How to write an invoice: a step-by-step guide for small businesses

An invoice is a request for payment. A good one tells the client what they're paying for, how much, by when, and how to pay, with nothing they need to email you about. Here's what to include and why.

The invoice checklist

1. The word "Invoice" at the top, so it isn't confused with a quote.
2. Your business details: name, email, phone, and address if you have one.
3. Your client's details: the person's name, company, and email.
4. An invoice number. Unique and in sequence (INV-0001, INV-0002…). It's how you and your client refer to the invoice, and your accountant will thank you.
5. Invoice date and due date. Write the actual date, not only "Net 30". (Not sure what to choose? See payment terms explained.)
6. Line items: what you did or sold, the quantity, the rate and the line total.
7. Subtotal, discounts, tax and total. Show each one on its own line.
8. Deposit or amount already paid, if any, and the balance due.
9. How to pay: a pay-online link, bank details, or who to make a check out to.
10. Notes: a thank-you, late-fee terms, or anything specific to this job.

Write line items the client will recognise

Vague lines like "Services – $1,800" invite questions and slow payment down. Be specific:

• "Kitchen cabinet installation, 12 units" — 1 × $1,450.00
• "Hardware and fixings" — 1 × $210.00
• "Haul-away of old cabinets" — 1 × $140.00

If you bill by the hour, put the hours in the quantity column and your hourly rate in the rate column.

Taxes and discounts

Apply a discount to the subtotal first, then calculate sales tax on the discounted amount, and show both lines so the client can follow the math. Whether you need to charge sales tax at all depends on your state and what you sell; check with your state's tax department or an accountant.

Deposits and partial payments

If the client paid a deposit, show it: Total $3,000, Deposit paid $1,000, Balance due $2,000. It prevents the "didn't I already pay you?" email. Here's how to ask for a deposit without it feeling awkward.

Send it right away

Send the invoice the day the work is done. Email it with a short note:

Hi Dana, thanks again for the work this week. Your invoice INV-0042 for $2,000 is attached, due April 14. You can pay online from the link. Let me know if you have any questions.

Then follow up if it isn't paid. Most late payments are forgotten, not refused. Here's a follow-up schedule with templates.

Common mistakes

• Reusing or skipping invoice numbers.
• No due date, or a due date that's hard to find.
• Forgetting to make it easy to pay. Every extra step slows payment down.
• Sending it weeks after the job.

Do it in two minutes with Invoicefy

Invoicefy numbers your invoices automatically, does the subtotal, discount, tax and deposit math, and sends your client a private link where they can see the invoice and pay by card or PayPal. Reminders go out automatically if it's late.

Make your first invoice free