What should a consultant invoice include?
List client info, project scope, dates, billable hours or flat fees, taxes if required, and clear payment terms. Add SOW or PO numbers and any milestone notes. These details show exactly what you delivered and prevent disputes while keeping records clean for both sides.
Do consultant invoices need taxes?
It depends on where you work and what you sell. In the U.S., some states tax services. In Canada, use GST/HST/PST as required. In the U.K., add VAT if you’re registered. Check local rules and note the tax rate and registration number when applicable.
How do I handle retainers and milestones?
Show the retainer amount, what it covers, and the period it applies to. For milestones, list the phase name, date, and price (e.g., discovery, strategy draft, implementation). If you draw down from a retainer, show usage and remaining balance on each invoice.
Template vs invoicing software for consultants?
Use a template for rare invoices or one-off projects. Choose software if you bill hourly, manage multiple clients, send retainers, or need reminders and online payments. Software saves client data, automates totals, and keeps your history audit-ready.
What payment terms work best for consulting?
Net 15 or net 30 is common. For larger scopes, ask for 30–50% upfront and bill at milestones. Add late fees and accepted methods. If clients use POs or vendor portals, include the PO # and follow their submission steps to avoid delays.
How do I capture out-of-scope work cleanly?
Add a change-order line with a short description, date, and price. Reference the SOW clause that allows change orders. Keep it separate from planned milestones. This protects you and makes the extra work clear to the client.
