How to Make an Invoice (With a Free Template)
Updated
An invoice is a request for payment. A clear one gets paid faster, because the client's accounts team can approve it without coming back to you with questions. This guide covers what to include and the order to do it in. If you want to follow along, open the free invoice generator in another tab.
1. Put your business details at the top
Start with your business or trading name, address, email and phone number. If you are registered for VAT, GST or sales tax, include the registration number: in many countries an invoice without it is not a valid tax invoice. Add your logo so the document is recognisable in a crowded inbox.
2. Add the client's details
Use the client's legal company name and billing address, not just a contact's name. For larger companies, ask whether they need a purchase order (PO) number on the invoice. Invoices without one are often sent straight back.
3. Give it a unique invoice number
Number invoices sequentially, for example INV-0001, INV-0002. Tax authorities expect an unbroken sequence, and it makes it easy to refer to a specific invoice in emails. Some businesses add the year (INV-2026-014) or a client code. Never reuse a number, even for a cancelled invoice; issue a credit note instead.
4. Set the invoice date and due date
The invoice date is the day you issue it. The due date is when payment is expected, normally derived from your payment terms. “Net 30” means 30 days after the invoice date. Writing an actual date (“Due 11 Dec 2026”) next to the terms removes any doubt. See payment terms explained.
5. Itemise the work
Give each product or service its own line with:
- a description specific enough that someone who wasn't in the meetings understands it,
- the quantity (hours, units, days),
- the rate per unit, and
- the line total.
“Website redesign: 5 page templates, mobile layouts” gets approved faster than “Design work”.
6. Add tax, discounts and shipping
Show the subtotal, then any discount, then tax, then shipping. Tax is normally calculated on the price after discount. State the tax rate as well as the amount (for example “VAT 20%”).
7. Explain how to pay
Put bank details, a payment link or accepted methods in the notes. The fewer steps it takes to pay you, the sooner you get paid. If you charge late fees, say so in the terms, and check they are allowed where your client is based.
8. Send it as a PDF
PDFs look the same on every device and can't be edited by accident. Name the file clearly (Invoice-INV-0042.pdf) and send it to the person who pays, not only the person you worked with.
Common mistakes that delay payment
- Missing PO number or wrong billing entity
- No due date, or terms that don't match the contract
- Vague line items that need clarification
- Sending to a contact who doesn't handle payments
- Missing tax ID where one is legally required