Invoicing: Breaking Down The Costs

Tuesday, July 8th, 2008 | Finance with

If there’s something I’ve learned about invoicing over the years, especially when working with small groups, bands or projects where jobs tend to build up over time is this - break down the invoicing.

I’ll often have mails or calls from people asking for figures “off the top of your head” or the traditional “ball park” figure. Sometimes when people see or hear those figures they become alarmed or question why the response they receive.

However, when shown a full breakdown and itemised invoice for tasks completed they soon realise what is at hand.

If you’re starting out working for yourself and getting around to issuing your first set of invoices to a client - be thorough.

Instead of charging for “web development”, can you outline what went into it and break down once off and recurring costs? Domain registration, hosting, email, phone calls, travel expenses, design, build, commercial additions?

Did you incur any additional costs along the way directly related to the project?

If anything

  • It helps you understand and visualise the financial cost of the project
  • It helps your client understand and appreciate the cost of the project

It also gives you a good grounding for the future when it comes to billing for different elements of a project. So if you’ve been one of those people who throw out bulk figures on a job, why not take a minute to break down the cost and reap the benefits later.

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