Invoicing for service provision: hourly rates, fixed fees and expenses

The three methods of invoicing for service provision

Invoicing for services is based on three main approaches: by the hour, by fixed fee or in mixed mode. Each method has its advantages depending on your business and client relationship.

Hourly invoicing: ideal for services whose duration is difficult to estimate (consulting, troubleshooting, support). The client pays for the time actually spent. Transparent but requires rigorous tracking.

Fixed fee invoicing: fixed price for a defined project (website creation, audit, training). Reassures the client about the final budget and simplifies administrative management. Requires an accurate estimate of the time needed.

Mixed invoicing: combines both approaches. Example: monthly maintenance at a fixed fee + additional developments invoiced by the hour. Offers flexibility and predictability.

The choice depends on your sector, the complexity of the project and your clients' expectations.

Hourly invoicing: calculation and best practices

Hourly invoicing requires rigour and transparency to avoid misunderstandings with your clients.

Determine your hourly rate by taking into account your overheads, expertise and market rates. A freelance graphic designer typically charges between 80 and 150 CHF/hour, an IT consultant between 120 and 200 CHF/hour.

Track your hours precisely with a time tracking tool or detailed timesheet. Note the date, duration and nature of each intervention.

On the invoice, mention: the number of hours per intervention or per day, the hourly rate, a clear description of the services provided. Example: "E-commerce module development: 12 hours at 130 CHF/h".

Best practices: send regular time reports to your clients, have timesheets validated before invoicing, and define from the outset whether you round to the quarter-hour or half-hour.

Example invoice for hourly services

Here is a practical model of an hourly invoice compliant with Swiss standards:

Invoice no. 2024-045
Date: 15 March 2024

Services:

• 12.03.2024 - Requirements analysis and technical audit: 4 hours at 120 CHF/h = 480 CHF

• 13.03.2024 - Feature development: 6 hours at 120 CHF/h = 720 CHF

• 14.03.2024 - Testing and corrections: 3 hours at 120 CHF/h = 360 CHF

Total hours: 13 hours
Subtotal excl. VAT: 1'560 CHF
VAT 8.1%: 126.36 CHF
Total incl. VAT: 1'686.36 CHF

This clear format allows the client to understand exactly what they're paying for and facilitates verification of the services.

Fixed fee invoicing: defining the scope and price

The fixed fee offers budget visibility to the client and simplifies your administrative management. But it requires rigorous preparation.

Estimate the time needed by detailing all the project tasks. Add a safety margin of 15 to 20% for unforeseen circumstances. If you estimate 40 hours at 100 CHF/h, invoice a fixed fee of 4'500 to 5'000 CHF.

Define the scope precisely: which deliverables, how many versions, what deadlines? The more precise it is, the fewer disputes there will be. Example: "Creation of a 5-page showcase website, 2 rounds of corrections included".

Manage out-of-scope requests by invoicing them separately. Inform the client as soon as a request falls outside the initial framework and propose a supplementary quote.

The fixed fee protects your profitability if you work quickly, but can become unprofitable if the project drifts.

Example fixed fee invoice

Fixed fee invoice model for a web project:

Invoice no. 2024-046
Date: 20 March 2024

Service:
Creation of a responsive showcase website (5 pages) including:
- Customised graphic design
- Technical and responsive integration
- Content management training
- 2 rounds of corrections

In accordance with quote no. 2024-012 dated 15 February 2024

Fixed fee: 4'800 CHF
VAT 8.1%: 388.80 CHF
Total incl. VAT: 5'188.80 CHF

The reference to the quote or contract avoids any ambiguity about the scope of services included in the fixed fee.

Mixed invoicing: combining hours and fixed fees

Mixed invoicing combines the predictability of the fixed fee with the flexibility of hourly rates. It's particularly suitable for maintenance contracts or evolving projects.

Typical use cases:

• Monthly maintenance at a fixed fee (500 CHF/month) + specific developments by the hour (120 CHF/h)

• Strategic consulting fixed fee (2'000 CHF) + operational support hours (150 CHF/h)

• Support subscription (monthly fixed fee) + urgent out-of-hours interventions (premium rate)

Presentation on the invoice: clearly separate the two elements with distinct lines. Example:

"Monthly maintenance fixed fee March 2024: 500 CHF
Contact module development: 8 hours at 120 CHF/h = 960 CHF"

This approach offers stable recurring income whilst valuing additional services.

