What to include on an invoice

The invoice checklist

1. 1

   A clear heading

   Title the document “Invoice” so it can't be mistaken for a quote, an estimate or a receipt. Some places expect a specific title, so check the rules where you do business.

2. 2

   Your business details

   Your name or business name, address and contact details, so your client knows who the invoice is from and how to reach you. Add a tax or business registration number if you need to show one.

3. 3

   Your client's details

   The name and address of the person or company you're billing. For a company, a contact name or department helps the invoice reach the right person.

4. 4

   A unique invoice number

   Give every invoice its own number and never reuse one. A simple sequence such as INV-0001, INV-0002 makes invoices easy to find and to refer to in emails and payments.

5. 5

   The issue date and due date

   The issue date shows when the invoice was sent; the due date tells your client when you expect payment. You can give payment terms instead, such as Net 30: due 30 days after the issue date.

6. 6

   Itemized products or services

   Put each product or service on its own line with a short, specific description, so your client can match it to what they ordered or received.

7. 7

   Quantities and rates

   For each line, show how many (hours, days or units), the price per unit and the line amount, so every figure can be checked.

8. 8

   Subtotal, discounts and taxes

   Show the subtotal, then any discount and any tax you charge, with its rate. Whether you charge tax, and at what rate, depends on where you and your client are and what you sell.

9. 9

   The total amount due

   Make the final amount easy to find and show its currency, especially when you bill clients in other countries.

10. 10

    Payment terms, methods and notes

    Say how to pay you, such as bank details or a payment link, and any terms you apply, such as a late fee. A short note, like a project name or purchase order number, helps your client process the invoice.

Before you send an invoice

A last check takes a minute:

• names and addresses are spelled correctly, and the invoice goes to the person who approves or pays it;
• the invoice number is new and the dates are right;
• every line matches the work or goods you agreed on, with the right quantity and rate;
• the discount, tax and total add up, in the right currency;
• your payment details are complete and up to date;
• you have kept a copy, such as a PDF, for your records.

Common invoice mistakes

• Vague descriptions. “Services” on its own is hard to approve; say what you did and for which period.
• Missing or repeated invoice numbers. They make invoices hard to track, for you and for your client.
• No due date or payment terms. Without them, your client can't tell when you expect to be paid.
• Missing payment details. Your client has to ask how to pay you before they can pay.
• Totals that don't add up. A calculation error usually means sending a corrected invoice.