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2 min read

How To Manage Contractor Invoices (Without Wasting Time)

Key Takeaways

  • To manage contractor invoices effectively, it’s important to set clear payment terms, keep accurate records, use invoice management software, make timely payments, and review invoices carefully.
  • Good record-keeping can help you avoid late fees and missed payments.
  • Payroll software, automates tasks like invoice processing, payment reminders, and record-keeping, freeing up your time for more important tasks.

Managing contractor invoices is a daunting task. Every contractor’s invoices look different, they’re submitted at different times, and each of your contractors likely has a different preferred method of payment. It’s often a headache—but it doesn’t have to be.

Useful ideas for managing contractor invoices more effectively

Here are some simple tips for managing contractor invoices like a pro.

Set clear payment terms

The first step in managing contractor invoices is to set clear payment terms with your contractors. This may include specifying when the contractor should submit their invoice, what information the invoice should include, and when you will pay. By setting these terms at the outset, you can help avoid confusion or disputes down the road.

Keep accurate records

Good record-keeping is essential when managing contractor invoices. Keep a record of each invoice and when it was received, processed, and paid. This can help you stay on top of your accounts payable and avoid late fees or missed payments.

Use invoice management software

Invoice management software can be a game-changer when it comes to managing contractor invoices. Many software solutions can automate tasks like invoice processing, payment reminders, and record-keeping. This can help streamline the invoice management process and free up your time for more important tasks. 

Make timely payments

Making timely payments is critical when managing contractor invoices. Not only is it important for maintaining a good relationship with your contractors, but it can also help you avoid late fees and interest charges. Consider setting up automatic payments or reminders to help ensure that you pay on time.

Review each invoice carefully

Reviewing each invoice carefully can help you catch any errors or discrepancies before they become a problem. Check that the hours worked or services provided match the contract or agreement with the contractor. This can help you avoid overpaying or underpaying for services.


Managing contractor invoices can be a breeze with a little bit of planning and organization. By setting clear payment terms, keeping accurate records, using invoice management software, making timely payments, and reviewing invoices carefully you can ensure your contractors are paid on time.

At RemotePad, Lech draws on his professional experience to write about employment taxes and payroll (both remote, and in-office). Lech holds a Bachelors’ degree from the University of Kent, a Master of Arts (MA) from Kings College London, and professional payroll and tax qualifications. He is the founder of both and and has 20 years experience advising on all manner of tax and business planning matters.