{"id":2759,"date":"2019-05-16T11:57:26","date_gmt":"2019-05-16T11:57:26","guid":{"rendered":"https:\/\/clockify.me\/blog\/?p=2759"},"modified":"2026-06-18T02:00:00","modified_gmt":"2026-06-18T00:00:00","slug":"project-billing-invoicing-guide","status":"publish","type":"post","link":"https:\/\/clockify.me\/blog\/business\/project-billing-invoicing-guide\/","title":{"rendered":"Project Billing: Types, Stages &amp; How To Invoice Clients Accurately"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Billing errors lead to client dissatisfaction and disputes, and ultimately loss of credibility.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Read this project billing guide to learn about types of project billing and how to bill clients accurately \u2014 step by step.<\/p>\n\n\n\n<ul class=\"wp-block-list key-takeaways\">\n<li>Project billing is the process of setting prices, invoicing, and getting paid for your work.&nbsp;<\/li>\n\n\n\n<li>Multiple types of project billing exist; some of the most common are flat-fee, time-and-materials, and milestone-based billing.<\/li>\n\n\n\n<li>Proper timeline and cost estimation are key aspects of project billing.<\/li>\n\n\n\n<li>Good communication with a client is essential for getting paid for your work.<\/li>\n\n\n\n<li>Accounting software speeds up the billing and invoicing process.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 id=\"what-is-project-billing\" class=\"wp-block-heading\">What is project billing?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Project billing is the process of charging the client for a project.<\/strong> It includes everything from deciding on the billing method and rate to invoicing the client and requesting payment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To bill a client accurately and secure profit, you should ensure the billing rate reflects the work put into the project.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Clockify by CAKE.com lets you track billable and non-billable hours, set billable rates, and log all other expenses.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"768\" height=\"263\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Tracking-billability-in-Clockify.webp\" alt=\"Tracking billability in Clockify\" class=\"wp-image-39936\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Tracking-billability-in-Clockify.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Tracking-billability-in-Clockify-730x250.webp 730w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Tracking-billability-in-Clockify-18x6.webp 18w\" sizes=\"auto, (max-width: 768px) 100vw, 768px\" \/><figcaption class=\"wp-element-caption\">Tracking billability in Clockify<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"custom-btn wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\">Track billable costs with Clockify<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Different billing methods work for different projects \u2014 so let\u2019s go through each project billing type and <a href=\"https:\/\/clockify.me\/blog\/business\/how-to-bill-a-client\/\">how to bill clients accurately<\/a>.<\/p>\n\n\n\n<h2 id=\"types-of-project-billing\" class=\"wp-block-heading\">Types of project billing<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Without an adequate billing type, you\u2019ll likely end up underpricing (or overpricing) your services.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s take a look at some of the most common project billing methods so you can find the one that works for your project.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Project billing type<\/strong><\/th><th><strong>Meaning<\/strong><\/th><th><strong>Pros<\/strong><\/th><th><strong>Cons<\/strong><\/th><\/tr><\/thead><tbody><tr><td>Flat fee<\/td><td>A fixed price is charged for the entire project.<\/td><td>&#8211; Clear expectations (client knows how much they&#8217;ll pay in advance)<br>&#8211; Simplified budgeting<\/td><td>&#8211; Lack of flexibility, as the price is pre-determined (it doesn\u2019t account for any changes as the project progresses)<br>&#8211; Potential revenue loss in case of scope creep<\/td><\/tr><tr><td>Time and materials<\/td><td>The total amount the client pays includes the cost of materials used for the project and billable hours.<\/td><td>&#8211; Minimizes financial risks for service providers<br>&#8211; Adds more flexibility \u2014 no strict budget or time constraints<\/td><td>&#8211; Requires precise time and expense logging<br>&#8211; Causes potential client disputes if the cost of time and materials exceeds their initial expectations<\/td><\/tr><tr><td>Milestone-based billing<\/td><td>The service is paid for in increments after each project milestone is reached.<\/td><td>&#8211; Eliminates the risk of not getting paid at all for a completed project<br>&#8211; Promotes accountability (of both team members and clients)<\/td><td>&#8211; The client and service provider may have disagreements due to not clearly defined milestones<br>&#8211; The client must approve all milestones, which may cause a stalemate<\/td><\/tr><tr><td>Retainer billing<\/td><td>The price is fixed but recurring \u2014 the client usually pays the same amount weekly, monthly, or yearly for as long as the service is being provided.<\/td><td>&#8211; Secures steady revenue for the service provider<br>&#8211; Simplifies billing and reduces administrative work<\/td><td>&#8211; Workload doesn&#8217;t always reflect the price<br>&#8211; Prices are difficult to raise, as they are fixed and recurring<\/td><\/tr><tr><td>Cost-plus<\/td><td>The price includes the cost of materials and a pre-determined amount for profit.<\/td><td>&#8211; Brings flexibility for both the client and service provider, as they can adjust the project scope<br>&#8211; Accounts for profit<\/td><td>&#8211; The client doesn\u2019t know exactly how much they\u2019ll have to pay until the end of the project<br>&#8211; The service provider must meticulously track all expenses<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 id=\"method-1-flat-fee\" class=\"wp-block-heading\">Method #1: Flat fee<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A flat fee is a fixed amount you charge for your project. So, you always charge the same price for this service, regardless of how many hours you put into it. You can <strong>charge a flat fee at the beginning or at the end<\/strong> of the project.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The main advantage of this billing method is that both you and the client know what to expect. They know how much they\u2019ll need to pay up front, and you know precisely how much you\u2019ll earn.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, charging a flat fee can lead to a financial loss if the project is prolonged or resource costs exceed expectations.