Invoicing Clients
Generate professional invoices directly from your project data. Track payments, manage overdue accounts, and maintain clear financial records. Understand the 2% platform fee structure and optimize your pricing.
Why Use Invoicing in ContractShield
From draft to payment — one integrated flow
Automatic invoice generation from tasks, materials, and labor hours — no manual data entry
Transparent pricing breakdown keeps clients confident they're being billed fairly
Built-in payment tracking prevents 'payment fell through the cracks' excuses
Overdue reminders save you from chasing clients for money
Full audit trail (invoices, payments, adjustments) for accounting and tax purposes
2% platform fee is transparent and competitive vs. credit card processing (2.9% + $0.30)
The 4-Step Invoice Workflow
From project completion to payment in hand
Invoice Creation
Draft from project milestones or tasks
- 1Go to your project's Payments tab
- 2Select tasks, materials, and labor hours to include
- 3AI auto-calculates labor costs and material totals
- 4Add custom line items if needed (mobilization, equipment rental, permits, etc.)
- 5Review the breakdown and adjust quantities or rates
Invoice Terms
Set payment conditions and timing
- 1Choose due date (Net 7, Net 15, Net 30, or custom)
- 2Add notes or special terms (e.g., 'Payment required before final walkthrough')
- 3Optionally apply deposit requirement or partial milestone payments
- 4Attach supporting documents (photos, timesheets, receipts) for transparency
- 5Client gets clear invoice with all details
Invoice Sending
Submit to client for review and approval
- 1Preview invoice formatting and clarity
- 2Send to client with message (optional)
- 3Client receives notification and can review details
- 4Client can ask questions or request adjustments in chat
- 5Invoice moves to 'Sent' status in your payment tracker
Payment Tracking
Monitor payment status and follow up
- 1Track: Not sent → Sent → Viewed → Paid
- 2Get reminders for overdue invoices
- 3Send payment reminders if payment is late
- 4Record payment when received (manual or auto via Stripe)
- 5Generate payment reports for accounting
Platform Fee Structure
Understand the 2% fee and how it impacts your invoicing
Contractor
Fee
1% of invoice total
Example
$10,000 invoice → $100 fee
When Applied
Deducted from your payment when client pays
Client
Fee
1% of invoice total
Example
$10,000 invoice → $100 fee
When Applied
Added to invoice total client sees
Total Platform Fee
Fee
2% combined
Example
$10,000 invoice → $200 total (1% + 1%)
When Applied
Ensures fair value for marketplace matching
Why 2% Is Fair
The 2% platform fee (1% client + 1% contractor) is significantly lower than credit card processing (2.9% + $0.30). It covers the cost of the Work Order Marketplace matching, payments infrastructure, and ongoing platform support. Unlike credit cards, you get a marketplace to find work — it's a value exchange.
Common Scenarios
Real invoicing situations and how to handle them
Your invoice was sent 5 days ago; client hasn't paid yet
Use the payment reminder feature. Send a friendly notification: 'Hi, just checking in — let me know if you have questions about the invoice.' Client gets a nudge without feeling pressured. Track reminder sent.
Client claims they paid 2 weeks ago but you never received it
Check your Payment tab. If it shows 'Unpaid' or 'Sent', payment wasn't recorded in the system. Ask client for proof (check image, bank transfer confirmation, Stripe receipt). Update the payment status once verified.
Mid-project, client wants to add a $500 material not in the original quote
Create a new invoice or amendment (depending on your contract). Add the material as a line item. Send for client approval before purchasing or billing. Once approved, you're protected.
You've completed the job; client says they'll pay next month
Set invoice due date to 15 days from today, not 'when they feel like it.' Document in invoice notes: 'Final payment due [date]. Work will not be considered complete until payment is received.' Protects you legally.
You worked overtime due to client changes; want to bill extra
Create a change order first (on the project page). Document the extra work, cost, and client approval. Then include it in the next invoice with clear line item: 'Change order — Additional labor: 10 hours @ $75/hr = $750.'
What to Watch Out For
Common invoice mistakes and how to avoid them
Invoicing Without Client Approval
The Problem
If you send an invoice for work the client didn't authorize (or rates they didn't agree to), they'll refuse payment. Dispute ensues.
The Fix
Always get written approval (via chat or change order) before invoicing scope changes or rates different from the contract.
Vague Line Items
The Problem
Invoices with 'Labor: $2,000' or 'Materials: $1,500' invite disputes. Client asks, 'For what exactly?'
The Fix
Be specific: 'Framing labor (40 hrs @ $50/hr): $2,000' or 'Materials: 2x 2x4x8 lumber, 1x box 3.5" nails, etc. — $1,500.' Clients respect clarity.
Missing Documentation
The Problem
If you can't show the work (no photos, no time logs), client questions the invoice. 'Prove you spent 40 hours on this.'
The Fix
Attach timesheets, material receipts, and progress photos to every invoice. Build trust through evidence.
Not Chasing Overdue Invoices
The Problem
If you let a $5,000 invoice sit unpaid for 2 months without following up, cash flow suffers. Client assumes you forgot.
The Fix
Set reminders at +5 days and +15 days past due. Send friendly reminder emails. Escalate if past +30 days.
Ignoring the 2% Platform Fee
The Problem
If you don't account for the 2% fee in your pricing, you're working for less than you thought.
The Fix
Build the 2% fee into your rates or explain it to clients upfront. On a $10,000 project, it's $200 — budget accordingly.
Start Creating Invoices
Generate your first invoice from a project today. Professional invoices lead to faster payments.