How to Accurately Bill Clients for Time Worked

How to Accurately Bill Clients for Time Worked

Bojan Radojičić
April 6, 2023

When working as a freelancer or consultant, accurately billing clients for time worked is crucial.

It is not only important for the financial health of your business but also for maintaining a good working relationship with clients.

Inaccurate billing can result in disputes, delayed payments, and damage to your professional reputation.

In this article, we will discuss some best practices for accurately billing clients for time worked.


1. Use Time-Tracking Tools

The first step to accurately billing clients for time worked is to use a reliable time-tracking tool.

There are many time-tracking tools available, both free and paid, that can help you accurately track the time you spend on each project.

When selecting a time-tracking tool, look for one that is easy to use, integrates with your other business tools, and provides detailed reports that you can share with clients.

Some time-tracking tools also allow you to set hourly rates for different projects or clients, making it easy to generate accurate invoices.

2. Create a Detailed Time Log

Once you have selected a time-tracking tool, use it to create a detailed time log for each project. In your time log, include the following information:

The date and time you started and stopped working on the project

The tasks you completed during each time period

The total amount of time you spent on each task

Having a detailed time log will not only help you accurately bill clients for time worked, but it will also help you analyze your productivity and identify areas where you can improve.

3. Establish Clear Billing Policies

Before starting a project, it is important to establish clear billing policies with your client.

These policies should include:

  • Your hourly rate or project fee
  • How and when invoices will be sent
  • The payment terms, including the payment due date and any late payment fees
  • Any additional expenses that will be billed to the client, such as travel or materials
  • By establishing clear billing policies upfront, you can avoid misunderstandings and disputes later on.

4. Invoice Promptly and Accurately

Once you have completed a project or reached a milestone, it is important to invoice promptly and accurately.

Invoicing promptly helps you maintain a steady cash flow and avoid delayed payments, while accurate invoicing ensures that clients are only billed for the time you actually worked.

5. When invoicing, include the following information:

  • Your business name and contact information
  • The client’s name and contact information
  • The invoice number and date
  • A detailed description of the work completed and the time spent on each task.
  • The total amount due, including any taxes or additional expenses
  • Your payment terms and instructions for payment

6. Communicate Clearly with Clients

Communication is key when billing clients for time worked. Before starting a project, make sure you have a clear understanding of the client’s expectations and deadlines.

Throughout the project, keep the client updated on your progress and any changes to the project scope or timeline.

If there are any issues with your time tracking or invoicing, communicate with the client as soon as possible to avoid any misunderstandings or disputes. By maintaining clear and open communication with clients, you can build trust and establish a strong working relationship.

7. Review and Analyze Your Billing Practices

Finally, it is important to regularly review and analyze your billing practices to identify areas for improvement. Take a look at your time logs and invoices to see if there are any patterns or discrepancies that need to be addressed. For example, you may notice that you are consistently underestimating the time required for certain tasks, or that you are billing too much time for others.

By reviewing and analyzing your billing practices, you can improve your accuracy and efficiency, which will ultimately benefit both you and your clients.


Accurately billing clients for time worked is essential for maintaining a successful freelance or consulting business.

By using reliable time-tracking tools, creating detailed time logs, establishing clear billing policies, invoicing promptly and accurately, communicating clearly with clients, following up on late payments, and regularly reviewing and analyzing your billing practices, you can ensure that you are billing clients fairly and accurately, while also building strong relationships with them.

Bojan Radojičić

Bojan Radojicic, Master Degree in Economics, is a financial performance consultant with more than 15 years of experience. He is responsible for adding value services based on innovative solutions.

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