<\/p>\n\n\n\n<h3 id=\"method-2-time-and-materials\" class=\"wp-block-heading\">Method #2: Time and materials<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">When charging for <a href=\"https:\/\/clockify.me\/learn\/business-management\/time-materials-contract\/\">time and materials<\/a> in projects, you bill your client for a specific service based on the number of hours and resources you\u2019ve put into it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The time-and-materials billing method is riskier for the client in case of scope creep. They may end up paying more than expected if more work needs to be done in the end.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the flip side, you could lose revenue if you don\u2019t properly track time spent and materials used. So, in this case, logging every billable hour and expense is essential.<\/p>\n\n\n\n<h3 id=\"method-3-milestone-based-billing\" class=\"wp-block-heading\">Method #3: Milestone-based billing<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Milestone-based billing has the client pay in increments when predetermined project milestones are reached. In this case, the invoice is sent once a milestone is completed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The founder of Full-Scale Advisors, <a href=\"https:\/\/www.linkedin.com\/in\/whitlockjdev\" target=\"_blank\" rel=\"noreferrer noopener\">Jason Whitlock<\/a>, ensures his project milestones are never vague:<\/p>\n\n\n\n<div class=\"wp-block-group pro-blockquote\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"1200\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jason-Whitlock.webp\" alt=\"Jason Whitlock - The founder of Full-Scale Advisors\" class=\"wp-image-39964\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jason-Whitlock.webp 1200w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jason-Whitlock-300x300.webp 300w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jason-Whitlock-630x630.webp 630w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jason-Whitlock-768x768.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jason-Whitlock-12x12.webp 12w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>\u201cFor example, in a RevOps or GTM project, I don\u2019t want a milestone to simply be \u2018strategy complete\u2019. That\u2019s way too vague. A better milestone might be a completed current-state audit, a mapped sales process, a documented handoff workflow, a CRM field architecture, or an enablement playbook tied to specific success criteria.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Another expert and CEO of Pearl Lemon, <a href=\"https:\/\/www.linkedin.com\/in\/deepakpshukla\" target=\"_blank\" rel=\"noreferrer noopener\">Deepak Shukla<\/a>, explained that he usually doesn\u2019t charge each milestone the same:<\/p>\n\n\n\n<div class=\"wp-block-group pro-blockquote\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"950\" height=\"945\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Deepak-Shukla.webp\" alt=\"Deepak Shukla - CEO of Pearl Lemon\" class=\"wp-image-39963\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Deepak-Shukla.webp 950w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Deepak-Shukla-302x300.webp 302w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Deepak-Shukla-633x630.webp 633w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Deepak-Shukla-768x764.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Deepak-Shukla-12x12.webp 12w\" sizes=\"auto, (max-width: 950px) 100vw, 950px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>\u201cI don&#8217;t split fees evenly. Higher-risk or more labour-intensive phases usually carry a larger percentage of the project value. For example, planning might be 20%, execution 50%, and final delivery 30%. The goal is to align payment with the actual work and risk involved at each stage.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">So, to bill a client using the milestone-based method, create specific milestones and price them based on the amount of work and risk they entail.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Our expert contributor, Jason Whitlock, finds that milestone-based billing promotes accountability. He notes that this is the <strong>greatest benefit<\/strong> of this billing type:<\/p>\n\n\n\n<div class=\"wp-block-group pro-blockquote\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"1200\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jason-Whitlock.webp\" alt=\"Jason Whitlock - The founder of Full-Scale Advisors\" class=\"wp-image-39964\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jason-Whitlock.webp 1200w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jason-Whitlock-300x300.webp 300w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jason-Whitlock-630x630.webp 630w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jason-Whitlock-768x768.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jason-Whitlock-12x12.webp 12w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><em>\u201cThe biggest advantage I see is that billing on milestones creates accountability for both sides. Clients get tangible checkpoints, and me, as the consultant, has to define progress in terms of the completed outcomes rather than pricing with flat project-based or hourly-based engagements.\u201d<\/em><\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Deepak Shukla finds disputes over poorly defined milestones as the <strong>greatest weakness<\/strong>. Deepak says that <em>\u201cdisputes can arise if it&#8217;s not obvious that a goal has been met.\u201d<\/em><\/p>\n\n\n\n<h3 id=\"method-4-retainer-billing\" class=\"wp-block-heading\">Method #4: Retainer billing<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Retainer billing is a billing method frequently used in law firms. It involves charging clients a fixed, recurring price for a service. So, the client pays the same amount on a weekly, monthly, or yearly basis \u2014 as long as the service is being provided.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The advantage of this billing method is that it can give financial stability. However, since it involves charging a fixed price, you may end up doing more work than you get paid for.<\/p>\n\n\n\n<h3 id=\"method-5-cost-plus\" class=\"wp-block-heading\">Method #5: Cost-plus&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Cost-plus is a billing type commonly used in construction. It involves setting a price that accounts for both expenses and profit.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The contractor and client first agree on what will count as a cost. Then, they determine how profit will be calculated. Some options for calculating profit include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Fixed amount<\/li>\n\n\n\n<li>Percentage of the costs<\/li>\n\n\n\n<li>Incentive after specific goals are reached<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The pro of this method is that you won\u2019t lose money, as profit is always taken into account (as long as you plan and calculate everything properly). However, the disadvantage is that you may underestimate how much profit you could achieve and miss the opportunity to maximize your revenue.