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Invoice Types
Time and Materials Invoice
Definition
An invoice billing for actual time spent and materials used, rather than a fixed price.
Overview
T&M invoicing charges clients for actual hours worked (at agreed hourly rates) plus materials and expenses. It's common when project scope is uncertain.
Example
A developer bills 40 hours at $150/hour plus $500 in software licenses, totaling $6,500.
Best Practices
Track time accurately, provide detailed breakdowns, include receipts for materials.
Common Mistakes to Avoid
Poor time tracking
Not documenting materials
Billing for non-billable time
Frequently Asked Questions
When should I use time and materials pricing?
Use when scope is unclear, for ongoing support, or when clients want detailed tracking.