Many consultants and freelancers bill clients by date range. In other words, all the time and materials for a chosen date range are included on invoices. But did you know you can use invoicing milestones instead?
Scroll down for a video on the topic
Let’s say you have a flat-rate project. The client has agreed to pay a fixed amount for the entire job. Plus, you and the client have agreed on a payment schedule. Such schedules commonly include some amount up-front, sometimes an amount in the middle, and the remainder at completion. Those are payment milestones are a contractual agreement.
Now that you have agreed to the milestone payments, you can put them into your timesheet software and bill accordingly. The video below demonstrates three ways to bill clients by milestone.
1. Bill clients by date range
Just choose a date range, and the software will find all the time and materials that fall in between those dates. Those will be totaled up for the invoice.
2. Bill clients a fixed amount of the project
Enter a dollar amount, and the invoice will include that amount. The time and material may also be included on the invoice, but the invoice subtotal will use this specified amount.
3. Bill clients a percentage of the project
Enter a percentage of the total project amount. The invoice subtotal will be a percentage of the total fixed bid. Time and materials may also be included, but their costs will not be used for the invoice subtotal.