Invoicing Defaults: Save Time on Every Quote and Invoice

Imagine creating quotes and invoices without re-entering the same information over and over. That's exactly what invoicing defaults do for you. Set up your rates, taxes, and payment terms once, and SemaQuote automatically applies them to every new document you create.

This isn't just about convenience (though it definitely is convenient). Consistent defaults also mean fewer mistakes and more professional-looking documents every time.

Where to Find Your Invoicing Defaults

Here's how to access your default settings:

1. Open SemaQuote on your phone or computer
2. Tap Settings in the main menu
3. Select Invoicing Defaults

You'll find all your billing preferences organized in one place.

Setting Your Default Hourly Rate

Your hourly rate is the starting point for most labor charges. When you add a labor line item to a quote or invoice, SemaQuote automatically fills in this rate, saving you from typing it each time.

How to Set It Up

1. Enter your standard hourly rate in the Default Hourly Rate field
2. This rate appears automatically when you add labor items
3. You can always adjust it for specific line items when needed

Getting Your Rate Right

A few things to keep in mind:

• Set your most common rate: If you charge $85/hour for most jobs, make that your default
• You're not locked in: Every quote and invoice lets you override the default for that specific job
• Consider separate rates later: For different service types (like emergency calls), you can adjust per job

Pro tip: Review your default rate every few months to make sure it reflects your current pricing. It's easy to forget to update this as your business grows.

Configuring Your Tax Settings

Taxes can be complicated, but your tax settings don't have to be. Here's how to set them up once and let SemaQuote handle the calculations.

Your Tax Rate

Enter your applicable tax rate as a percentage. Common examples:

• 8.25% for a typical state/local sales tax
• 0% if your services aren't taxable in your area

What Gets Taxed?

You have control over which parts of your invoices include tax:

• Apply tax to labor: Turn this on if labor is taxable in your jurisdiction
• Apply tax to materials: Turn this on if materials are taxable
• Show tax as separate line: Choose whether to display tax as its own line item or include it in the totals

Customizing the Tax Label

Not everyone calls it "Sales Tax." Customize the label to match your local terminology:

• "Sales Tax"
• "State Tax"
• "GST/HST"
• Or any custom label you prefer

Adding Your Tax ID (Optional)

If your jurisdiction requires it, enter your tax ID, GST number, or VAT number. This shows up on your invoices so clients have it for their records.

Choosing Your Payment Terms

Payment terms tell your clients when payment is due. The right terms help you get paid on time while staying competitive in your market.

Available Options

Here's what you can choose from:

Which Terms Should You Use?

Finding the right payment terms depends on your situation:

• Industry norms: Net 30 is standard for most contractor services
• Client relationships: Long-standing clients might get more flexible terms
• Your cash flow: Shorter terms mean faster payment but might feel aggressive to some clients
• Job size: Larger projects often warrant longer payment windows

Remember, your default is just a starting point. You can always adjust terms for specific invoices when the situation calls for it.

Setting Up Late Fees

Late fees encourage clients to pay on time and compensate you when they don't. Here's how to configure them fairly and effectively.

Turning On Late Fees

1. Toggle Enable Late Fees to on
2. Choose your fee type
3. Set the fee amount
4. Pick a grace period

Choosing a Fee Type

You have two options:

Percentage-based fees work best for larger invoices:

• Calculated as a percentage of the invoice total
• Example: 1.5% monthly on the overdue balance
• Typical range: 1% to 2% per month
• Creates a meaningful incentive for larger invoices

Flat fees keep things simple:

• A fixed dollar amount regardless of invoice size
• Example: $25 after the due date
• Easier for bookkeeping
• Consider: A flat fee might feel high on small invoices

Adding a Grace Period

The grace period is the number of days after the due date before late fees kick in:

• 0 days: Fees apply immediately when payment is late
• 5-7 days: A reasonable buffer for mail delays or processing time
• 10-15 days: A more lenient approach for valued clients

A Note on Local Regulations

Some areas limit how much you can charge in late fees. It's worth checking your local regulations to make sure you're in compliance. SemaQuote lets you set a maximum cap if needed.

How Your Defaults Work in Practice

Understanding when your defaults apply helps you work more efficiently:

When You Create a Quote

• Your default hourly rate fills in automatically for labor items
• Tax settings determine how taxes are calculated
• You can modify anything before sending

When You Create an Invoice

• All your defaults carry forward
• Payment terms set the due date automatically
• Late fee settings are attached and ready to apply if needed

When You Convert a Quote to an Invoice

• The values from your quote are preserved
• Your default payment terms are applied
• Late fee policy activates based on your settings

Learn more about converting quotes to invoices to streamline your workflow.

Overriding Defaults When You Need To

Your defaults are starting points, not rules set in stone. You can override any default:

• Per job: Adjust rates, taxes, or terms on individual quotes or invoices
• Per client: Set custom payment terms for specific clients
• Per line item: Change rates on individual line items

This flexibility means your defaults speed you up on typical jobs while still letting you customize for special situations.

Best Practices for Your Defaults

Here's what works well for most contractors:

1. Review quarterly: Update your rates to keep pace with market conditions and your growing expertise

2. Document your policies: Include your payment terms and late fee policies in your contracts so clients know what to expect

3. Stay consistent: Changing terms frequently can confuse clients and complicate your records

4. Communicate early: Make sure clients understand your payment expectations before you start work

5. Know your local laws: Tax rates and late fee limits vary by location, so stay informed about your area

Saving Your Changes

After you've configured your defaults:

1. Review all settings for accuracy
2. Tap Save Changes
3. All new quotes and invoices will use these defaults

Important: Existing quotes and invoices keep their original settings. This protects your records and prevents confusion with clients who've already received documents.

What's Next?

With your invoicing defaults set up, you're ready to create documents faster than ever. Here are some logical next steps:

• Set up payment links to give clients convenient ways to pay
• Configure bank transfer details for larger invoices
• Create your first quote and watch your defaults in action

Taking a few minutes to set up your invoicing defaults pays off every time you create a quote or invoice. You'll save time, reduce errors, and maintain consistent, professional billing practices across your entire business.