![]() The Invoice Date: this date represents the date the invoice was issued, not necessarily the date the work was completed. Among other invoice payment terms, these can include: However, there are still a few widely used invoicing best practices that can help ensure the invoice being created is both accurate and useful. There is no universally accepted way to create an invoice. Whether you are using QuickBooks, Xero, or anything else, most will have built-in invoice generates that are usually fairly easy to use.Ĭonnect QuickBooks and Wise: Save time on reconciliation Components of an invoice If you currently use any sort of accounting software, you’ll have plenty of other options for creating invoices. Additionally, make sure to save the invoice as a PDF, which is more professional and cannot be (directly) altered. If it is the first time creating an invoice, consider using an invoice template to help you get started. One of the easiest ways to do this is simply using a Microsoft Word document, or equivalent. There are several different ways you can create an invoice as an independent contractor. How Do I Create an Invoice as an Independent Contractor? This can be very important in a court of law. The existence of an invoice can help prove that someone was alerted of a payment obligation and, in some cases, that this payment was formally agreed to. Even once the invoice has been fully processed and the payment has been received, holding onto invoices can also be useful for paying taxes, creating future budgets, and addressing other financial needs. In other words, invoices play an essential role in establishing a “paper trail” between the payee and payer. Invoices make it easy for the payor to know the exact amount they owe the other party, as well as know the other terms involved with the payment, such as when the payment is due and what the preferred payment method will be. ![]() Why are invoices necessary as an independent contractor? Developing better invoicing practices is essential for any independent contractor who wants to make sure all payments (both incoming and outgoing) are made correctly. ![]() In most cases, an invoice creates a legal obligation to for the payor to either dispute the invoice or make a payment. Invoices are broadly used, across many different industries and many different countries, to indicate who owes whom, when they owe them, and how much they owe them. What is an invoice for an independent contractor?Īt its core, an invoice is simply any sort of bill that represents an obligation of payment from one party (usually deemed “the payor”) to another party (usually deemed the “payee”). An astounding 61% of all late payments are the result of incorrect invoices.¹ In many cases, this means learning how to master the art of creating an invoice.
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