How to Create Invoices: The Complete Step-by-Step Guide

Contexte éditorial : cet article fait partie de notre série pratique sur la facturation des indépendants. Les recommandations sont à adapter selon votre pays, votre régime et le type de client.

What Is an Invoice?

An invoice is a formal document sent by a seller (you) to a buyer (your client) requesting payment for goods or services delivered. It is more than just a request for money — it is a legal record of the transaction that both parties can reference in case of disputes, audits, or tax filings.

Invoices differ from quotes and receipts:

• Quote / Estimate: Sent before work begins, showing the expected cost.
• Invoice: Sent after work is complete (or at agreed milestones), requesting payment.
• Receipt: Issued after payment is received, confirming the transaction is closed.

Why Getting Your Invoice Right Matters

A poorly structured invoice can delay payment, create disputes, or even void your right to collect in some jurisdictions. Here is what a professional invoice accomplishes:

• Establishes a clear payment obligation with dates and amounts
• Reduces back-and-forth with clients by answering all their questions upfront
• Creates an audit trail for your business finances
• Helps you track outstanding receivables and cash flow
• Satisfies legal requirements in most countries (VAT invoices, tax identification, etc.)

Step 1 — Choose Your Invoicing Method

Before you write a single word, decide how you will create and send your invoice. You have three main options:

Option A: Word or Google Docs (Not Recommended)

Many people start with a Word document or Google Doc template. This works for a first invoice but quickly becomes unmanageable. You have to manually track invoice numbers, calculate totals, and follow up on unpaid bills with no automation. It is also easy to make calculation errors.

Option B: Spreadsheet (Better, But Limited)

A spreadsheet in Excel or Google Sheets gives you automatic calculations. Still, it does not generate professional PDF invoices, lacks payment tracking, and requires you to send attachments manually. No online payment links either.

Option C: Dedicated Invoicing Tool (Best)

Tools like Invoicey let you create professional invoices in minutes, send them by email with a payment link, track who has viewed and paid, automate payment reminders, and generate PDF invoices that look polished every time. Most offer a free tier that covers the needs of most freelancers.

Step 2 — Include These Essential Invoice Fields

No matter which method you use, every invoice must contain these fields to be valid and enforceable.

1. Invoice Header

Clearly label the document as an "Invoice" at the top. This distinguishes it from a quote or statement and immediately tells your client what action is required.

2. Invoice Number

A unique invoice number is required in most countries and it is essential for your own record-keeping. Use a sequential format that is easy to reference:

• Simple: INV-001, INV-002, INV-003
• Date-based: INV-2026-001, INV-2026-002
• Client-prefixed: ACME-001, ACME-002 (useful if you bill many clients)

Never reuse or skip invoice numbers. Gaps can raise red flags during a tax audit.

3. Your Business Information

Include your full legal name or business name, address, email, and phone number. If you are VAT-registered or have a business registration number, include that too. This makes the invoice legally compliant in most jurisdictions.

4. Client Information

Include your client's full name or company name, billing address, and contact email. If your client is a business, ask for their VAT number / tax ID if you need it for your own filings. Having their correct billing details prevents "wrong entity" payment disputes.

5. Issue Date and Due Date

• Issue Date: The date you are sending the invoice.
• Due Date: The date by which payment must be received.

Common payment terms include:

• Net 7: Payment due 7 days after the invoice date (great for small, quick projects)
• Net 14: 14 days — a reasonable default for most freelancers
• Net 30: 30 days — standard for larger businesses and corporate clients
• Due on Receipt: Payment expected immediately (use for upfront payments)

Tip: Shorter terms get you paid faster. Unless your client contract specifies otherwise, start with Net 14 and adjust if clients push back.

6. Line Items — Description, Quantity, Rate, Amount

This is the core of your invoice. Each service or product delivered should be a separate line item with:

• Description: Be specific. "Website design — 5 pages, responsive" is better than "Design work."
• Quantity: Number of units, hours, or deliverables.
• Unit Rate: Price per unit or hour.
• Line Total: Quantity × Rate, auto-calculated.

Clear line items reduce client questions and disputes significantly. When clients understand exactly what they are paying for, they approve and pay faster.