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">\ud83d\udca1<strong>CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you want to learn how to easily keep track of project expenses, check out this guide:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/clockify.me\/blog\/managing-tasks\/expense-tracking\/\">How to Keep Track of Expenses Accurately<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h2 id=\"5-stages-of-project-billing\" class=\"wp-block-heading\">5 stages of project billing<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Project billing can be broken down into 5 main stages to keep in mind.<\/p>\n\n\n\n<h3 id=\"1-project-planning\" class=\"wp-block-heading\">#1: Project planning&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The first stage of project billing involves project and resource planning. Here\u2019s a quick breakdown of the steps to creating a project plan:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Define the project scope<\/strong> \u2014 include boundaries, aims, and requirements. To avoid surprises, you should clarify with the client what work will go into the project.<\/li>\n\n\n\n<li><a href=\"https:\/\/clockify.me\/blog\/productivity\/break-project-into-tasks\/\"><strong>Break the project down into tasks<\/strong><\/a> \u2014 this makes it easier to manage and lets you determine who will work on what.<\/li>\n\n\n\n<li><a href=\"https:\/\/clockify.me\/blog\/business\/make-precise-time-estimates\/\"><strong>Estimate project duration<\/strong><\/a> \u2014 set accurate deadlines and estimate costs.<\/li>\n\n\n\n<li><strong>Establish a budget<\/strong> \u2014 do this based on the estimated costs of resources, including staff, materials, and tools.<\/li>\n\n\n\n<li><strong>Allocate resources<\/strong> \u2014 assign tasks to teams and distribute other resources, including financial and technological.<\/li>\n<\/ul>\n\n\n\n<p class=\"custom-btn wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\">Track hours on tasks in Clockify<\/a><\/p>\n\n\n\n<h3 id=\"2-setting-and-negotiating-the-billing-rate\" class=\"wp-block-heading\">#2: Setting and negotiating the billing rate<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The next stage is setting the billing rate: Your billable rate should be high enough to cover expenses and secure a profit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s one way to calculate a fair and sustainable rate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First, <strong>calculate all costs<\/strong> \u2014 labor costs, materials, and other expenses. Labor cost is the total you pay your team for the project.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Once you know your total costs, <strong>determine your target delivery margin<\/strong>. The delivery margin is the profit remaining after you\u2019ve covered all costs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s say you aim for a 60% delivery margin, and your delivery cost is $35 per hour. Here\u2019s how you\u2019d <strong>calculate your billing rate<\/strong>:<\/p>\n\n\n\n<p class=\"has-background wp-block-paragraph\" style=\"background-color:#e1f5fe\"><em>Delivery cost \/ (1 &#8211; Target delivery margin) = <\/em><strong><em>Hourly billing rate<\/em><\/strong><\/p>\n\n\n\n<p class=\"has-background wp-block-paragraph\" style=\"background-color:#e1f5fe\"><em>$35 \/ (1 &#8211; 0.60) =<\/em><strong><em> $87.5 per hour<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To ensure you set competitive prices while remaining profitable, learn about <a href=\"https:\/\/clockify.me\/average-hourly-rates\">average hourly rates<\/a> in your field. For example, the average hourly rate for a data scientist is $40.84, whereas the average hourly rate for a media buyer is $26.13.<\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">\ud83d\udca1<strong>CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Unsure how to determine and calculate your hourly rate? You can use our free hourly rate calculator:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/clockify.me\/hourly-rate-calculator\">Free Hourly Rate Calculator<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h3 id=\"3-project-time-and-expense-tracking\" class=\"wp-block-heading\">#3: Project time and expense tracking<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">To bill a client accurately for a project, you need to log all <a href=\"https:\/\/clockify.me\/how-to-calculate-billable-hours\">billable time<\/a> and expenses. As for the <a href=\"https:\/\/clockify.me\/time-tracking-methods\">tracking method<\/a>, find the one that works best for your business. The most common options include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Pen and paper <\/strong>\u2014 this method involves writing down time entries on paper.<\/li>\n\n\n\n<li><strong>Honor method <\/strong>\u2014 this method involves employees reporting the time they estimate they worked on a project to their manager.<\/li>\n\n\n\n<li><strong>Spreadsheets <\/strong>\u2014 this method involves manually entering work start and end times in a spreadsheet (typically Excel or Google Sheets).<\/li>\n\n\n\n<li><strong>Software <\/strong>\u2014 this method involves using an app to track hours automatically (e.g., timer mode) or manually (e.g., timesheet mode).<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Time-and-billing apps, such as <a href=\"https:\/\/clockify.me\/\">Clockify<\/a>, calculate the total amount of billable hours for you. Based on the billable rates you set, you can even see the total billable cost.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"978\" height=\"630\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Clockify-summary-report-showing-billable-hours-and-amount-978x630.webp\" alt=\"Clockify summary report showing billable hours and amount\" class=\"wp-image-39937\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Clockify-summary-report-showing-billable-hours-and-amount-978x630.webp 978w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Clockify-summary-report-showing-billable-hours-and-amount-466x300.webp 466w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Clockify-summary-report-showing-billable-hours-and-amount-768x495.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Clockify-summary-report-showing-billable-hours-and-amount-18x12.webp 18w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Clockify-summary-report-showing-billable-hours-and-amount.webp 1115w\" sizes=\"auto, (max-width: 978px) 100vw, 978px\" \/><figcaption class=\"wp-element-caption\">Clockify Summary report showing billable hours and amount<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">If you don\u2019t want all team members to see all tracked hours and expenses, you can manage their access in Settings. This means you can <a href=\"https:\/\/clockify.me\/help\/administration\/hide-time\">hide tracked time and expenses<\/a> from users, so they\u2019d only see their own tracked data.