By Type (12)

 

 

 

 

How to Create a Consultant Invoice That Will Get You Paid Fast

A consultant invoice is a bill that consultants give to clients, which includes a description of a project or service rendered and the amount due. By properly formatting clear, concise consultant invoices and implementing efficient billing systems, small businesses and self-employed contractors can increase their chances of getting paid on time.

What is a Consultant?

A consultant is a hired professional specializing in a particular field or niche. Consultant work spans all types of professions. Consultants can be hired per hour, per job, or on a full-time basis.

What Does a Consultant Do?

A consultant can play many roles in helping a business achieve its goals, whether helping a new business get up and running or helping a business owner pinpoint and resolve a problem within their company. Consultants with proven track records and who are experts within their fields can be highly paid. Consultants generally:

• Give expertise, fresh advice, and strategy to a business;
• Identify not-so-obvious internal issues;
• Play the uncomfortable roles such as hiring and firing employees; and
• Make changes to a company without having to worry about company politics.

Are Certifications Needed?

While certifications aren’t necessary for consulting, they can expand a consultant’s client base and income opportunities. Here are five certifications for consultants to consider:

• Project Management Professional (PMP)
• Certified Management Accountant (CMA)
• Certified Sales Professional (CSP)
• Certified Manager (CM)
• Certified Management Consultant (CMC)

Consultant Salary & Hourly Rate ($/hr)

• Salary: $90,456/yr (source: Glassdoor)
• Hourly Rate: $28.02/hr (source: Payscale)

Average Consultant Rates (By Type)

• Marketing consultant: $55,544 per year or $32/hour
• Restaurant consultant: $74,945 per year or $36/hr
• Human resources consultant: $79,315 per year or $38/hr
• Business consultant: $77,913 per year or $32/hr
• Tax consultant: $70,543 per year or $32/hr

Some consultants charge hourly in order to ensure that all time devoted to a project is accounted for in the total charge. Others charge on a project basis, as this eliminates uncertainty around the total balance. Project-based pricing will depend on the consultant’s experience. For example, a starting consultant might want to charge less in order to build a client base and portfolio of work.

Calculate Your Hourly Rate

Use a desired annual salary to determine a desired hourly rate. Self-employed contractors and freelancers often fail to build all costs, such as health insurance, into an hourly rate. By beginning with a baseline of a desired salary range, it can be easier to determine a rate that considers all business-related expenses. For example, if $75,000 is the desired salary range, then the calculation might look like this:

50 weeks x 30 hours = 1,500 working hours per year 75,000 / 1,500 = $50 per hour

What to Include in a Consultant Invoice

A consultant invoice is a document that a consultant sends to a client to request payment. The invoice should include the consultant’s name and contact information. It should also list the date, the services provided, the amount charged for each service, and the total balance due. The invoice should be signed by the consultant and state that payment is due within a certain number of days.

How Often to Invoice

This is a difficult question because it can vary depending on the type of consulting work being performed, the agreement between the consultant and the client, and other factors. However, in general, it is generally advisable for consultants to invoice their clients on a monthly basis. This allows the consultant to keep track of their work and expenses more easily, and it also allows the client to budget for the consultant’s fees in advance.