To bill a client for services, agree on the method before work starts, put it in writing, bill on a fixed schedule, and send the invoice the day the work is done or the milestone is reached. The method matters more than the invoice template. Pick from four: hourly, fixed price, milestone, or monthly retainer.
Most billing problems are decided at the start of the job. A client who never agreed to a rate, a due date or a deposit has nothing to hold you to, and you have nothing to point to. The steps below get the decision made early and the money coming in on a schedule.
Choose the method that fits the work
| Method | Use it when | Example bill |
|---|---|---|
| Hourly | The scope is unclear or changes, such as repairs or advisory work | 14.5 hours at $95 = $1,377.50 |
| Fixed price | You can describe the finished result and know the effort | Logo and brand sheet, $2,400 |
| Milestone | The job lasts weeks and has clear stages | 40% at signing, 30% at draft, 30% at delivery |
| Monthly retainer | The work repeats every month | $1,800 a month for up to 12 hours |
Hourly protects you when the client keeps changing their mind. Fixed price rewards you for working fast but punishes you for vague scope. If you are choosing between the two, hourly rate versus flat fee works through the trade-off with numbers.
Ask for money before you start
A deposit turns a maybe into a commitment and covers your early costs. A workable starting point for a service job is 30 to 50 percent of a fixed-price job, billed at signing. Put it on the first invoice, due on receipt, and tell the client that work starts when it arrives. The wording is in how to ask for a deposit.
Say a bookkeeper named Ana takes on a $3,000 cleanup of a client's books. She bills $1,200 at signing and $1,800 on delivery. The client has paid 40 percent before Ana opens the file, and the second invoice goes out when the work is handed over.
Write the terms in the agreement
Before you bill, the agreement should answer six questions. If it does not, add them in a single paragraph and get a reply that says "agreed."
- What is the rate or the price?
- What is included, and what counts as extra?
- When do you invoice: at signing, at each milestone, monthly, or at the end?
- How long does the client have to pay? Net 30 is common. Shorter terms such as 14 days suit small jobs.
- How can they pay: bank transfer, card, check or a pay link?
- What happens when payment is late: a fee, a paused project, or both?
If the fee clause makes you nervous, late payment fees explains how to word one, and payment terms covers what Net 30 means in practice.
Bill on a schedule, not when you remember
Pick a rhythm and keep it. Weekly for hourly work that adds up fast. The 1st of the month for retainers. The day of delivery for fixed prices. Invoices sent late get paid late, and clients forget the details of work that is a month old. When you send an invoice the same day, the work is fresh and the client has little to question.
- Hourly: list the dates, hours and a short line per entry. "Oct 6, 2.5 h, reconciled September card statements."
- Fixed: name the deliverable and attach it or link it.
- Milestone: name the milestone and the percentage that was agreed.
- Retainer: state the month, the hours included and the hours used.
The parts of an invoice and a filled-in sample are in how to send an invoice, so this page stays on the decisions that come before it.
Know what the client may have to report
If your client is a business and you are not an employee, they may have to report what they paid you to the IRS. The IRS instructions for Forms 1099-MISC and 1099-NEC say to enter nonemployee compensation of $2,000 or more, and that for tax years beginning after 2025 the minimum threshold was increased to $2,000, with possible inflation adjustment from calendar year 2027. So a client who pays you $2,000 or more in 2026 files a 1099-NEC for you in early 2027; the old line was $600. Your client will likely ask for a W-9 with your name, address and tax ID. Send it with your first invoice and the request will not hold up payment. This is a prompt to check with your own tax adviser, not tax advice.
What to do when the invoice goes unpaid
A reminder one day before the due date, one the day after, and a call on day seven handles most late payers. Keep the tone plain: "Invoice 1042 for $1,800 was due Friday. Can you tell me when to expect it?" The sequence is laid out in how to follow up on an unpaid invoice.
A first-job checklist
- Method chosen and written down.
- Deposit invoice sent with the signed agreement.
- Billing dates added to your calendar.
- W-9 ready to send.
- One place that records what you billed and what was paid.
Billing is the back half of getting a client, and it only matters if there are clients to bill. Rocketship handles the front half, finding buyers, emailing them from your own Gmail and booking the meeting, and its quotes let clients sign and pay online through Stripe, with a 1% Rocketship platform fee. See the plans or start the 7-day trial.