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tracking project time is a good idea even if you don\u2019t bill by the hour. It allows you to estimate how much time future projects will take and set your rates accordingly.<\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\"><strong>\ud83d\udca1 CLOCKIFY PRO TIP&nbsp;<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Wondering why tracking time is important? Find out in this article:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/clockify.me\/blog\/business\/track-hours-worked\/\">Why You Should Keep Track of Work Hours (Both as an Employer and an Employee)<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h3 id=\"4-project-invoicing\" class=\"wp-block-heading\">#4: Project invoicing<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Once you have finished the project (or a project milestone), you can invoice your client. Your project invoice should contain:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Client name and address<\/li>\n\n\n\n<li>Services provided<\/li>\n\n\n\n<li>Payment deadline<\/li>\n\n\n\n<li>Amount to be paid<\/li>\n\n\n\n<li>Any other details you find relevant<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">You can make your own invoice, use an <a href=\"https:\/\/clockify.me\/invoice-templates\">invoice template<\/a>, or find high-quality <a href=\"https:\/\/clockify.me\/blog\/productivity\/free-invoicing-apps\/\">invoicing software<\/a> that can do the work for you.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you use <a href=\"https:\/\/clockify.me\/time-billing-software\">time tracking and invoicing software<\/a> like Clockify, you can import tracked billable time and expenses directly into the invoice.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"911\" height=\"630\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Invoicing-in-Clockify-911x630.webp\" alt=\"Invoicing in Clockify\" class=\"wp-image-39938\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Invoicing-in-Clockify-911x630.webp 911w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Invoicing-in-Clockify-434x300.webp 434w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Invoicing-in-Clockify-768x531.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Invoicing-in-Clockify-18x12.webp 18w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Invoicing-in-Clockify.webp 1200w\" sizes=\"auto, (max-width: 911px) 100vw, 911px\" \/><figcaption class=\"wp-element-caption\">Invoicing in Clockify<\/figcaption><\/figure>\n<\/div>\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\"><strong>\ud83d\udca1 CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you need a more detailed, step-by-step guide on how to invoice clients, check out this article:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/clockify.me\/blog\/business\/professional-invoices-tips\/\">3 Steps to Professional Client Invoices that Encourage Payment<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h3 id=\"5-collecting-payment\" class=\"wp-block-heading\">#5: Collecting payment<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">After you\u2019ve sent out the invoice with details on how your client can pay you, you can expect your payment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Using Clockify to generate your invoices also lets you send the invoice email through the app. Clockify has a range of email templates you can choose from \u2014 sparing you from drafting up the email text each time you need to send an invoice. You\u2019ll also have the option to modify the email text before it\u2019s sent.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"329\" height=\"630\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Sending-an-invoice-email-through-Clockify-329x630.webp\" alt=\"Sending an invoice email through Clockify\" class=\"wp-image-39939\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Sending-an-invoice-email-through-Clockify-329x630.webp 329w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Sending-an-invoice-email-through-Clockify-157x300.webp 157w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Sending-an-invoice-email-through-Clockify-6x12.webp 6w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Sending-an-invoice-email-through-Clockify.webp 535w\" sizes=\"auto, (max-width: 329px) 100vw, 329px\" \/><figcaption class=\"wp-element-caption\">Sending an invoice email through Clockify<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">If you realize all payment deadlines have been breached and you still haven\u2019t been paid, you\u2019ll need to push matters forward yourself.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are some invoice late-fee wording tips you can try when you want to politely <a href=\"https:\/\/clockify.me\/blog\/business\/ask-for-payment\/\">ask the client for payment<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First, <strong>send a firm (but friendly) email asking for payment <\/strong>\u2014 be straightforward but friendly about payment details (the amount, the payment method, etc.).<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"660\" height=\"549\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/An-example-of-a-reminder-email.webp\" alt=\"An example of a reminder email\" class=\"wp-image-39940\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/An-example-of-a-reminder-email.webp 660w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/An-example-of-a-reminder-email-361x300.webp 361w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/An-example-of-a-reminder-email-14x12.webp 14w\" sizes=\"auto, (max-width: 660px) 100vw, 660px\" \/><figcaption class=\"wp-element-caption\">An example of a reminder email<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">Secondly, <strong>send a <\/strong><a href=\"https:\/\/www.saleshandy.com\/blog\/how-to-write-a-follow-up-email\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>follow-up email<\/strong><\/a> after 2 weeks if you receive no response to the first email \u2014 be firmer in this follow-up email, but retain a friendly undertone. You can also charge an extra fee if your client doesn\u2019t pay you before a certain deadline.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"665\" height=\"575\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/An-example-of-a-follow-up-email.webp\" alt=\"An example of a follow-up email\" class=\"wp-image-39941\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/An-example-of-a-follow-up-email.webp 665w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/An-example-of-a-follow-up-email-347x300.webp 347w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/An-example-of-a-follow-up-email-14x12.webp 14w\" sizes=\"auto, (max-width: 665px) 100vw, 665px\" \/><figcaption class=\"wp-element-caption\">An example of a follow-up email<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">If you don\u2019t receive a response \u2014 <strong>make a phone call. <\/strong>Remind the client of your payment agreement (including the due date and late-fee details) and make further payment arrangements.