Question 1

How detailed should I be when billing consulting hours?

Accepted Answer

Break down your hours by specific activities rather than lumping them together. Instead of '20 hours consulting,' use '4 hours - Strategy Workshop, 12 hours - Market Research, 4 hours - Client Presentation.' Detailed line items reduce payment disputes and help clients understand the value delivered.

Question 2

Should I include a project reference or PO number on consulting invoices?

Accepted Answer

Always include project references, PO numbers, or contract IDs when billing corporate clients. Accounts payable departments use these to match invoices to approved budgets. Without them, your invoice may sit in a queue for weeks while they track down authorization.

Question 3

What payment terms are standard for consulting invoices?

Accepted Answer

Net 30 is common in the US consulting industry, but Net 15 or Net 14 is also widely accepted for smaller engagements or new client relationships. For retainer work, invoice at the beginning of each month. Always state your terms explicitly on the invoice to avoid confusion.

#	Service Description	Hours	Rate	Amount
1	Strategic Planning Session Initial stakeholder requirements gathering and analysis	4	$150.00	$600.00
2	Market Research Report Comprehensive analysis of competitor landscape	12	$150.00	$1,800.00

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Lessons from Consulting Engagements

Log Your Hours in Detail

Reference the PO/Project ID

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