InvoiceFree

The complete invoice guide

Everything you need to know about creating professional invoices — from what to include, to how to get paid faster.

What is an invoice?

An invoice is a formal document sent by a seller to a buyer, requesting payment for goods or services delivered. It serves as both a payment request and a legal record of the transaction for accounting and tax purposes.

Invoices differ from receipts: an invoice is sent before payment (requesting payment), while a receipt is issued after payment (confirming payment was received).

What every invoice must include

While requirements vary by country, a professional invoice typically includes these fields:

  • Your name or business name and contact details
  • Client name and billing address
  • A unique invoice number
  • Invoice date and payment due date
  • Itemized list of goods or services provided
  • Quantity and unit price for each line item
  • Subtotal, taxes, and total amount due
  • Payment instructions (bank details, PayPal, etc.)

Types of invoices

Standard invoice

The most common type — issued after delivering goods or services, requesting payment within a set timeframe.

Pro forma invoice

A preliminary invoice sent before delivery, used to outline expected costs. Common in international trade.

Recurring invoice

Automatically repeated on a schedule (weekly, monthly, etc.) for ongoing services like retainers or subscriptions.

Credit note

Issued to cancel or partially reverse a previously sent invoice, typically due to returns or overcharging.

Progress invoice

Sent at project milestones to request partial payment before the final delivery.

6 tips to get paid faster

1

Send invoices promptly

Invoice as soon as a project milestone or delivery is complete. The longer you wait, the longer you wait to get paid.

2

Use clear payment terms

State explicitly when payment is due. "Net 30" is standard, but many freelancers use "Net 14" or even "Due on receipt" for smaller amounts.

3

Number invoices consistently

Use a consistent numbering format (e.g., INV-0001). This makes it easy to track invoices and reference specific ones in communications.

4

Include payment instructions

Don't make clients hunt for how to pay you. Include your bank account details, PayPal address, or payment link directly on the invoice.

5

Follow up on late payments

Send a friendly reminder 1–2 days before the due date, then follow up the day after if unpaid. Most late payments are simply forgotten, not intentional.

6

Keep copies of all invoices

Maintain records for tax purposes. InvoiceFree saves all your invoices automatically — export to CSV or Excel for your accountant.

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