How to Invoice Clients for Hourly Work

Invoicing is the step that turns your work into income. For hourly freelancers, a good invoice shows the client exactly what they're paying for — and makes it easy for them to pay quickly.

This guide covers what to include on a freelance invoice for hourly work, when to send it, and how to speed up getting paid.

What to include on a freelance invoice

A professional hourly invoice should include:

• Your name and contact info — or your business name if you have one
• Client name and address
• Invoice number — sequential, for your records and theirs
• Invoice date and due date
• Itemized sessions or line items — dates, descriptions, hours, and rate per line
• Total hours and total amount due
• Payment instructions — bank transfer, Stripe link, PayPal, etc.
• Payment terms — Net 15, Net 30, or due on receipt

Hourly vs. project-based invoicing

Hourly invoices break down charges by time. Project-based invoices show a flat fee for a deliverable. Most freelancers who bill by the hour still use hourly invoices even for fixed-price projects — they just don't show the per-hour breakdown to the client.

The advantage of showing the hourly breakdown is transparency. Clients can see exactly what they paid for and why the total is what it is. This reduces payment disputes significantly.

When to send an invoice

Monthly billing

The most common approach for retainer clients. Send at the end of each month for that month's work. Set a consistent date — the 1st or last day of the month — so clients know when to expect it.

Milestone billing

Send an invoice when a project phase is complete. Good for project-based work with natural checkpoints.

Weekly billing

For large ongoing engagements, weekly invoicing improves your cash flow and catches scope issues earlier. Some clients prefer weekly invoices so the amounts are smaller and easier to approve.

Payment terms that get you paid faster

Net 30 (payment due 30 days after invoice) is standard, but it's not always in your best interest. For new clients, consider:

• Net 15 — 15-day payment window. Faster cash flow, still professional.
• Due on receipt — appropriate for smaller invoices or one-time clients.
• 50% upfront — require a deposit before starting work, especially for new clients or large projects.

State your payment terms clearly in your contract before starting work, and repeat them in the invoice. Surprises at invoice time cause friction and delays.

How to generate an invoice from your time tracker

The most efficient workflow is to track time in the same app where you generate invoices. That way there's no copy-pasting hours into a spreadsheet or invoice template — it's all connected.

In Tally, you can:

1. Open a client's Reports view to see all logged sessions
2. Tap "Generate Invoice" — it pulls the hours, rate, and session details automatically
3. Add the client's billing email and any notes
4. Send via Stripe, which handles the payment link and collection

The client receives a professional invoice with a Stripe payment link. You get notified when they pay.

Following up on unpaid invoices

Late payment is common. A polite follow-up on the due date is professional, not pushy.

• Day 0 (due date): Send a brief reminder if the invoice is unpaid. "Just following up on invoice #42, due today."
• Day 7: Follow up again if still unpaid. Mention you're available to answer any questions.
• Day 14+: Consider a late fee if your contract includes one. Most clients pay before this point.

Frequently asked questions

What payment terms do freelancers typically use?

Common options include Net 15, Net 30, and due on receipt. Net 30 is widely used in business-to-business invoicing; some freelancers prefer shorter terms. Whatever you choose, state the terms clearly before starting work so there are no surprises at invoice time.

How do I invoice for partial hours?

Rounding to the nearest 15-minute increment is a common approach. So 1 hour 22 minutes would become 1.5 hours, billed as a decimal. State how you round in your contract upfront so clients know what to expect.

How do freelancers typically handle late payments?

A polite follow-up when an invoice is overdue resolves most late payments. Some freelancers include a late fee clause in their contracts — what to put in a contract is a personal decision, and you may want to review with a professional if you're unsure what's appropriate for your situation.

How do I handle a client who disputes my hours?

Show them your session log — dates, start times, end times, and a short note for each session. A specific log ("Tuesday, 2–3:30pm — homepage responsive layout revisions") is very hard to dispute. Vague totals ("40 hours — project work") invite pushback. This is the main reason to add brief notes to sessions as you go.

Do I need a business account to invoice clients?

You can invoice clients as an individual. For questions about business structure, banking, or legal requirements for your situation, consult a local accountant or attorney — the right answer varies depending on where you are and how you work.

Invoice mistakes to avoid

• No invoice number. Hard to track and unprofessional. Start at #001 and increment.
• Vague line items. "Project work — 40h" tells the client nothing. Break it down by task or session.
• Missing payment instructions. Make it as easy as possible for the client to pay.
• Waiting too long to send. Work completed and invoiced in the same week gets paid faster than work invoiced a month later.