Hourly Invoice

An Hourly Invoice is a document used to charge for the number of hours dedicated to providing a service. While similar to a bill, the invoice differs in that it typically does not need to be paid immediately, but within the number of days listed on the document. There are two ways to charge for a service, one being hourly (this version), the other being a pre-determined amount.


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Hourly Pros & Cons

The Benefits of charging by the hour:

  • Considerably Less Risk

When working with a fixed rate, if your client requests revisions on your work or requests an additional service within the scope of the project, this reduces the value of the project overall – as you’re paid the same either way. With hourly pricing, revisions or additions to the project only mean you are working more paid hours.

  • More Straightforward

A flat rate allows customers to take a look at your rate and compare it with others in your field. There’s no guesswork, and it allows less work on your end when going after potential clients.

The cons of charging an hourly rate:

  • It can Sway a Client’s Decision

Let’s say you’re a mechanic being asked to replace the Catalytic Converter on a client’s Tahoe. When the client asked for a quote, you can either tell them a) it will cost $150 to replace or b) it’ll take me 30min to an hour to replace, and I charge $150/hr. The client will obviously like the sound of option a (assuming they are not familiar with automotive work), as in their mind, the job could have taken 3 hours to complete, only costing them $50/hr.

  • Charging Hourly Limits Potential

There are only so many hours in a day. By charging a rate for your work, you can only make a certain amount of money in a day – regardless of how much work you get done. By charging upfront for a project, you are only limited by how much work you can get done in a day. This increases motivation and leaves your clients impressed by your drive and efficiency.

How to Write in Adobe PDF and Word

Step 1 – Download in the Hourly Invoice in PDF or Word format.

Step 2 – Enter your company name and contact information in the fields at the top of the page.

Step 3 – Fill in the contact information of the client being billed for your services.

Step 4 – Next, enter a short summary of the service(s) you provided in the ‘Description’ fields. Then, enter the number of hours that you worked during each service, followed by the hourly rate charged for each.

Step 5 – Multiply the ‘Hours’ by the ‘$ / Hour’ column to find the ‘Amount’ column values. Sum these values to find the ‘Total Labor’ value. Add on any ‘Sales Tax’ to the ‘Total Labor’ to calculate the ‘TOTAL’ invoice amount.

Step 6 – Finally, enter any comments or requests you have for the client, and enter the number of days they have to pay back the invoice in full.