<\/p>\n\n\n\n<h2 id=\"what-are-the-challenges-of-project-billing\" class=\"wp-block-heading\">What are the challenges of project billing?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Project billing is complex because it involves setting pricing and explaining your costs for each project separately.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Small businesses across industries \u2014 from IT companies to law firms \u2014 face various challenges when charging for their services. Here are the most common ones.&nbsp;<\/p>\n\n\n\n<h3 id=\"challenge-1-the-complexity-of-billing-per-project\" class=\"wp-block-heading\">Challenge #1: The complexity of billing per project<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Billing for your work involves much more than estimating the time you\u2019ll spend on a project and charging for that time. That is why having a separate billing process for every project can be complicated and time-consuming.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Finance specialist <a href=\"https:\/\/www.linkedin.com\/in\/kevin-huffman-672b472b1\/\" target=\"_blank\" rel=\"noreferrer noopener\">Kevin Huffman<\/a> believes the right system and a good billing tool help automate the billing process and avoid errors:<\/p>\n\n\n\n<div class=\"wp-block-group pro-blockquote\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Kevin-Huffman.webp\" alt=\"Kevin Huffman - Finance specialist\" class=\"wp-image-39966\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Kevin-Huffman.webp 150w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Kevin-Huffman-12x12.webp 12w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201c<em>Project billing processes could be greatly enhanced using an integrated project management and accounting system. This would allow time and expenses to be tracked \u2018on the fly\u2019, so everything is billed accurately in a transparent way.<\/em>\u201d<\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 id=\"challenge-2-charging-for-operating-costs\" class=\"wp-block-heading\">Challenge #2: Charging for operating costs<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Operating costs that aren\u2019t directly related to the specific project you\u2019re working on also have to be accounted for. Administrative fees, rent and utilities, training, professional software, and subscriptions are part of your business operations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you don\u2019t learn how to properly include them in your service rates, you\u2019ll end up losing money. So, you need to set up a system to allocate operating expenses across your projects and include them in the cost of your services.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Considering the complexity of billing per project and accounting for operating costs, finance specialist Huffman suggests \u201c<em>performing regular internal audits of the billing processes.\u201d<\/em> This way, you\u2019ll perfect a billing system that accurately predicts your project expenses and accounts for the operating costs.&nbsp;<\/p>\n\n\n\n<p class=\"custom-btn wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\">Track time and costs with Clockify<\/a><\/p>\n\n\n\n<h3 id=\"challenge-3-scope-creep\" class=\"wp-block-heading\">Challenge #3: Scope creep<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Sometimes, project tasks and goals change and expand beyond the original plan. This is known as scope creep.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As the project scope expands, the project costs will likely increase. As soon as you realize you need more resources to cover project costs, you should come up with a new <a href=\"https:\/\/clockify.me\/project-budgeting\">project budget<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If scope creep happened due to the client\u2019s additional requests, you also need to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Communicate the changes to the client on time<\/strong> \u2014 contact the client in a direct, prompt, and straightforward manner as soon as you realize you\u2019ll need a bigger budget.<\/li>\n\n\n\n<li><strong>Provide proof of the changes<\/strong> \u2014 clarify what items you need more money for, provide specific reasons and proof.<\/li>\n\n\n\n<li><strong>Document all changes<\/strong> \u2014 create a new budget agreement that includes the new pricing.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If scope creep occurs due to poor planning on your part, you may end up losing revenue.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To minimize the consequences, you\u2019ll need to revisit your plan. For example, use a <a href=\"https:\/\/uwaterloo.ca\/vpaf-project-management-office\/methodology\/project-management\/planning\/project-schedule\/schedule-compression\" target=\"_blank\" rel=\"noreferrer noopener\">project schedule compression technique<\/a> to avoid missing the deadline, such as fast tracking or project crashing. Fast tracking involves identifying what tasks can be performed simultaneously, while project crashing includes adding more resources.<\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\"><strong>\ud83d\udca1 CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you wonder what the best strategies are for avoiding cost overruns, check out this article:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/clockify.me\/blog\/business\/cost-overrun\/\">Cost Overrun: Causes, Warning Signs &amp; How To Prevent It<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h3 id=\"challenge-4-accounting-for-unpredictable-costs\" class=\"wp-block-heading\">Challenge #4: Accounting for unpredictable costs<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Unpredictable costs during a project affect both you and your client.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re charging on a time-and-materials basis, additional expenses or time spent on a project directly affect the final cost of services. In case the final cost exceeds the client\u2019s budget, they may refuse to reimburse you for the additional expenses that occurred.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Inversely, when you\u2019re charging a fixed fee, any additional expenses are on you.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On the upside, by maintaining clear communication and explaining the unpredictable circumstances to the client, you may be able to agree on a new budget that reflects the changes.