How To Write An Invoice – Step By Step Guide

Josef Mohamed
Josef Mohamed
April 30, 2023

As a small business owner, I understand how important it is to get paid for your work. That’s why I want to talk about one of your business’s most critical pieces of paperwork: the invoice.

My goal is to assist you throughout the process and provide tips and tricks that have proven effective over time.

In this blog post, we’ll cover everything you need to know about writing an invoice that gets paid on time. From the vital elements of an invoice to the best practices for following up with clients, you’ll be an invoicing pro in no time.

How To Write An Invoice – 7 Steps Guide

Writing an invoice is an essential part of any business that provides a product or service. Here’s a full guide on how to write an invoice:

How To Write An Invoice - full guide

Step 1: Add Your Contact Information

Your contact information is the primary way your clients will reach you if they have any questions or concerns about the invoice.

It’s also a great way to promote your brand and show professionalism. The essential contact information that you should include in your invoice includes your name or business name, address, phone number, email address, and website if you have one.

Ensure your contact information is up-to-date, and double-check for errors before sending out the invoice.

Things to consider when adding your contact information to your invoice:

  • Include your full name or your business name, whichever is applicable.
  • Add your complete mailing address, including street name and number, city, state/province, and zip/postal code.
  • Provide a phone number where clients can reach you with questions or concerns.
  • Add an email address that you check regularly and is associated with your business.
  • Consider including your website URL if you have one, as it can help promote your brand and provide more information about your business.
  • Ensure that your contact information is accurate and up-to-date before sending the invoice.
  • Consider including your logo, which can help make your invoice look more professional and memorable.

Step 2: Add the Client’s Contact Information

Not only does it make it way easier for your client to identify the invoice, but it also helps to ensure that the invoice is sent to the right person and department.

The critical contact information you should include for your client includes their name or business name, billing address, phone number, and email address.

If you’re working with a larger company, be sure to include the name of the person or department that will be responsible for paying the invoice.

Step 3: Add an Invoice Number and Date

Assigning invoice numbers can help you manage and locate them quickly. It also helps your client identify the invoice, especially if they receive multiple invoices from you.

The date on the invoice is also essential as it tells your client when the invoice was issued and provides them with a clear understanding of the payment timeline.

When adding the invoice number and date to your invoice, make sure that the number is unique and sequential and that the date is accurate.

Step 4: Itemize Your Product or Service

include the product or service in the invoice

By itemizing each product or service, you’re providing your client with a detailed breakdown of the work you’ve completed or the products you’ve provided.

This breakdown helps your client understand the value of your work and can reduce the likelihood of disputes or confusion later on.

When itemizing your product or service, including a description of the work or product, the quantity, the price per unit, and the total amount for each item.

If applicable, include any discounts or taxes that apply to the item.

Here are some tips to consider when itemizing your product or service on your invoice:

  • Include a detailed description of the product or service you’re providing.
  • Use clear and concise language while describing each item.
  • List each item separately and give a quantity and unit price for each.
  • Add a subtotal for all of the items listed and any applicable discounts.
  • Clearly state any taxes or fees that apply to the invoice.
  • Provide a total amount due, including taxes and fees.
  • Use a consistent format and layout for all of the items listed.
  • Double-check your calculations to ensure that the total amount due is accurate.
  • Provide any additional terms or conditions related to your product or service if necessary.
  • Ensure the invoice is easy to read and understand for your client.

Step 5: Add Payment Terms

Payment terms typically include the payment due date, the accepted payment methods, and late payment fees or discounts.

Setting clear payment terms, you’re helping your client understand when payment is expected and how to pay you.

When adding payment terms to your invoice, set a reasonable payment due date that gives your client enough time to pay you. Consider offering incentives for early payment or adding late fees for payments received after the due date.

Step 6: Include Your Terms and Conditions

Including your terms and conditions in your invoice protects your business and establishes clear guidelines for your clients.

Your terms and conditions should outline the responsibilities and obligations of both you and your client and should cover essential topics such as payment, refunds, cancellations, and liabilities.

Including your terms and conditions in your invoice sets clear expectations for your client and helps avoid misunderstandings or disputes. When creating your terms and conditions, make sure to be clear and concise and use language that is easy to understand.

Consider including a section for frequently asked questions or additional information that can help clarify any confusion.

Step 7: Review and Send

Double-check that you’ve included all the necessary contact information, payment terms, and itemized products or services.

Consider having a second pair of eyes review your invoice to ensure everything is accurate.

Once you’ve reviewed your invoice and made any necessary changes, it’s time to send it to your client.

Be sure to use a professional and polite tone in your email or message, and thank your client for their business. You can also consider attaching any additional documents or receipts that support the work you’ve done.

Final Thoughts

Creating an invoice may seem straightforward, but it’s essential to take the time to do it right. By following these steps and tips, you can ensure that your invoice is clear, concise, and professional, setting a positive tone for your business relationship with your client.

Remember to take the time to add your contact information, itemize your products or services, and include your payment terms and terms and conditions.

Doing so protects yourself and your business and demonstrates to your clients that you value their time and investment in your services.

Finally, carefully review and send your invoice, ensuring you communicate effectively and professionally.


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About The Author

Meet Josef, a seasoned Content Marketer, SEO Strategist, and Web Designer who has over a decade of experience helping entrepreneurs build and grow their online businesses. He is a trusted authority in the field of Marketing and Technology and is renowned for his in-depth knowledge and expertise in testing and recommending the best products to help businesses succeed.

Disclosure: Some of the links in this article may be affiliate links, which can provide compensation to me at no cost to you if you decide to purchase a paid plan. These are products I’ve personally used and stand behind. This site is not intended to provide financial advice and is for entertainment only. 

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