A consultant hourly invoice is used to formally request payment from clients for professional advising in a specific area. Consulting services are typically charged on an hourly ($/hr) basis.
Table of Contents
- How to Create a Consultant Hourly Invoice That Gets You Paid Promptly and Without Hassle
- What Is a Consultant?
- Calculating an Hourly Invoice
- Consulting Agreement Template
- Key Features of a Consultant Hourly Invoice
A consultant hourly invoice is a document that a consultant creates to bill a client for their services. The invoice should list the details of a completed project and give the client clear instructions on how to pay the cost of those services. The consultant should keep a copy of the signed invoice for their records.
A consultant working by the hour is either an independent contractor or a business owner specializing in consulting. Those working on an hourly basis do so in the same fashion as attorneys, often requiring a deposit upfront. There is no standard hourly price that consultants charge, as pricing fluctuates depending on the type of consulting and the quality of expertise, among other factors. Charging by the hour is preferred for smaller projects. Larger projects that need consultation typically charge a set price for the entire project.
Consultants do not always charge the same hourly rate for every job. A savvy consultant will first try to understand a client’s needs before quoting an hourly rate. When calculating an hourly rate, remember to include the cost of travel and expenses. These costs are generally a percentage of the total project cost and is paid in addition to the consultant’s regular fees. The travel fee can vary depending on the location of the project, the length of the project, and the consultant’s travel expenses.
Use this formula to calculate a baseline hourly rate for consulting services. In this example, the consultant agrees to complete the job for $12,000 over the course of 5 weeks working 8 hours per day, which equates to $60 per hour.
[ Number of weeks (5) x Number of hours per week (40) = 200 hours and $12,000 / 200 hours = $60 per hour ]
The hourly rates for consultants can vary depending on a consultant’s area of expertise, years of experience, and location. In general, however, most consultants charge between $100 and $200 per hour. Some may charge more or less than this, but this is a good benchmark.
The consultant’s retainer fee is a fee that is charged by the consultant in order to provide their services. This fee is typically a set amount that is paid upfront, and it is used to cover the costs of the consultant’s time and resources. The retainer fee may also be used to cover the costs of any materials or services that the consultant needs to provide in order to complete their work.
Use the following template to formalize a consulting arrangement between a client and a consultant.
A consultant hourly invoice should include the following elements:
- Name and contact details (e.g. address, phone number, email) for consultant
- Consultant’s logo (if applicable)
- Name and contact information for individual or company contracting consultant
- Invoice number
- Description of work completed
- Time spent on work
- Cost of work
- Total amount owing
- Any applicable discounts or taxes
- Payment terms, including due date of payment
- Payment methods accepted (e.g. credit card, cash, PayPal, app-based methods)