Contractor Invoicing Software
How independent contractors can bill each client with Billed: an estimate the client approves before the work starts, invoices from tracked hours or a fixed price, a due date on every invoice, and each client's invoices and payments kept together for tax time.
Key Takeaways
- In the US, the IRS's page on independent contractors (page last reviewed or updated May 19, 2026) says contractors who provide services to other businesses are "generally considered self-employed".
- Agree on the price with each client on an estimate, then convert the approved estimate into the invoice.
- Bill hourly work from an hourly rate project, where "Billed tracks the charge for each task as you log it" (Billed's time tracking page).
- Each client's invoices, estimates and payments stay together in their client profile for tax time.
Invoicing as an independent contractor
In the US, the IRS says on its page about independent contractors (page last reviewed or updated May 19, 2026): "If you are a business owner or contractor who provides services to other businesses, then you are generally considered self-employed." A client that pays you may ask for a Form W-9. The IRS's Form W-9 page (page last reviewed or updated June 27, 2026) says: "Use Form W-9 to provide your correct Taxpayer Identification Number (TIN) to the person who is required to file an information return with the IRS to report, for example: Income paid to you."
Your invoices carry your own business details. Billed's invoice software page says you can "Choose an invoice template, add your logo and business details." This page doesn't give tax advice; whether you're a contractor or an employee for a given client depends on the facts, so ask the IRS or an accountant.
Agree on the price before the work
Put the scope and the price on an estimate. Billed's features page says "your clients can approve or reject your estimates online", and lists "Estimate Attachments": "Attach important files and images with your estimates." A statement of work can go with the estimate.
Once the client approves, Billed's invoice software page says you can "convert an approved estimate into an invoice." For hourly work, Billed's time tracking page says: "Create an hourly rate project, set its hourly rate, and Billed tracks the charge for each task as you log it. From the project dashboard you can invoice one task or several at once."
Worked example: two clients in one month
These are sample figures, not suggested rates. An IT contractor bills two clients for June.
Client A, hourly: an hourly rate project at 95.00 an hour. The contractor logs 32 hours of support work, 3,040.00, and invoices the tasks from the project dashboard with a due date 15 days out.
Client B, fixed price: an approved estimate for a network setup at 2,500.00, converted to an invoice with a due date 30 days out.
The contractor bills 5,540.00 for June across the two invoices. The sample leaves out sales tax; whether your services are taxable depends on what you sell and where, so ask your accountant.
Due dates, reminders and payment
Billed's invoice software page says: "Set a due date on each invoice so your client knows when to pay." Billed's help center says: "Turn on the 'Payment Reminders' option while creating or editing an invoice." It adds: "You can set a schedule of payment reminders before and after the invoice's due date." It also says "You can send up to three reminders."
Billed's invoice software page answers "How do my clients pay invoices online?" with: "Connect Stripe and each invoice gets a pay button for card payments, or connect PayPal to add a PayPal option. Payments made by check or cash can be recorded in Billed as offline payments."
Records for tax time
Billed's client management page says: "Each client profile in Billed includes a complete history of invoices, estimates, and payments." Billed's features page lists "Client Payments": "See all the payments made by a client in one place." Billed's reporting page says reports "can be filtered by date range and exported."
In the US, the IRS's self-employment tax page (page last reviewed or updated October 30, 2026) says: "The self-employment tax rate is 15.3%." This page doesn't give tax advice; ask your accountant what to set aside and when to pay.
Contractor Invoicing in Billed
Estimates before the work
Send the scope and price as an estimate the client can approve online, with the statement of work attached.
Related Features
Explore the Billed features that power contractor invoicing.
Frequently Asked Questions
Start Invoicing With Billed
Set up your account and send your first invoice with Billed.
At a glance
| You bill | In Billed |
|---|---|
| A fixed price | Approved estimate, then invoice |
| Hourly work | Hourly rate project |
| Payment terms | A due date on each invoice |
| A check from a client | Offline payment |
When this isn't for you
If you already send invoices from accounting software, Billed fits the invoicing around it: estimates, hourly and fixed-price invoices, due dates and payments.