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An IT contractor invoice is a document designed to provide IT (Information Technology) professionals with a straightforward means of charging for services they provide. IT contractors act as companies instead of freelancers, engaging in business-to-business contracts assisting both startups and established businesses with consulting and short-term projects.
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IT contracting is a means of offering technical services on a contract basis in comparison to being a standard salaried employee. Companies often use the services of contractors when an in-progress project reaches a point where work cannot continue due to a unique problem or skills gab. Companies can hire a contractor that is specialized in whatever area needed in order to keep the project moving forward. Contractors can be hired for any length of time, with the average duration being six (6) months.
Contracting for IT services is not for all. For those that can handle a certain amount of risk and other drawbacks, the benefits can be well worth it.
- Increased salary. Due to the convenience offered to companies, contractors can (and rightfully so) request hire rates. Additionally, because they do not have the benefits a standard employee would have, they charge more to cover insurance, travel, and other business expenses.
- Immense variety. Contractors can work in completely different fields from one contract to the next.
- In control. No one can tell a contractor they can’t take a vacation or a sick day. If they want to start working for companies in another state or country, it’s up for them to decide.
- Work isn’t guaranteed. If the contractor can’t line up contract after contract, they can find quickly themselves in financial trouble. To avoid this, plan for the worst and build up a financial cushion for the time between jobs.
- Time-off is unpaid. Contractors need to factor in vacations, holidays, and periods of down-time into the rates they charge.
Looking at the pros and cons, it’s clear that the biggest hurdle contractors face is the uncertainty in finding work. If that can be mitigated, the case for becoming a contracted employee is strong.
The salary of a contractor in IT depends on their 1) experience, 2) specialties, 3) location, and 4) hours worked. For those motivated to expand their skills, network at every given chance, and work long hours, the payoff can be great.
Salary: $68,473/yr (source: Glassdoor)