7. Subtotal, Taxes, and Total

After all line items, show:

• Subtotal: Sum of all line item totals before tax.
• Discount (if applicable): Any agreed discount, shown as a line below the subtotal.
• Tax (VAT / GST / Sales Tax): Applied as a percentage of the subtotal. Show the tax rate (e.g., "VAT 20% — $400") and the tax amount separately.
• Total Due: The final amount your client owes. Make this number large and prominent — it should be the most visible figure on the page.

8. Payment Instructions

Tell your client exactly how to pay. Include all the methods you accept:

• Bank Transfer: Account name, bank name, account number, IBAN/SWIFT/routing number.
• Online Payment Link: A direct link to pay by card via Stripe, PayPal, or similar.
• Cheque: Payable to your business name, mailing address.

The fewer steps required to pay, the faster you will get paid. An online payment link can reduce your average payment time from 14 days to 3–4 days.

9. Notes and Terms (Optional but Valuable)

The notes section is underused. You can include:

• A genuine thank-you ("Thank you for your business — it has been great working with you!")
• Late payment terms ("A 1.5% monthly fee applies to invoices unpaid after 30 days")
• Revision scope if applicable
• A reference to your contract or project number

Step 3 — Format Your Invoice Professionally

A professional-looking invoice does not just signal quality — it signals that you take your business seriously. Here are the fundamentals of good invoice design:

Typography & Readability

• Use a single, clean font family (e.g., Inter, Helvetica, or your brand font)
• Invoice number, total due, and client name should be the most visually prominent elements
• Use consistent font sizes: headings at 14–16px, body at 12–13px, helper text at 10–11px
• Generous white space makes the invoice scannable — do not crowd elements together

Color & Branding

• Add your logo in the top corner
• Use your brand color as an accent (header bar, total highlight, section labels)
• Keep the invoice mostly white/light — it needs to print cleanly

Structure and Visual Hierarchy

The reader's eye should flow naturally:

1. Logo + Invoice number (identify what this is)
2. Your contact info + client billing info (who is involved)
3. Issue date + due date (when)
4. Line items (what for)
5. Total due (how much)
6. Payment instructions (what to do now)

Step 4 — Handle Tax Correctly

Tax on invoices depends on where you and your client are located, your revenue level, and the type of service. Here is a quick overview of the most common scenarios:

VAT (Value Added Tax) — EU, UK, Australia, etc.

If you are VAT-registered, you must charge VAT on your invoices and include your VAT registration number. The VAT rate varies by country (e.g., 20% in the UK, 21% in Germany, 10% in Australia as GST). If both you and your client are VAT-registered businesses in two different EU countries, the reverse charge mechanism may apply — consult a local accountant.

Sales Tax — United States

In the US, sales tax rules vary by state and product/service type. Many services (especially digital) are not taxable in most states, while physical goods typically are. If in doubt, consult a US CPA.

Self-Employed / Sole Trader

If you are below your country's VAT registration threshold (e.g., £90,000 in the UK or €85,000 in France), you do not charge VAT. Your invoice simply shows your prices without any tax line.

Step 5 — Send the Invoice

How you send an invoice affects how quickly you get paid. Here are your options:

Email with PDF Attachment

The most common method. Export your invoice as a PDF and attach it to a professional email. Use a clear subject line like: "Invoice #INV-2026-001 — $2,500 due May 12, 2026 — Acme Design Studio". This format includes all key info so the client does not even need to open the attachment to know the basics.

Email with Online Payment Link

The fastest-paying method. Send a link to a hosted invoice page where clients can view and pay in one click. Tools like Invoicey generate these automatically. Studies consistently show that invoices with online payment links are paid 2–3x faster than those requiring bank transfers.

Physical Mail

Still required by some enterprise clients and government agencies. Print your invoice, sign if required, and mail with delivery confirmation for any amount over $1,000.

Within a Client Portal

Some businesses give clients access to a self-service portal where they can view all invoices, download PDFs, and pay. This reduces email overhead and is especially useful when you have recurring clients.

Step 6 — Follow Up on Unpaid Invoices

Even perfect invoices sometimes go unpaid — not always because the client intends to avoid payment, but because invoices get buried in inboxes. Here is a simple follow-up cadence:

When	Action	Tone
3 days before due date	Friendly payment reminder	Warm, helpful
1 day after due date	First overdue notice	Polite, factual
7 days overdue	Second overdue notice	Firm but professional
14 days overdue	Final notice with late fee applied	Formal, reference contract
30+ days overdue	Consider collections / small claims	Formal legal language

Invoicey automates this entire follow-up sequence so you never have to chase payments manually.