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">CEO of Venture Smarter, <a href=\"https:\/\/www.linkedin.com\/in\/jonathan-morgan-6a8098289\/\" target=\"_blank\" rel=\"noreferrer noopener\">Jonathan Morgan<\/a>, believes thorough project assessment mitigates the issue of unpredictable costs:&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-group pro-blockquote\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jonathan-Morgan.webp\" alt=\"Jonathan Morgan - CEO of Venture Smarter\" class=\"wp-image-39965\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jonathan-Morgan.webp 150w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jonathan-Morgan-12x12.webp 12w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201c<em>Sometimes, unforeseen obstacles arise, causing delays and increased expenses. To tackle this, it\u2019s essential to invest time in a comprehensive project assessment before providing a quote. Break down the project into tasks, evaluate potential risks, and incorporate buffers for unforeseen circumstances.<\/em>\u201d<\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 id=\"5-tips-for-improved-project-billing\" class=\"wp-block-heading\">5 tips for improved project billing<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Looking to perfect the billing process and avoid potential misunderstandings? Check out these 5 tips for improved project billing.&nbsp;<\/p>\n\n\n\n<h3 id=\"tip-1-establish-the-terms-upfront\" class=\"wp-block-heading\">Tip #1: Establish the terms upfront<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Every aspect of billing and invoicing should be agreed upon with the client before you start a project. This ensures both parties have a clear understanding of what\u2019s expected of them regarding deliverables and pricing.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Billing aspects you need to agree on before the project starts include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Pricing<\/li>\n\n\n\n<li>Type of billing<\/li>\n\n\n\n<li>Payment method<\/li>\n\n\n\n<li>Timelines<\/li>\n\n\n\n<li>Number of installments and their dates (if applicable)<\/li>\n\n\n\n<li>Possible penalties for late payments<\/li>\n<\/ul>\n\n\n\n<h3 id=\"tip-2-sign-an-agreement\" class=\"wp-block-heading\">Tip #2: Sign an agreement<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Signing a contract with a client ensures you have records of everything you agreed on. This provides legal protection in case any issues arise.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Furthermore, a client is more likely to honor their obligations when a written agreement is in place, as it serves as evidence of their commitments.<\/p>\n\n\n\n<h3 id=\"tip-3-set-realistic-timelines-and-expectations\" class=\"wp-block-heading\">Tip #3: Set realistic timelines and expectations<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Learning how to properly estimate your projects is key to getting paid.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The inability to deliver on your promises makes you look unprofessional and could cause frustration for the client. This may result in their refusal to pay for your services.<\/p>\n\n\n\n<h3 id=\"tip-4-maintain-clear-communication\" class=\"wp-block-heading\">Tip #4: Maintain clear communication<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Clear communication goes a long way in ensuring you bill your client and get paid properly.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For starters, make sure the client understands every aspect of the project\u2019s billing.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Then, if you encounter any issues, inform your client immediately. Don\u2019t make any changes to the process and the pricing before getting the client\u2019s approval.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Expert contributor Morgan highlights that proactive communication leads to transparent and fair billing:&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-group pro-blockquote\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"150\" height=\"150\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jonathan-Morgan.webp\" alt=\"Jonathan Morgan - CEO of Venture Smarter\" class=\"wp-image-39965\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jonathan-Morgan.webp 150w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Jonathan-Morgan-12x12.webp 12w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/figure>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201c<em>Regularly update clients on the project\u2019s progress, discuss any proposed changes, and agree upon additional costs before implementing them. This proactive approach helps manage expectations and ensures billing remains transparent and fair.<\/em>\u201d<\/p>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">\n<div class=\"banner banner-dark clockify-gradient-bundle\">\n    <div class=\"banner-text lg:pr-[6rem]\">\n        <span class=\"h4 text-lg translation-block mb-0\">Productivity Suite<\/span>\n        <p class=\"translation-block mt-1 mb-3\">For 53% off, get Clockify for tracking billable hours, Plaky for project management, and Pumble for internal communication.<\/p>\n\n        <div class=\"banner-buttons d-flex gap-4 align-items-center translation-block justify-content-center justify-content-sm-start\">\n            <a class=\"bg-white rounded px-3 py-1 text-gray-dark\" href=\"https:\/\/account.cake.com\/signup\" target=\"_blank\">Sign up<\/a>\n\n                            <a class=\"button-2\" href=\"https:\/\/cake.com\/bundle\" target=\"_blank\">Get CAKE.com Bundle<\/a>\n                    <\/div>\n    <\/div>\n\n    <div class=\"banner-image banner-image-bottom \">\n        <picture>\n            <source srcset=\"https:\/\/clockify.me\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/clockify\/bundle@2x.png 2x\" alt=\"Illustration\"  media=\"(min-width: 1022px)\" \/>\n            <img decoding=\"async\" src=\"https:\/\/clockify.me\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/clockify\/bundle.png\"  alt=\"Illustration\" \/>\n        <\/picture>\n    <\/div>\n<\/div>\n    <\/p>\n\n\n\n<h3 id=\"tip-5-consult-a-legal-expert\" class=\"wp-block-heading\">Tip #5: Consult a legal expert<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A legal expert can help you draft a contract to sign with your clients. Moreover, they can assist in determining possible penalties for late payments and in disputing any issues that may arise.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In addition, they can help you file your taxes, which can be a <a href=\"https:\/\/clockify.me\/blog\/business\/pay-contractors-freelancers\/\">complicated process for 1099 contractors<\/a>. Lastly, if you\u2019re working with international clients, you could benefit from legal advice on cross-border billing.&nbsp;<\/p>\n\n\n\n<h2 id=\"how-to-automate-project-billing-with-clockify-by-cake-com\" class=\"wp-block-heading\">How to automate project billing with Clockify by CAKE.com<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Clockify is a time tracking and invoicing app that simplifies <a href=\"https:\/\/clockify.me\/client-billing\">client billing<\/a>. Here\u2019s how you can use Clockify for project-based billing.