Consulting Invoice Template

Running a consulting business can be rewarding. Recovering payment for your services, though, can sometimes be harder than it looks. A complete, professional consulting invoice may make it easier to recover the payment you deserve.

What to Include on the Invoice

Generally, a consulting invoice should at least include the following:

• Your business’s contact information
• The client’s contact information
• The due date
• Line items and the payment breakdown for each
• Subtotals, discounts and taxes
• The total amount due
• Payment instructions

Many consultants also include a brief “thank you” or other note at the bottom of the invoice as well.

Choosing Your Fee Structure

Before you start creating your invoice, you’ll need to select a fee structure. These are a few to consider:

• Hourly billing
• Daily billing
• Project-based billing

Retainer billing is another option. Many people associate this fee structure with attorneys and law firms, but some consultants use it, too.

Avoiding Common Invoicing Mistakes

These are a few mistakes many consulting services run into when creating invoices:

Unclear Descriptions

Make sure your invoice breaks down the services the client received. Vague descriptions like “consulting services” can invite billing disputes.

Poor Formatting

Use a consistent invoice template for each invoice, and always check for errors before sending an invoice to the client. Messy or unprofessional invoices can harm your reputation, and clients may feel less inclined to pay promptly.

Late Delivery

If you wait weeks to send an invoice to a client, it sends the message that payment isn’t urgent.

Best Practices for Sending Invoices

These tips and best practices may help make it easier to recover payment in full and on time:

• Always clearly break down the services a client received so they know where their money is going.
• Offer multiple accepted payment methods to make it easier for clients to pay.
• If you have many clients, consider automated billing and invoicing software.
• Always follow up on missed or late payments.

When you create your consulting service agreement, make sure it clearly states that the client has an obligation to pay promptly.

Getting Paid Upfront and on Time

If you anticipate having trouble recovering payment, you might consider adding early payment discounts. Setting up automated reminders is another easy way to boost payment compliance. Many companies opt to send payment reminders a few days before the due date and on the due date.

Following Up on Late Payments

Sometimes, a client may have simply forgotten to pay an invoice. In this case, it may just take a phone call or email to resolve the issue.

However, if a client is persistently dodging your calls, it may be time to send a demand for payment letter. If that doesn’t work either, you might need to file a lawsuit.

The Importance of Using the Right Invoice

Having a professional consulting invoice doesn’t guarantee that you’ll never run into billing issues. However, it can underscore your business’s professionalism, build trust with clients and increase your chances of recovering prompt payment.

ConsumerShield can help you find the right invoices and other legal documents for your business. Explore our collection of legal document templates and guides today.