Step 7 — Keep Records and Stay Organised

Every invoice you issue should be filed systematically. Most countries require you to keep financial records for 5–7 years. Here is how to stay organised:

• Folder structure: Year > Client Name > Invoice PDFs. Simple and searchable.
• Accounting software sync: If you use QuickBooks, Xero, or FreshBooks, connect your invoicing tool so invoices sync automatically.
• Monthly reconciliation: At the end of each month, review all issued invoices, mark which are paid and which are outstanding, and calculate your accounts receivable balance.
• Annual summary: Export all paid invoices for the year to share with your accountant at tax time.

Common Invoicing Mistakes to Avoid

Even experienced freelancers make these errors. Watch out for them:

• Vague descriptions: "Consulting services" tells your client nothing. Be specific about what was delivered.
• Missing payment details: If your client cannot figure out how to pay, they will not pay promptly. Always include bank details or a payment link.
• Wrong client name or address: Many corporate clients cannot process invoices with incorrect entity names. Confirm billing details before you send.
• No invoice number: This makes record-keeping impossible and can complicate your tax filings.
• No due date: Without a due date, "please pay soon" is your only leverage. Always specify when payment is expected.
• Sending too late: Invoice immediately when work is complete or at agreed milestones. Every day you delay is a day added to when you get paid.
• Not following up: Nearly 30% of late invoices are late simply because the client forgot. A single reminder email often resolves it immediately.

Invoice Templates: Where to Start

The fastest way to create your first professional invoice is to start from a template. A good template gets the structure right from the start and simply requires you to fill in the details.

At Invoicey, we offer a library of professionally designed invoice templates for every type of business — from freelance designers and developers to contractors, agencies, consultants, and creative studios. Each template is fully customisable and exports as a pixel-perfect PDF.

Some popular template styles include:

• Classic Clean: Timeless, minimal, works for any industry
• Modern Bold: Strong typographic hierarchy, great for agencies
• Creative Studio: Expressive design with colour accents
• Corporate Formal: Structured layout, ideal for enterprise billing
• Simple One-Page: Perfect for quick single-service invoices

Frequently Asked Questions

How do I create an invoice for free?

You can create invoices for free using Invoicey's free plan, which includes unlimited draft invoices, professional PDF export, and email delivery. No credit card required. Many freelancers use the free tier indefinitely for their invoicing needs.

What is the difference between an invoice and a bill?

They refer to the same document from different perspectives. You issue an invoice; your client receives it as a bill. In practice, both terms are used interchangeably in business communication.

Do I need to sign an invoice?

In most countries, electronic invoices do not require a physical signature to be legally valid. A digital stamp, your business name, or an e-signature service can add an extra layer of formality, but it is typically not required by law for standard business invoices.

Can I invoice without a registered business?

Yes. Sole traders, freelancers, and independent contractors can invoice clients using their personal name and contact details. You do not need to be a registered company to issue a valid invoice. Just make sure you are declaring the income for tax purposes.

How do I handle a client that disputes an invoice?

First, review the original scope of work or contract. If the client disputes a charge that was agreed in writing, share that documentation calmly and professionally. If the dispute is legitimate, consider issuing a credit note for the reduction and a revised invoice for the agreed amount. Keeping all agreements in writing from the start of a project dramatically reduces disputes.

What is a credit note and when do I use it?

A credit note is a document that reduces or cancels a previously issued invoice. You issue a credit note when: you overcharged a client, work was not completed, a refund was agreed, or you need to void and reissue an invoice with corrections. Credit notes keep your books accurate while maintaining the original invoice trail.

Your Next Invoice Starts Here

Creating a great invoice does not take long once you know what to include. The key steps are:

1. Choose a professional invoicing tool or template
2. Fill in all essential fields: invoice number, dates, your info, client info, line items, totals, and payment instructions
3. Format it cleanly with your branding
4. Send it promptly with a payment link
5. Follow up automatically if it goes unpaid
6. Keep organised records for tax time

The better your invoicing process, the healthier your cash flow — and the more professional impression you leave with every client. Start creating your first invoice now with Invoicey — it takes less than two minutes.