. That holds for a fixed-bid project as well.
Set a time frame with your customer that makes sense (weekly, monthly, quarterly, etc.) and invoice them on that schedule. You can bill a percentage of a fixed bid project or hours worked for a given time period. I know that accounting can be an annoying overhead. On the other hand, regular billing can help your receivables stay within a reasonable range and help you avoid the headaches around getting paid for work done long ago.
You put in the work and should be producing quality deliverables. With that in mind, there is no reason for a customer to avoid paying invoices on the schedule you agree upon. When that becomes a problem, the conversations and project quality can be less than you desire. As usual, the more you can get ahead of these things, the easier it is to avoid mistakes and arguments.
Learn more in the book written for Develpreneurs at any stage in their progress: https://www.amazon.com/Source-Code-Happiness-Finding-Success-ebook/dp/B07MKZBF6R
