Contractor Hourly Rate Invoice Template

What Is an Hourly Contractor Invoice Template?

If you're an independent contractor, you will need to keep track of your hours worked to charge your clients and pay your taxes. This is where an hourly contractor invoice template can bring invaluable order to your finances. As an essential accounting tool specifically designed for freelancers, consultants, or any independent contractors, it itemizes information regarding the hours worked and the agreed rate.

Why use an invoice template for contractor hours?

The invoice template for contractor hours simplifies the billing process and ensures transparency. By recording your hourly services and summing up the total pay due, you create a clear invoice that clients can easily understand. This not only helps you get the right compensation but also promotes trust and transparency between you and your clients. 

How to Fill Out Contractor Hourly Invoice Template

Filling out an invoice might seem complex at first, but once you know where each piece of information goes, it's quite a straightforward task. 

1. Input Your Company's Information: On the PDFLiner website, start by entering your company's details into the designated fields. These will include the company name, street address, city, state, zip code, email, and phone number.
2. Provide Invoice and Customer Details: Next, fill in the invoice number and date on their respective fields at the top. In the client section, input the customer's name, street address, city, state, and zip code.
3. Detail Products and Materials: The products or materials section is where you detail everything you supplied for the project. Enter a description of each product or material, the quantity, price per unit, and the total amount for each line.
4. Labor Section: The labor section is next. Here, write a description of the services rendered. List the number of hours it took to complete and the price per hour. The form will automatically calculate the total amount based on these inputs.
5. Subtotal, Discount, Tax and Total: Take note of the subtotal. This field calculates automatically based on the sums of the amount sections under products/materials and labor. If there's a discount, input it in the discount field, and the form will calculate the new total. Now, enter the tax rate applicable in the tax field and the form will update the overall total.
6. Leave Comments or Special Instructions: There's a comment or special instructions field where you can leave any necessary notes or instructions related to the invoice.
7. Specify Payment Due Date: It is important to specify when the payment is due. This information goes into the payment due field.

After you've input all the mandatory information, review what you've filled out and ensure that it's accurate before saving, printing, or sending it off to the client.

When to use an independent contractor hourly invoice template?

As an independent contractor, you'll need to regularly generate invoices to ensure swift payment for your services. But when exactly is the right time to use the contractor hours invoice template? Here's a brief guide:

• Once Task is Complete: Your invoice is essentially a bill. The most logical time to send it is right after you've completed a task or service. This helps in quick payment processing and also maintains a steady cash flow.
• Use for Regular Clients: If you have an ongoing agreement with a client where you're charging by the hour for your services, an hourly rate invoice becomes necessary. It encourages transparency between you and your client and ensures you're paid accurately for your time.
• During Tax Season: The contractor hourly invoice template comes in handy during tax filing. The invoices you sent throughout the year act as proof of your income and assist in determining your tax liability.
• Verification Purposes: When there's a need to verify the income being reported, say for a loan or mortgage application, these invoices provide a reliable record of your earnings.