What to include in a consultant invoice
Learn consultant invoicing essentials to get paid fast and maintain professional standards in Australia and New Zealand
Table of Contents
What's in this guide?
Clear, consistent invoicing helps you get paid faster and boosts your professional image.
A step-by-step guide to consultant invoicing
Step 1: Lay the foundation for smooth invoicing
Before you even think about sending a consulting invoice, you'll want to make sure you have a clear agreement in place.
This agreement is a simple document that outlines your deliverables, pricing, and most importantly, the invoice terms for your consulting services – terms like how often you will send your clients an invoice and how quickly that invoice will need to be paid.
A good agreement makes consultant invoicing easier and helps set expectations from the get go, so there are no surprises for either parties. Plus, it gives you something to refer back to if there is confusion down the road. Understanding the differences between employees and contractors can also help you structure these agreements appropriately.
Step 2: Stay compliant with the right business info
To create a compliant freelance consultant invoice, you'll need to gather a few key details upfront, like:
- Your client's legal name and business address
- Their ABN (if in Australia) or NZBN (if in New Zealand)
- Your own registered business number
Having this info on file ensures you meet Australian tax rules for consulting invoices, especially when you need to apply GST or submit a BAS. It's also helpful to fill out as much client information for your invoices as you can, including your client's phone number, or any email addresses, should you or the tax office need to contact them to verify details. If you need to register for an ABN in Australia, you can do so through the Australian Business Register.
Step 3: Hourly vs fixed: What's right for your business?
When thinking about how to invoice as a consultant, you'll need to decide whether to charge by the hour or set a fixed price. This is often referred to as hourly vs fixed invoicing for consultants. When choosing which structure works best for you, it's worth remembering:
- Hourly billing works well for ongoing or time-based tasks
- Fixed fee projects are ideal when your scope and outcomes are clearly defined
No matter which method you choose, just make sure it's reflected accurately in your invoice format. Your pricing structure also affects your cash flow planning, so consider how each approach impacts your business finances.
Step 4: Start with a reliable format, then make it yours
If you're not sure what to include in a consultant invoice, picking a good consulting invoice template is your best starting point. It takes the guesswork out and ensures you don't miss any key fields.
Better still, using invoicing software like Xero will help you to create a professional, beautiful template in seconds, that you can personalise however you'd like.
Use this as your go-to invoice checklist for consultants each time you bill a client:
- Contact and business details
- ABN/NZBN
- Service description and rate
- Invoice number and date
- Total amount due
- Relevant GST on consulting invoices (Australia/NZ)
- Payment due date
Need more help? Take the hassle out of managing consultant invoicing with our easy-to-use template. Get the free template now.
Step 5: Know when and how to add tax to your invoices
If you're registered for GST in Australia or New Zealand, you're legally required to include it in your practice or freelance consulting invoice. This means showing the GST amount and stating whether it's included in or added to your prices.
- In Australia, GST is 10%
- In New Zealand, GST is 15%
Remember, failing to follow the Australian tax rules for consulting invoices can delay payments or lead to compliance issues, so always double-check your GST details before hitting send. You can register for GST in Australia or New Zealand if you meet the registration thresholds.
Stay on top of your obligations. Understand everything you need to know about GST and BAS.
Step 6: Help clients pay you on time
Clear invoice terms for your consulting services can make billing bucket loads more efficient. Plus, it helps build trust with your clients – they know exactly what they need to do and by when.
So, it's generally good practice to outline in your invoice terms:
- When payment is due (e.g. upon receipt, or within 7, 14 or 30 days)
- Accepted payment methods (like bank transfer, credit card or Paypal)
- Any late fees or early payment discounts (noting fee penalties must have been agreed to in your consulting agreement)
When using invoicing software like Xero, you can set these defaults to automatically appear on every invoice you send, saving you time and mental energy. Plus, accepting payments is easier than ever thanks to integrations with Stripe and GoCardless.
Step 7: Give clients everything they need to approve payment
Depending on your client or contract, you might also need to attach time logs, project summaries, or purchase orders. These supporting documents provide extra context and reduce back-and-forth questions.
Having a consistent invoice checklist for consultants, with the right attachments, can speed up approvals, especially for large or corporate clients. Xero's invoicing features make it easy to attach and organize supporting documents efficiently.
Step 8: Get your invoice into the right hands
Once you've done all the prep work, it's time to make sure your consulting invoice gets where it needs to go. The best way to do this is by using secure email or invoicing software that lets you track delivery and see when it's been opened.
This step is particularly helpful for solo operators and small teams who don't have dedicated admin staff. Xero's invoicing software for solo consultants includes real-time tracking and automatic reminders to take the pressure off you.
Step 9: Stay polite, professional and persistent
If a payment deadline passes, don't wait too long to follow up – late payments can seriously affect your cash flow.
Use friendly reminder emails, and if you're using Xero, set up automated follow-ups so your consultant invoicing process keeps ticking over even when you're focused on client work. Understanding how late payments impact your business cash flow can help you prioritise follow-ups effectively.
This kind of structure is what separates reactive billing from a proactive approach that gets cash in your pocket, when you need it.
Step 10: Simplify your tax accounting, and stay compliant
Good invoicing isn't just about getting paid, it's also about record-keeping. By storing copies of every freelance consultant invoice, payment receipt and expense report, you'll be prepared for tax time and quarterly BAS submissions.
Xero's cloud-based invoicing software automatically organises your records and links them to your accounts, keeping you aligned with strict Australian tax rules for consulting invoices. For comprehensive tax compliance guidance, check out Xero's GST guide.
No more crumpled receipts or digging through piles of paperwork. For complex tax situations, consider consulting with professionals through Xero's partner directory.
Frequently asked questions about consultant invoicing
Do I need an ABN to invoice as a consultant in Australia?
Yes, if you're running a business earning more than $18,200 annually from freelance or consulting work, you'll need an Australian Business Number (ABN). Without one, clients may withhold tax at the top marginal rate.
What is the best format for a freelance consultant invoice?
The best invoice format for consultants is clear, detailed, and professional. Include your business details, ABN/NZBN, service descriptions, total amount, GST if applicable, and payment terms.
When should I invoice for consulting work?
This depends on your consulting agreement. You can invoice upfront, upon milestone completion, or at regular intervals (e.g. weekly or monthly). Just make sure it's consistent and agreed upon in writing.
Can I charge GST if I'm not registered?
No. You must be registered for GST to charge it. If you're not registered, your invoice should not include GST or refer to it.
What invoice software is best for consultants in AU/NZ?
Xero is one of the most trusted tools for consultants and small service firms. It helps you create, send, track, and manage invoices, all while keeping your tax obligations in check.
Start using Xero for free
Access Xero features for 30 days, then decide which plan best suits your business.