Hourly invoice template (Canada)

Selling time is simple: hours times rate. Getting paid for it promptly depends on the client being able to see what the hours covered. This template puts the period and task on every line and the right GST/HST underneath.

The sample is a registered Calgary developer billing half a month of work to a Canmore client. It suits developers, bookkeepers, tutors, designers and anyone billing by the hour. Fill it in online and download a PDF. No account needed. It opens in the free Canadian invoice generator, ready to fill in.

What's on this template

• Your name, business name and GST/HST number.
• The client company and address.
• Invoice number, date and due date.
• Hours and rate per line, with the period or task.
• GST/HST for the client's province and the total.
• Interac e-Transfer or direct deposit details, and a note about the time log.

Example line items

Tracking and rounding

Agree how you round — 15-minute steps are common — and say so in the notes. Keep a simple log of date, task and hours. If one client has several projects or rates, give each its own line.

Tax

The client's province decides the tax on services: GST 5% in Alberta, HST 13% in Ontario, HST 15% in New Brunswick. Clients outside Canada are generally zero-rated. If your taxable sales are $30,000 or less you can stay a small supplier and charge none. See which sales tax to charge and invoicing as a small supplier.

Terms

Net 15 or Net 30 is common for hourly work. If you want to charge late interest, agree it up front with the yearly rate stated; see late payment interest in Canada.

Setting your rate

Work back from what you need to earn: your target income plus business costs, divided by the hours you can realistically bill once admin, sales and holidays are taken out. Many freelancers bill 60–70% of the hours they work. If you're registered for GST/HST, quote rates before tax and say so, so business clients compare like with like.

Caps, estimates and overruns

Clients often want a likely total. Give an estimate in hours and agree what happens if the work runs over: a cap, a check-in at 80% of the estimate or a new quote. Showing progress against the estimate on each invoice ("40 of an estimated 60 hours") keeps the budget visible and avoids surprises at the end.

Minimums and travel

If you charge a minimum, such as one hour per session, or bill travel time, say so in your terms and show it as its own line when it applies.

Making it easy to pay

Interac e-Transfer is the quickest way for Canadian clients to pay: give the email or mobile number you've registered and turn on autodeposit, so the client doesn't need a security question. For larger amounts, direct deposit works well — give your institution number (3 digits), transit number (5 digits) and account number. Ask clients to put the invoice number in the message or reference so you can match each payment, and record it against the invoice when it arrives.

Records and year end

Keep a copy of every invoice you send, in number order with no gaps, and record when and how each was paid. As a sole proprietor you report the income on form T2125 with your income tax return, and once you're registered, the GST/HST you charged on your GST/HST return. The CRA says to keep records for six years from the end of the last tax year they relate to, so 2026 invoices are kept until at least the end of 2032. A free account keeps your invoices, clients and payments in one place, which makes the year-end totals easy to pull together.

Common mistakes

• One line for a month of hours with no dates or tasks.
• Unstated rounding.
• Your own province's tax rate instead of the client's.
• Missing GST/HST number on an invoice of $100 or more.