Recruiter billing changes by engagement model. Everhour turns tracked billable time and expenses into client-ready invoices.
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A recruiter invoice should show the service actually delivered: permanent placement, retained executive search, temporary staffing, contract staffing, outsourcing, outplacement, or HR consulting. A direct-hire placement invoice commonly bills a placement fee after the employer and candidate agree to employment. A staffing invoice commonly bills recurring labor charges while the worker remains employed by the agency.
The invoice should identify the client, role, candidate or worker when appropriate, invoice date and number, payment terms, remittance details, and the specific fee basis. For ordinary United States private-sector invoices, no single federal invoice form applies. Invoices serve as supporting documents for business records, so clarity matters more than matching a national template.
Direct-hire recruiter commissions are commonly expressed as 20% to 30% of the new hire's first-year salary. Management-executive searches commonly use 25% to 35%, with senior executive searches sometimes higher. A clear line item reads: "Director of Sales placement fee, 25% of $160,000 first-year salary, $40,000."
Retained searches need a written fee and payment schedule. Engagement terms should cover scope, timing, fees, payment schedule, deliverables, guarantees, off-limits, conflicts, and data management. A search can run from a few weeks to several months, so milestone invoices need the exact event attached, such as kickoff retainer, shortlist delivery, interview stage, or final placement.
Recruiter invoices often fail when the line item hides the fee trigger. A contingency placement fee should identify the successful hire and agreed salary basis. A retained search invoice should point to the contracted milestone. A temporary staffing invoice should separate billable labor periods, worker classifications used by the agency, and any approved expenses.
United States sales and use tax treatment depends on state and local rules, nexus, the service type, and where the sale is sourced. The United States does not use a national VAT or GST invoice regime, so a recruiter invoice should not ask for a VAT number. Use a state seller permit or sales-tax account only where required for taxable sales.
A free invoice works for a one-off placement, a single retainer installment, or a small consulting job where the fee is already agreed and no recurring labor detail is needed. It is enough when the invoice only has to document the charge, terms, client contact, and payment instructions.
A managed workflow fits recruiting firms that bill multiple clients, recurring staffing labor, retained search milestones, pass-through expenses, or billable recruiting support by project. Everhour Billing & Invoicing converts tracked billable time and expenses into invoices, calculates amounts from rates while excluding non-billable tasks, supports client defaults, and exports invoices to QuickBooks Online, Xero, or FreshBooks.
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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The engagement model changes the invoice structure. A contingency placement invoice centers on a successful hire and fee percentage. A retained executive search invoice follows the written payment schedule. A temporary or contract staffing invoice usually lists recurring labor charges by period, worker, role, rate, and approved expenses.
A placement fee invoice should show the salary basis when the fee is calculated as a percentage of first-year salary. For example, a 25% fee on a $120,000 salary produces a $30,000 placement fee. Include only the candidate and compensation details allowed by the client agreement and privacy practices.
Recruiter invoices in the United States do not need VAT or GST fields because the country does not use a national VAT or GST invoice regime. Sales and use tax obligations are state and local matters. Service taxability varies by state and service type, so the tax line should follow the applicable jurisdiction.
A retained search invoice can be issued before the hire when the written engagement sets an upfront retainer or milestone payment schedule. The invoice should name the retained search, role, milestone, payment terms, and any related deliverable. Avoid describing the charge as a success fee unless the contract uses that trigger.
Staffing invoices need the billing period, worker or role, approved hours or units, rate, expenses, and client authorization reference. Recurring labor invoices become difficult to verify when they only show a total. A weekly or monthly staffing invoice should let the client trace the charge back to approved work.
Everhour Billing & Invoicing converts tracked billable time and expenses into invoices and calculates amounts from rates while excluding non-billable tasks. Recruiting teams can use client settings, taxes, discounts, payment terms, invoice customization, and exports to QuickBooks Online, Xero, or FreshBooks.
Everhour Reporting lets admins build reports with columns for billable time, non-billable time, billable amount, cost, invoice status, and client or project details. A recruiting firm can review uninvoiced work before sending monthly staffing, consulting, or retained-search invoices.
Track approved recruiter time, expenses, and client billing terms in Everhour, then convert billable work into invoices with accounting exports and synced invoice status.
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