Question 1

Should I charge clients a deposit before starting consulting work?

Accepted Answer

Yes, a deposit is standard practice for project-based consulting engagements. Most consultants request 25 to 50 percent upfront, especially with new clients. This covers initial research and preparation time and signals client commitment. For ongoing retainers, payment is typically due at the start of each period rather than after services are rendered.

Question 2

What is the difference between billing hourly and a flat project fee?

Accepted Answer

Hourly billing suits open-ended or exploratory engagements where the scope may change. You get paid for every hour worked, but clients may feel uncertainty about total cost. Flat fees are better for well-defined deliverables because both sides know the total upfront. Many experienced consultants prefer flat fees because they reward efficiency and are easier for clients to approve in a budget.

Question 3

How do I handle reimbursable expenses on a consulting invoice?

Accepted Answer

List reimbursable expenses as separate line items below your professional fees. Include the expense type, date incurred, and the exact amount. If your contract requires receipts, note that they are attached or available on request. Avoid marking up expenses unless your contract explicitly permits it. Keep expenses in a separate section so the client can clearly see your fee versus costs passed through.

Question 4

How long should my payment terms be for consulting invoices?

Accepted Answer

Net 15 or Net 30 is the norm for independent consultants working with business clients. Shorter terms (Net 7 or due on receipt) work well for smaller, one-off engagements. For large corporate clients with accounts payable departments, Net 30 is usually the minimum they will accept. Whatever terms you choose, state them clearly on every invoice and enforce them consistently to avoid late payments becoming the default.

Question 5

Can I charge interest on late consulting invoices?

Accepted Answer

Yes, and you should specify this in your contract and on the invoice itself. A common approach is 1.5 percent per month on the outstanding balance after the due date. Some consultants add a flat late fee instead. The key is to state the policy upfront so clients are not surprised. In practice, many consultants waive late fees for good long-term clients but having the clause in writing accelerates payment.

Question 6

What tax information should I include on a consulting invoice?

Accepted Answer

If you are registered for sales tax, VAT, or GST, include your registration number and the applicable tax rate on every invoice. In the US, most consulting services are not subject to sales tax, but regulations vary by state and service type. If your client is in another country, research whether a reverse charge or withholding tax applies. For US clients who pay you more than $600 per year, they will need your details to issue a 1099, so include your EIN or SSN on your W-9, not on the invoice itself.

Question 7

Can I use this template for free?

Accepted Answer

Yes. Tidybill's free plan lets you create up to 5 invoices per month at no cost, with no credit card required. You can use the Consultant invoice template straight away after signing up.

Service	Typical Rate	Unit
Strategy Consulting	$150 - $500	per hour
Monthly Retainer	$2,000 - $10,000	per month
Workshop Facilitation	$1,500 - $5,000	per day
Research and Analysis Report	$500 - $3,000	per project
Executive Coaching Session	$200 - $600	per hour
Travel Expenses (reimbursable)	At cost	per trip

Free Consultant Invoice Template

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