Additional expenses: travel, materials and disbursements

Beyond your services, certain expenses can be recharged to the client. They must appear on separate lines of your invoice.

Travel expenses: mileage (generally 0.70 CHF/km), public transport, parking. Example: "Travel Lausanne-Geneva: 120 km at 0.70 CHF/km = 84 CHF".

Materials and supplies: project-specific purchases (software licences, photographic equipment, printing). Keep the receipts.

Subcontracting and disbursements: external services invoiced on behalf of the client (photographer, translator, web hosting).

VAT rules: most expenses are subject to VAT at the standard rate of 8.1%. Expenses recharged as is (disbursements) may be exempt if you act as a simple intermediary. To understand everything about VAT, consult our complete guide on VAT in Switzerland.

VAT on service provision in Switzerland

The majority of service provision is subject to the standard rate of 8.1%. This applies to consulting, IT, design, training, marketing or engineering.

Special cases:

• Reduced rate 3.8%: hotel accommodation only (breakfast included)

• Reduced rate 2.6%: does not apply to standard services

• Exemptions: medical services, education, certain cultural activities

Registration obligation: you must register for VAT if your turnover exceeds 100'000 CHF per year. Below this, registration is optional but can be advantageous for recovering VAT on your purchases.

On the invoice: you must mention your VAT number (CHE-XXX.XXX.XXX VAT), the amount excl. VAT, the rate and amount of VAT, and the total incl. VAT. BePaid automatically manages these calculations and helps you stay compliant with its integrated VAT feature. To choose between declaring VAT on invoicing or on receipt, read our article on VAT declaration methods.

Mandatory information on a service provision invoice

A compliant invoice must contain several legal elements to be valid in Switzerland.

Complete contact details:

• Service provider: name/company name, address, VAT number if registered

• Client: name/company name, complete address

Invoicing elements:

• Unique and sequential invoice number

• Invoice issue date

• Precise description of services (dates, nature, quantity)

• Amounts: subtotal excl. VAT, VAT (rate and amount), total incl. VAT

• Payment terms: deadline (e.g. 30 days net), bank details

Swiss QR-invoice: since 2020, the QR-code has replaced the orange and red payment slips. It facilitates payment and bank reconciliation. BePaid automatically generates compliant QR-invoices in a few clicks, with all mandatory information. Your clients pay faster, you track your receipts in real time.

Deposits and staged payments for large projects

For major projects, requesting a deposit protects your cash flow and engages the client in the relationship.

Common amount: 30 to 50% of the total amount upon signing the contract. For a 10'000 CHF project, request 3'000 to 5'000 CHF as a deposit.

Invoicing the deposit: issue a real deposit invoice with VAT (not a simple proforma). Example: "40% deposit web project - 4'000 CHF excl. VAT + 324 CHF VAT = 4'324 CHF incl. VAT".

Invoicing the balance: upon final delivery, deduct the deposit already received. VAT is calculated on the total amount, not only on the balance. Example:

"Total project: 10'000 CHF excl. VAT
Deposit already invoiced: -4'000 CHF excl. VAT
Balance excl. VAT: 6'000 CHF
VAT 8.1% on 6'000 CHF: 486 CHF
Total incl. VAT balance: 6'486 CHF"

To learn everything about the accounting management of deposits, consult our guide on deposits and proforma invoices.

Invoicing for service provision is based on three main approaches: the hourly rate offers transparency and flexibility, the fixed fee guarantees predictability and budget clarity, whilst the mixed formula combines the advantages of both methods. Whatever your approach, clearly define the scope of your services, document the hours worked and manage additional expenses rigorously.

The mandatory information and correct application of VAT on your invoices guarantee your legal compliance in Switzerland. For large projects, structure your payments with deposits and interim invoices to secure your cash flow.

BePaid simplifies all this management: create compliant invoices in a few clicks, automatically calculate VAT and track your payments in real time. Test free of charge up to 10 invoices and discover how to professionalise your service invoicing today.