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"How Clockify helps you bill clients faster (2025)\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/9_Qmjd_uxTo?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>First, track billable hours and expenses. <\/strong>You and your team can choose how you want to track time \u2014 automatically or manually.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you want your time automatically tracked, simply select your project and start the Timer. To mark hours as billable, click the dollar sign in the Timer.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1044\" height=\"89\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Timer-in-Clockify.webp\" alt=\"Timer in Clockify\" class=\"wp-image-39942\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Timer-in-Clockify.webp 1044w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Timer-in-Clockify-730x62.webp 730w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Timer-in-Clockify-768x65.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Timer-in-Clockify-18x2.webp 18w\" sizes=\"auto, (max-width: 1044px) 100vw, 1044px\" \/><figcaption class=\"wp-element-caption\">Timer in Clockify<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">If you prefer to track hours manually, you can use timesheets and quickly add hours for the entire week.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"875\" height=\"630\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Timesheets-in-Clockify-875x630.webp\" alt=\"Timesheets in Clockify\" class=\"wp-image-39943\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Timesheets-in-Clockify-875x630.webp 875w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Timesheets-in-Clockify-417x300.webp 417w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Timesheets-in-Clockify-768x553.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Timesheets-in-Clockify-18x12.webp 18w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Timesheets-in-Clockify.webp 1150w\" sizes=\"auto, (max-width: 875px) 100vw, 875px\" \/><figcaption class=\"wp-element-caption\">Timesheets in Clockify<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">You can also easily categorize and log your expenses. Once you create expense categories, your team can add all expenses associated with your project. They can also attach a receipt to the expense.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"487\" height=\"630\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Creating-an-expense-in-Clockify-487x630.webp\" alt=\"Creating an expense in Clockify\" class=\"wp-image-39944\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Creating-an-expense-in-Clockify-487x630.webp 487w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Creating-an-expense-in-Clockify-232x300.webp 232w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Creating-an-expense-in-Clockify-768x993.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Creating-an-expense-in-Clockify-9x12.webp 9w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Creating-an-expense-in-Clockify.webp 792w\" sizes=\"auto, (max-width: 487px) 100vw, 487px\" \/><figcaption class=\"wp-element-caption\">Creating an expense in Clockify<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><strong>Then, import billable time and expenses into the invoice. <\/strong>When importing time and expenses, Clockify lets you choose which information to display on the invoice.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For billable hours, this includes project, task, description, tags, date, and user. Clockify will calculate the total amount to be paid for you.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"317\" height=\"630\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Importing-time-and-expenses-into-a-Clockify-invoice-317x630.webp\" alt=\"Importing time and expenses into a Clockify invoice\" class=\"wp-image-39945\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Importing-time-and-expenses-into-a-Clockify-invoice-317x630.webp 317w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Importing-time-and-expenses-into-a-Clockify-invoice-151x300.webp 151w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Importing-time-and-expenses-into-a-Clockify-invoice-6x12.webp 6w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Importing-time-and-expenses-into-a-Clockify-invoice.webp 447w\" sizes=\"auto, (max-width: 317px) 100vw, 317px\" \/><figcaption class=\"wp-element-caption\">Importing time and expenses into a Clockify invoice<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">To further customize your invoice in Clockify, you can use the <a href=\"https:\/\/marketplace.cake.com\/addons\/7dca794a-4fbe-44b3-9a15-af39d36c0179\" target=\"_blank\" rel=\"noreferrer noopener\">Better Invoices add-on<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>After that, you can send the invoice to your client. <\/strong>Clockify lets you send the invoice you generated easily via email. To do this, click the <em>Send invoice<\/em> button.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"904\" height=\"630\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Clockifys-send-invoice-button-904x630.webp\" alt=\"Clockify\u2019s send invoice button\" class=\"wp-image-39946\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Clockifys-send-invoice-button-904x630.webp 904w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Clockifys-send-invoice-button-430x300.webp 430w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Clockifys-send-invoice-button-768x535.webp 768w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Clockifys-send-invoice-button-18x12.webp 18w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Clockifys-send-invoice-button.webp 1268w\" sizes=\"auto, (max-width: 904px) 100vw, 904px\" \/><figcaption class=\"wp-element-caption\">Clockify\u2019s send invoice button<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><strong>Finally, mark the invoice as paid. <\/strong>To keep up with client payments, you can use Clockify statuses. Clockify invoice statuses include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Unsent<\/li>\n\n\n\n<li>Paid<\/li>\n\n\n\n<li>Partially paid<\/li>\n\n\n\n<li>Void<\/li>\n\n\n\n<li>Overdue<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"713\" height=\"392\" src=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Invoice-statuses-in-Clockify.webp\" alt=\"Invoice statuses in Clockify\" class=\"wp-image-39947\" srcset=\"https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Invoice-statuses-in-Clockify.webp 713w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Invoice-statuses-in-Clockify-546x300.webp 546w, https:\/\/clockify.me\/blog\/wp-content\/uploads\/2026\/06\/Invoice-statuses-in-Clockify-18x10.webp 18w\" sizes=\"auto, (max-width: 713px) 100vw, 713px\" \/><figcaption class=\"wp-element-caption\">Invoice statuses in Clockify<\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">You can even <a href=\"https:\/\/clockify.me\/help\/integrations-and-add-ons\/clockify-xero\">send invoices generated in Clockify to Xero<\/a>. And once an invoice is paid, the status automatically changes in Clockify.