How staffing firms typically bill
Billing tracks actual contractor hours against an agreed rate structure, invoiced frequently to manage cash flow on both sides.
- Bill rate: the contractor's pay rate plus a markup (commonly 20-50%, depending on role and market)
- Billing cycle: usually weekly or bi-weekly, tied to timesheet submission and approval
- Overtime: billed at a different rate where applicable, stated explicitly in the agreement
Common invoice line items
Each contractor should appear as their own line, with hours and rate visible, so the client can reconcile against their own timesheet approvals.
- [Contractor Name] — Senior Developer — 40 hrs @ $85/hr — $3,400
- [Contractor Name] — QA Engineer — 38 hrs @ $55/hr — $2,090
- Overtime (if applicable) — [X] hrs @ $[rate] — $[amount]
Keeping the billing cycle tight
A recurring invoice set to the same weekly or bi-weekly cycle as timesheet approval keeps cash flow predictable and avoids a backlog of unbilled hours accumulating. Recurring invoices in Hanko generate and send automatically on schedule, so the cycle doesn't slip when someone forgets to build the invoice manually.
Handling timesheet disputes before they become payment disputes
The most common billing friction in staffing is a client disputing hours after the invoice is already sent. Requiring timesheet approval before the invoice is generated — rather than invoicing first and reconciling later — prevents a payment delay from turning into a larger dispute over what was actually worked.
Frequently asked questions
How often should a staffing firm invoice clients?
Weekly or bi-weekly is standard, tied to the timesheet approval cycle, rather than monthly — this keeps cash flow predictable for both the staffing firm and the contractors it pays.
How is the bill rate calculated?
Typically the contractor's pay rate plus a markup, commonly 20-50% depending on role, market and contract terms. State the rate and markup structure explicitly in the client agreement.
Should timesheets be approved before or after invoicing?
Before, where possible. Requiring approval before generating the invoice avoids turning a timesheet disagreement into a payment dispute after the invoice has already been sent.