Invoice billing can provide a flexible solution for clients seeking continuous support from contractors. Here's a guide to navigating invoice billing, including both fixed and hourly types, on Contra:
Understanding Invoice Billing
Invoice billing is designed for tasks or projects that require regular, continuous attention over an extended period. Clients can choose between two types of ongoing projects: fixed and hourly. The client gets invoiced at regular intervals. This can be based on a fixed fee or hours worked.
Fixed Invoice Billing
In fixed invoice billing, clients and contractors agree on a set scope of work to be completed on a recurring basis. Clients pay a predetermined amount for each cycle of work, regardless of the actual time spent by the contractor. Fixed invoice billing is ideal for tasks with well-defined deliverables and consistent workloads.
Setting Up Fixed Invoice Billing
Clients initiate fixed invoice billing by defining the scope of work, specifying the payment amount for each cycle, and establishing the frequency (weekly or monthly). Contractors review the project details and accept the fixed billing if it aligns with their availability and expertise.
Hourly Invoice Billing
With hourly invoice billing, clients pay contractors based on the actual time spent on each cycle of work. Contractors track their hours worked and submit them for client approval and payment. Hourly invoice billing is suitable for tasks with varying workloads or uncertain project requirements.
Payment Structure for Invoice Billing
For both fixed and hourly invoice billing, clients make regular payments to contractors based on the agreed-upon schedule (weekly or monthly).
Flexibility in Invoice Billing Duration
Clients have the flexibility to determine the duration of projects that use invoice billing based on their long-term needs and budget considerations. Whether it's a short-term engagement or a continuous partnership, clients can adjust the project duration as needed.
Managing Project End Dates
Clients and contractors can mark projects that utilize invoice billing as complete at any time.
In summary, invoice billing offers a flexible and scalable solution for clients seeking continuous support from contractors. With clear payment structures and flexible project durations, clients can effectively manage their long-term projects on Contra.