Client Billing for Security Companies: A Complete Guide

Why Client Billing Is Critical for Security Companies

Billing is how your security company gets paid. Yet many security companies struggle with billing — using inconsistent rates, manual invoicing, and disconnected systems that lead to errors, delayed payments, and lost revenue.

A well-structured billing system ensures you get paid accurately and on time, provides transparency to clients, and scales as you grow.

Common Billing Methods for Security Companies

1. Hourly Billing

The most common billing method. Clients are billed based on the actual hours worked by guards, with different rates for different service types:

• Unarmed officer: $25–$35/hour
• Armed officer: $35–$50/hour
• Supervisor: $40–$60/hour
• Holiday rate: 1.5x or 2x regular rate
• Overtime rate: 1.5x regular rate

2. Flat Monthly Billing

Some clients prefer a predictable monthly fee regardless of exact hours. This works well for long-term contracts with consistent coverage requirements.

• Client pays a fixed amount each month
• Typically based on estimated hours × rate
• Easier for clients to budget
• Requires accurate estimation to avoid underbilling

3. Per-Shift Billing

Clients are billed per shift, regardless of shift length. Common for event security and short-term contracts.

• Fixed rate per shift (e.g., $200 per 8-hour shift)
• Simple to calculate and invoice
• Works well for event security

4. Per-Patrol Billing

For mobile patrol companies, clients are billed per patrol visit rather than per hour.

• Fixed rate per patrol (e.g., $50 per visit)
• Client pays for verified patrols only
• Requires accurate patrol tracking

Setting Your Rates

When setting rates, consider:

• Direct costs: Guard wages, benefits, payroll taxes
• Overhead: Insurance, equipment, software, office
• Profit margin: Typically 15–30% for security companies
• Market rates: What competitors charge in your area
• Service level: Armed vs. unarmed, specialized services command higher rates

Creating Professional Invoices

Your invoices should be clear, detailed, and professional:

• Invoice number: Sequential for tracking
• Billing period: Clear start and end dates
• Line items: Break down by service type, hours, and rate
• Subtotal, tax, total: Clearly displayed
• Payment terms: Net 15, Net 30, or due on receipt
• Payment methods accepted: Check, ACH, credit card

Managing Contracts

Contracts protect both you and your client. Every contract should specify:

• Services provided (unarmed, armed, patrol, etc.)
• Billing method and rates
• Payment terms
• Contract duration and renewal terms
• Cancellation policy
• Liability and insurance requirements

Automating Your Billing Process

Manual billing is time-consuming and error-prone. Automating your billing process saves hours every week and reduces errors:

• Automatically calculate hours from clock-in/out data
• Apply correct rates based on service type and guard
• Generate professional invoices with one click
• Track invoice status (sent, viewed, paid, overdue)
• Send automatic payment reminders
• Export data for accounting software

How ShiftGuard Can Help

ShiftGuard handles the entire client billing workflow:

• Multiple billing methods (hourly, flat monthly, per shift, per patrol)
• Custom rates per client and service type
• Automatic hour calculation from shift data
• Professional invoice generation
• Contract management with digital signatures
• Client billing settings per client
• Invoice email delivery with PDF attachments
• Client portal for invoice viewing
• Payment tracking and status management

Start 14 day trial with ShiftGuard and automate your client billing.