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Here Is How You Can Track Hours and Convert Them Into Invoice


Often companies and freelancers charge by the hour but get confused about how they can invoice for the same. While there are several time tracking software for freelancers, knowing the right method to make an hourly invoice is important. 

The first thing you need to do is track the number of hours spent working for a client. The next step is to send the bill at the agreed-upon cycle. It can be weekly, bi-weekly, or monthly. 

Make sure you outline the tasks you are charging for, the time you have spent on them and your charges per hour in the invoice. While all this is more or less common, make sure you provide your clients with multiple payment options by investing in the digital payment processing software. This will help you get paid on time and stay cash flow positive. 

The Process to Write An Hourly Invoice

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The first step to create an hourly invoice is to get your time entries in place in your time tracking software. If you track hours in a spreadsheet, double-check them to see if you have missed out something. 

The next step is to create the invoice using your online software, Word, or Excel. Here are the steps to create one. 

  • Title your document as “Hourly Invoice”
  • Add your business name and contact details in the header. 
  • Below the header, mention invoice number, due date, and date of issuance in clear, bold letters. 
  • Towards the right of your document, enter all relevant client details like their name, email address, and postal address. 
  • Now that you have added all the details, it is time you provide the description of the work and the time you have spent completing each task. 
  • To have a readable, make a separate row for each task and mention the number of hours for each on the right. Once done, add the amount per task in the amount column. 
  • Now that you have calculated all the amounts, calculate the total and add taxes to get the final amount. 
  • You will have a notes section at the bottom. This can be used to include your chosen payment methods, expected timeline and late payment charges if the not paid on time. 
  • Last but not least, make sure you thank the client for giving you this opportunity to work. 

The best thing you can do is to invoice your clients promptly. This will also urge them to pay you on time and not resort to any excuses. Make sure you maintain a copy of your system for tax purposes and your time entries stored in your time tracking software. 

Make sure you add the below-mentioned information. 

  • Name and contact information
  • A bold invoice number 
  • Date when you have issued the invoice
  • Client’s contact details
  • Complete list of services 
  • Your hourly rates (as per the initial agreement)
  • Total hours worked 
  • Amount your clients need to pay you 

How Should You Number Your Invoices?

Online invoice software lets you give unique numbers to your invoices. By doing so, your clients and tax authorities can locate an when they need a copy. Here are some ways you can number your invoices. 

1. Sequential Numbering

One way to number your invoices is by sequence. You can number them 1,2,3 and so on. But, if you prefer a three-digit number, you can replace it with “00”, the next will then be 001. 

2. Customer Number

You can also choose to assign numbers using a project or customer number. For instance, STAC01234. Here STAC represents a project or customer code that will be followed by a numeric sequence. While you can choose to start from any number you want, make sure you use consecutive numbers. 

How Should Freelancers Make Invoices?


An hourly invoice will help your clients understand how much a job costs. For this, you can use downloadable invoice templates offered by your online software and customize them. The main things you need to add are the kind of work you have done and the payment. Make sure you mention the hours you have worked on the project and add all relevant details. Your time tracking software will help you manage all details in one place. 

When it comes to receiving payments, make sure you clearly state the payment methods you accept. Also, let them know beforehand if there is any conversion fee associated with their selected payment method. Online invoicing solutions will help you simplify the invoicing process to a great extent and build long-term relations with clients. 

Wrapping Up 

This was how good online software and time tracking software could help you convert your hours. Invest in one today to streamline your payment cycle and boost business profits! 

Written by
Suza Anjleena

Suza Anjleena is a Blogger, Tech Geek, SEO Expert, and Designer. Loves to buy books online, read and write about Technology, Gadgets, Gaming, LifeStyle, Education, Business, and more category articles that are liked by most of her audience. You can contact me via Email to: Thanks

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