Everhour connects billable software work to invoicing, while this guide explains the fields clients expect.
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A software company usually invoices against one of four billing models: hourly services, fixed-fee projects, subscriptions, or milestone-based delivery. The invoice should show the billing model the client agreed to, then translate the work into clear charges. A time-and-materials invoice can list project, task, person, date range, hours, rate, and amount. A milestone invoice can name the completed phase and contract reference.
The document should also separate the invoice from nearby paperwork. A quote or estimate gives the client a pre-work price expectation. A purchase order comes from the buyer and authorizes spending. An invoice requests payment after the seller has delivered billable work, a subscription period, reimbursable expense, or agreed milestone. A receipt proves payment received after the invoice is paid.
A practical software invoice includes the seller name and address, buyer name and billing contact, invoice number, invoice date, due date, line items, subtotal, tax line when applicable, total due, payment terms, and remit-to details. Private-sector United States invoices do not follow one prescribed federal form, but invoices still serve as supporting documents for business records that show gross receipts and transaction amounts.
Line items need enough detail to prevent rework. For hourly engineering work, a line can read: API integration support, May 1-15, 2026, 18 hours at $125 per hour. For subscription billing, the line should name the product, plan, service period, quantity, and unit price. For implementation work, include the project or statement-of-work reference so the approver can match the charge to the agreement.
The United States has no national VAT or GST invoice regime, and there is no United States VAT or GST registration number to place on ordinary invoices. Sales and use tax is state and local. A software company needs to check nexus, customer location, product or service taxability, and the applicable state and local rate before adding a tax line. Service taxability changes by state and service type.
Client requests for tax identifiers also need the right treatment. A payer may request a Form W-9 to collect a Taxpayer Identification Number for IRS reporting, but that does not create a universal invoice field for every private-sector invoice. Federal contract invoices are different. FAR rules define proper invoice fields, including contractor details, invoice date and number, contract references, line items, terms, payee details, and TIN or EFT data when agency procedures require them.
A one-off invoice tool is enough when you need a clean PDF for a small job, a single client, or a fixed subscription line that rarely changes. It works well when the billable amount is already approved, the tax treatment is known, and the invoice does not need to pull time from project records. The main risk is manual cleanup if hours, rates, expenses, or discounts change after drafting.
A managed workflow fits software teams that invoice from billable time, separate non-billable product work from client work, or need reports before billing. Everhour supports billable and non-billable time through project billing status, task-level non-billable controls, custom task rates, member-rate exceptions, and reports for billable time, non-billable time, billable amount, and cost. That structure keeps invoice totals tied to the work record.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
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A software services invoice should include seller and buyer details, a unique invoice number, invoice date, due date, line items, subtotal, applicable tax line, total due, payment terms, and payment instructions. Hourly work should show the date range, hours, rate, and project or task description. Fixed-fee work should identify the milestone, deliverable, or contract reference.
A software invoice can combine subscriptions and hourly work if each charge is clearly separated. Use one line for the subscription period, plan, quantity, and price. Use separate lines for implementation, support, development, or consulting hours. This layout lets the client route recurring software charges and professional services charges correctly during approval.
Every software invoice does not need sales tax. United States sales and use tax depends on state and local rules, nexus, the buyer location, and whether the software product or service is taxable in that jurisdiction. The United States does not use a national VAT or GST invoice regime, so a single national tax rate does not apply.
Non-billable engineering work should stay off the client invoice unless the contract requires informational reporting. Internal bug fixes, product maintenance, sales engineering, and unpaid discovery time can still belong in company records. Mixing those hours into billable lines creates approval disputes and makes profitability reporting harder to trust.
Federal contract software invoices follow the contract and FAR proper-invoice requirements. FAR 32.905 lists fields such as contractor name and address, invoice date and number, contract or order references, descriptions, quantities, unit and extended prices, payment terms, remittance details, and TIN or EFT banking data when agency procedures require them. FAR payment timing commonly uses a 30-day standard.
Everhour lets admins set project billing status, mark specific tasks as non-billable, apply custom task rates, and set member-rate exceptions. Reports can show billable time, non-billable time, billable amount, and cost, so software teams can review what belongs on the invoice before sending it.
Everhour Billing & Invoicing converts uninvoiced billable time and expenses into client invoices. Teams can preview the breakdown, group invoice lines by project, task, person, date, or another available structure, and export invoices to QuickBooks Online, Xero, or FreshBooks as drafts.
Track approved billable time, exclude non-billable tasks, and review amounts before billing. Everhour gives software teams invoice-ready records tied to project work and client rates.
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