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\n<div class=\"banner banner-light clockify-gradient-templates\">\n    <div class=\"banner-text lg:pr-[6rem]\">\n        <span class=\"h4 text-lg translation-block mb-0\">Powerful Invoicing Tool<\/span>\n        <p class=\"translation-block mt-1 mb-3\">Clockify lets you track billable time and expenses, set billable rates, and generate invoices by importing tracked data.<\/p>\n\n        <div class=\"banner-buttons d-flex gap-4 align-items-center translation-block justify-content-center justify-content-sm-start\">\n            <a class=\"bg-white rounded px-3 py-1 text-gray-dark\" href=\"https:\/\/app.clockify.me\/en\/signup\" target=\"_blank\">Sign up<\/a>\n\n                            <a class=\"button-2\" href=\"https:\/\/clockify.me\/features\/invoicing\" target=\"_blank\">Learn more<\/a>\n                    <\/div>\n    <\/div>\n\n    <div class=\"banner-image banner-image-middle \">\n        <picture>\n            <source srcset=\"https:\/\/clockify.me\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/clockify\/templates@2x.png 2x\" alt=\"Illustration\"  media=\"(min-width: 1022px)\" \/>\n            <img decoding=\"async\" src=\"https:\/\/clockify.me\/blog\/wp-content\/themes\/cake-blog\/theme\/images\/banners\/clockify\/templates.png\"  alt=\"Illustration\" \/>\n        <\/picture>\n    <\/div>\n<\/div>\n    <\/p>\n\n\n\n<h2 id=\"faqs-about-project-billing\" class=\"wp-block-heading\">FAQs about project billing<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Want to learn even more about different aspects of billing for a project? Here are answers to some frequently asked questions about project billing.<\/p>\n\n\n\n<h3 id=\"what-is-billing-a-project\" class=\"wp-block-heading\">What is billing a project?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Billing a project (project billing) is the process of setting rates, invoicing, and getting paid for a project you worked on.<\/p>\n\n\n\n<h3 id=\"how-do-i-bill-a-project\" class=\"wp-block-heading\">How do I bill a project?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">To bill a project accurately, create a detailed project plan first. This includes everything from determining what aspects of the project are billable and establishing a project timeline to creating the budget and assigning tasks to team members. After the project (or project milestone) is done, you can invoice your client.<\/p>\n\n\n\n<h3 id=\"whats-the-difference-between-billing-and-invoicing\" class=\"wp-block-heading\">What\u2019s the difference between billing and invoicing?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Billing involves all the steps from setting the billing rate to collecting the payment. Invoicing is one step in billing and involves creating and sending an invoice to the client. The invoice should include the services provided, the payment due date, the amount, and other details.<\/p>\n\n\n\n<div class=\"wp-block-group pro-tip\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<p class=\"wp-block-paragraph\">\ud83d\udca1 <strong>CLOCKIFY PRO TIP<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Wondering how to simplify and automate client billing? Refer to the article below:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/clockify.me\/blog\/business\/clockify-client-invoicing\/\">Simplify Billing and Automate Client Invoicing With Clockify<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<h3 id=\"what-are-the-3-types-of-billing\" class=\"wp-block-heading\">What are the 3 types of billing?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The 3 common types of billing include flat fee, time and materials, and retainer. Charging a flat fee means setting a fixed amount to be paid for the project, regardless of how many hours your team ends up working on it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Conversely, the time-and-materials billing method accounts for the number of hours worked on the project and the cost of materials used.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Retainer billing is more similar to the flat fee method, as it also involves a fixed amount. However, in this case, the same amount is billed on a recurring basis (e.g., weekly, monthly, or yearly).<\/p>\n\n\n\n<h3 id=\"do-project-managers-do-billing\" class=\"wp-block-heading\">Do project managers do billing?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Project managers may handle aspects of project billing, such as approving timesheets and billable expenses. Sending invoices is usually not a project manager\u2019s responsibility, as this is typically handled by the accounting staff.<\/p>\n\n\n\n<h3 id=\"how-to-enable-billing-for-a-project\" class=\"wp-block-heading\">How to enable billing for a project?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">To enable billing in a time-and-billing tool like Clockify, set billable rates and enable invoicing in Workspace settings. Then enter the client\u2019s information and add the client to your project.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Once you track billable hours on the projects associated with your client, you\u2019ll get all relevant billing data \u2014 hours worked on the billable projects and the amount your client needs to pay.<\/p>\n\n\n\n<p class=\"custom-btn wp-block-paragraph\"><a href=\"https:\/\/app.clockify.me\/en\/signup\" type=\"link\" id=\"https:\/\/app.clockify.me\/en\/signup\">Start billing projects in Clockify<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn what project billing is, what types exist, main challenges, billing improvement tips, and how to bill clients accurately.<\/p>\n","protected":false},"author":3,"featured_media":39935,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-2759","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"acf":[],"_links":{"self":[{"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/posts\/2759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/comments?post=2759"}],"version-history":[{"count":90,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/posts\/2759\/revisions"}],"predecessor-version":[{"id":40203,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/posts\/2759\/revisions\/40203"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/media\/39935"}],"wp:attachment":[{"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/media?parent=2759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/categories?post=2759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/clockify.me\/blog\/wp-json\/wp\/v2\/tags?post=2759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}