At certain points during a construction project, contractors expect to get paid for their work. Whether it’s one bill at the end of the job or several smaller bills throughout its lifetime, these payments help the business keep the lights on, grow, and take on more jobs. Having a reliable, comprehensive construction invoice template gives your accounts receivable process the foundation it needs to make billing as smooth as possible. Construction invoicing software is a helpful asset for businesses looking to save time and increase profits by simplifying their payment processes. This type of software allows a business to easily create, send and track invoices for construction projects. It’s a user-friendly online tool that also connects to your accounting software for accurate reconciliation.
Invoice Form 750 2-Part or 3-Part
Of course, making demands outside of the mechanics lien process could help, too. Every construction business has its own invoicing practices, and everyone knows what works best for them. You can find templates as fill-in PDFs, Microsoft Word or Google Docs, Excel or Google Sheets spreadsheets, and invoicing software such as Invoice Fly.
- Construction invoice software helps alleviate the pains of accounting and reduces errors that result in costly consequences.
- Invoices establish a payment obligation, thereby creating an account receivable.
- After summing the “Amount” column and adding the value to the “Total Products” field, add both the “Total Products” and the “Total Labor” values to calculate the “Subtotal”.
- Larger construction companies likely realize why they should have construction invoice templates, but smaller outfits might not.
- This document is crucial for managing project details, ensuring accurate billing, and maintaining clear communication between contractors and clients.
Construction Invoice Template Word, Excel & PDF Format
These changes could be anything from changing text to adding your own terms and conditions. Further customize your order by choosing your ink color, adding a logo or placing your forms into books. Online tools will always be faster than doing things by hand. Let us manage your invoices, so you can focus on what you do best. You’ll also eliminate double work by quickly creating an invoice from other features like Estimates, Change Orders, Lead Proposals, Bills, Purchase Orders or Selections. For a state-by-state breakdown of contractor licenses, check out GeneralContractorLicenseGuide.com.
Estimate & Invoice
Learn how Levelset can help you easily manage your lien rights on every project to ensure your payments are always protected. Again, lump sum and unit price contracts aren’t concerned with labor costs. However, cost-plus contracts also care little about labor, so it’s okay to remove this section.
- It’s easily customizable to perfectly fit your brand – change sizes, mix in your choice of colors, and select the most fitting photos or icons from our free stock libraries.
- Different projects might call for slightly different invoice formatting—that’s why we made our construction invoice template so flexible.
- We offer a full set of features that allows you to not only invoice clients, but also pay subs, get insured, receive lending and manage all business expenses.
- Construction invoices are documents that contractors use to work out how much money they’re owed by their clients and when those costs should be paid.
- She founded the first fully online, unbundled law firm and is an expert on legal AI and technology.
- So, an invoice will usually reflect terms agreed to via purchase order.
- Download the template in Adobe PDF or Microsoft Word (.docx).
- This ensures your client knows who sent the invoice and makes it easy for them to contact you if they have questions.
- This ensures that all payment details are clear and the client knows exactly how to proceed.
- Finally, round out the construction invoice template with a section dedicated to payment details.
- With the form, expenses can be broken down item-by-item, giving the customer a clear picture as to what was charged and why.
It needs to contain certain information to ensure it reaches the right Certified Bookkeeper people and leaves no room for doubt or mistakes. If you’re developing your own construction invoice template, be sure it includes the following critical elements. Invoicing clients is crucial to running a successful construction business. By using construction invoice software, you’ll keep numbers accurate while simplifying workflows and improving organization.
Cost Plus Contract Invoice Template
It’s a good idea to provide enough information to support the requested payments, but not too much where the invoice becomes illegible. One easy way to accomplish this is through standardization. Invoice requirements might differ somewhat from project to project, but having a basic format and uniform method of labeling work or products helps everyone.
Similar to the last example, all costs are again passed onto the customers construction invoice here. Progress-based billing is a little more complex – because it’s designed to spread your income over the length of a project. And since we’ve so neatly landed on the topic, what better time to dig into some of those invoicing methods? The client hasn’t yet paid their dues and you’re increasingly beginning to wonder whether they’re actually going to. List all materials, then add up the total and write it as the Total Materials cost. This provides the client with an overview of the services provided.
You can quickly scan dates and contract numbers to see which are outstanding, and which might need a payment reminder. When you submit a pay application with a detailed, clean, well-organized invoice, the general contractor or project owner will notice. They’ll likely respect your business more and are less likely to test your business acumen by dragging out the payment process. Including an area on the template for project information seems basic. We integrate with QuickBooks and Xero for easy accounting reconciliation. You can create an invoice from an Estimate, Lead Proposal, Bill, Purchase Order, Change Order or Selection.
Where a lien or bond claim isn’t available, pursuing legal assets = liabilities + equity action or taking to small claims court can always get the job done. Typically, invoices provide for 30 days of credit, though some larger companies even go as high as 120 days. Longer payment terms lead to higher debt ratios which can be fatal to a company’s finances. Many small to medium sized businesses are using 7 days to help maintain consistent cash flow. Be sure to maintain an organized record of all things related to the invoice. Contractors are paid for the work they document, not necessarily the work they perform.