Freelancers gotta get paid. Hours and projects and contracts can net some pretty sweet pay-offs at the end of the month. It’s how you turn those invoiceables into cold, hard deposits that can be finicky. 

Determining how to account for hours you spend may not be clear to unseasoned freelancers. Tasks, breaks, team meetings, research––it can often be a bit much in the brainwork space. Even then, turning your billables into an invoice and sending it off professionally isn’t always cut ‘n dry either.

Have no fear! This guide will delve deep into the best practices around for counting, billing and invoicing your clients with absolute accuracy and total confidence. 

7 tips & tricks for counting, billing and invoicing hours

It’s important to set the groundwork for your upcoming invoices ahead of time. This doesn’t start after a work agreement is made! You must discuss your work before reaching an agreement with a client.

We’ve got 7 amazing tricks of the industry to ensure your process is smooth as butter from beginning to end (and hopefully beyond). Let’s start at the beginning.

Before you start working with a client

Professionals stand out by their upfront readiness. When clients reach out, or a new relationship is being cultivated, you can immediately shine by your preparedness. Invoicing can be a pain for both parties in a freelancer/client relationship, but it never needs to be. 

What can you set up to ensure your billables hit your bank account when they should?

Tip 1: Set clear expectations with clients upfront

You’re likely set up to send invoices but, if not, we’ve got a handy guide on Invoicing as a Freelancer ready to go for you.

Before starting out a new client relationship, you should be setting clear guidelines on your billable hours. Let the client know that you’re charging for things like:

• Projects work
• Client meetings
• Research

And perhaps not for things like:

• Unpaid breaks
• Travel times
• Co-working space costs

Discussing these upfront in a contract prevents misunderstandings when it’s time to send that invoice and get paid. Leave no stone unturned, and your new client won’t have to deal with unnecessary back and forths in invoice-related comms (and you won’t either).

Tip 2: Track your hours with reliable tools & services

It’s important to be sure of what work you’ve done. Proving it to your client is a cherry atop the “I’m a pro” sundae that you’re serving up. We’ve got some handy tools to recommend for tracking your hours:

• My Hours
• Clockify
• TrackingTime

Using a time-tracking tool makes it easier to accurately count and categorize hours. These services can help you track project-specific hours and give clients a transparent report on how your time was spent.

Some projects often require recurring invoices that help streamline the billing process when set up correctly. If you’re curious how to set these up, Xolo can help you in dealing with recurring invoices as a freelancer. 

During and after the work is done

Now that your client acknowledges your proficiency in freelancing, the next steps are in understanding what your billable hours are, how to tally them and sending off that invoice.

We’ll cover everything from travel time to invoice creation, and let you know how Xolo shines as the #1 service for generating and sending professional invoices, whether or not you have a registered business. 

Tip 3: Billing for lunch hours and breaks

Typically, lunch breaks are considered non-billable unless explicitly agreed upon with your client. There’s a few different categories of break you should consider when working with a client.

• Standard lunch breaks: These are generally non-billable, but that’s dependent on your agreement.
• Quick breaks: If you take a short break to grab a coffee, consider whether this is within the client’s expectations of a productive work pace. 
• Working lunches: If you attend a working lunch or a meeting, log it separately as a “working lunch” to ensure transparency.

Keep clear records of these hours in a time-tracking tool for transparency. We’ve got some handy tips on how to start, keep and enjoy your freelancing schedule if you’re interested.

Tip 4: Billing for team meetings and gatherings

Freelancers are often invited to client team meetings, which may or may not be directly related to project work. Your time is worth paying for, and most often these meetings are considered billable hours. Just remember to ensure your client knows this beforehand.

Some types of meetings that you’d likely consider billing for may include:

• Project-specific meetings: Bill these hours if they involve any direct project discussion.
• General team gatherings: If a meeting is informal or unrelated to project work, consider excluding it from billable hours unless previously discussed with the client.
• Remote collaboration meetings: Some client calls focus on relationship-building or improving team dynamics. 

Discussing how to handle these in advance will help ensure alignment with client expectations. You may take a quick call or two for free, but remember that your time spent is mostly time billed.

Tip 5: Use transparent descriptions in your invoices

Providing a clear breakdown of hours on your invoice builds client trust and clarifies the value of your work. Here’s an example of how you may structure an invoice entry:

• Project Work (5 hours): Tasks including [specific activities, e.g., research, content creation].
• Client Meeting (1 hour): Discussed project updates with [Client’s Team].
• Working Lunch (1 hour): Lunch meeting with [Client’s Team] to discuss project milestones.
• Non-billable hours: Exclude personal break time or admin work.

Transparency in your invoices helps clients understand where their money is going and encourages open communication. The added bonus? You’re far less likely to run into delays when it’s time to get paid.

Tip 6: Handling travel time

When travel is necessary for a project, it’s often fair to bill for this time. It’s a rather simple breakdown:

• Billable travel: If you’re visiting a client’s office for project-related work, clients often expect to pay for travel time.
• Non-billable travel: For non-project-related events, travel time is usually not billed unless previously agreed upon.

Clarifying this in your initial discussions with the client will set the right expectations and prevent future confusion. Depending on the type of travel, you may also be up for compensation of travel costs, or at least writing these costs off as a work expense for tax purposes.

Tip 7: Be prepared to discuss and justify your hours

Occasionally, clients may have questions about hours or specific charges. Being able to explain the value of your time and showing a record of how you spent it can help resolve any concerns.

If you’re looking for additional ways to simplify billing and time management, Xolo offers invoicing tools that can automate the process and help keep things organized. Check out our tools and solutions to learn how they can streamline your freelance business, and let you send invoices like a freelance master.

By implementing these best practices, you’ll establish clear boundaries with clients, maintain a productive schedule, and build stronger, more transparent client relationships. For further insights on managing time, invoicing and achieving a steady cash flow, the Xolo blog library is your free, invaluable resource.