Terms/Policies/Invoicing for Hourly & Per Project Clients - Virtual Assistant Forums

#1 (**permalink**) 06-18-2008

For my hourly and per project clients, I have the following terms set-up:

Hours are billed in 15-minute increments with a one-hour minimum required, unless otherwise specified; a 50% deposit on the signed contract agreement/quotation is required prior to commencement of work with the remainder to be paid in full prior to delivery of the completed project.

I am curious to know what type of policies you have set up for similiar clients. Also, I have noticed through some other threads that a lot of you invoice twice a month. How would you handle the invoicing if you DO require that the balance be paid in full PRIOR to delivery of a completed project? You wouldn't have "set terms" (i.e. Net 15) per se, rather invoicing as you go. I am basically looking for the most efficient way to handle my invoicing.

Thanks!

Amy B. Emerick
Access Office Services

Donna · #2 (**permalink**) 06-18-2008

I pretty much handle the same way you do, but to keep the cash flow going I invoice some clients at the end of the month and some mid month. I do that with retainers and project/hourly clients.

Donna

Rebecka Melson · #3 (**permalink**) 06-18-2008

For regularly scheduled work like bookkeeping, I start new clients out on twice a month billing on the 1st and 15th, eventually I switch them over to once a month billing. For project clients I bill at the end of each project. I always charge a deposit for new clients.

zuprodva · #4 (**permalink**) 07-02-2008

Dear VAs, Hi.

I'm happy reading your posts, because I'm just starting my VA service and really need terms and refenrences of experienced persons like you.

I just got inspired.

NDZULO

VirtualLorri · #5 (**permalink**) 07-02-2008

I don't do hourly or project work; all my clients are on retainer with payments due on the first of the month. If they exceed their retainer hours, they receive a second invoice at the end of the month for the additional time. I used to have an hourly rate, but soon learned that clients who chose that route weren't invested in the relationship and it wasn't benefiting either of us. There are many different ways to structure your billing and payment policies - just research the threads and you will find what others do and can create something that just suits you.

Warmly,

Lorri

virtual writing · #6 (**permalink**) 07-02-2008

Amy, if I understand correctly, you're asking about policy for jobs that require payment before final delivery. These are, indeed, different from long-term, retainer, or hourly payments. If you don't know the client, and it's your first job for them, I would definitely advise collecting balance due before final submission. You'll probably have to do this through PayPal or another website like it.

York Signature Assistance Inc · #7 (**permalink**) 08-24-2008

Hi everyone!

As I am working on my website I am also tweaking a retainer agreement that I purchased. Just to make sure that I understand, when you bill in 15 minute increments with a one hour minimum, if the task takes about one hour and fifteen minutes, are you charging the one hour and fifteen minutes only? Also, if another task takes 25 minutes to complete, are you billing them for the full hour?

For retainer agreements, is it normal to have a client sign a one year agreement, retaining a certain amount of hours per month? I was going to have my retainers set at 10 minimum, 20, 30, 40 hrs per month and charge at the beginning of the month for that month's service.

Am I on the right page?

I plan to use retainer agreements only; however, there may be times when I will accept project by project work as well.

Any and all advice will be greatly appreciated.

Sincerely,
sy(Sheila)

The Write Exec · #8 (**permalink**) 09-01-2008

Thanks for all of the info. I am trying to decide on how to invoice clients as well. You all have certainly helped.

PorterWood · #9 (**permalink**) 01-31-2009

I'm trying to create a payment terms agreement...? Everyone's input is so very helpful. thank you!

JoCarole · #10 (**permalink**) 02-02-2009

Wow, really good information here. I would think that one hour and 15 minutes would be billed as that, if the billing is being done in 15 min increments.. and for 25 minutes, I would bill 30 minutes. Anyone else think this way?
Jo-Carole