Congratulations—you landed your first freelance client! You've done the work, delivered great results, and now it's time to get paid. But how exactly do you send an invoice? What should it include? When should you send it? And what happens if the client doesn't pay?
This guide walks you through every step of freelance invoicing, from creating your first invoice to dealing with late payments. By the end, you'll know exactly how to invoice like a professional.
Why Proper Invoicing Matters
A professional invoice is more than just a payment request—it's:
- Legal protection: Proof that work was performed and payment is owed
- Tax documentation: Required for reporting income and filing taxes
- Professionalism signal: Shows you're serious and experienced
- Payment accelerator: Clear invoices get paid faster
- Accounting record: Helps you track income and manage cash flow
Conversely, a poorly written or missing invoice can delay payment, create confusion, and make you look like an amateur.
Step-by-Step: Creating Your First Invoice
Set Up Your Business Information
Before creating your first invoice, gather your business details. You'll use these on every invoice:
- Your full name or business name (if registered)
- Complete address (street, city, state/province, postal code, country)
- Email address (professional: [email protected])
- Phone number
- Tax ID or business registration number (if applicable)
- Logo (optional but recommended)
💡 Pro Tip: Create a professional email address if you haven't already. [email protected] looks far more professional than [email protected].
Choose Your Invoice Numbering System
Every invoice needs a unique number for tracking. Choose a system and stick with it:
- Simple sequential: 001, 002, 003, 004...
- Year + sequential: 2026-001, 2026-002 (resets each year)
- Date-based: 20260209-01 (YYYYMMDD-sequence)
- Client-specific: ACME-001, XYZ-001 (separate sequence per client)
Important: Never reuse invoice numbers. Each must be unique for accounting and tax purposes.
Gather Client Information
You'll need complete details about who you're billing:
- Client's full name or company name
- Billing address
- Contact person (if invoicing a company)
- Email address for invoice delivery
- Purchase order number (if client provided one)
Itemize Your Work
List everything you're billing for with clear descriptions:
- Description: Specific details of what was delivered
- Quantity: Hours worked, items delivered, days, etc.
- Rate: Your hourly rate, per-item price, or flat fee
- Amount: Quantity × Rate
Calculate Totals
Break down the math clearly:
- Subtotal: Sum of all line items
- Discounts: Any agreed-upon reductions (e.g., early payment discount)
- Tax: Sales tax, VAT, or GST if applicable in your jurisdiction
- Total Amount Due: The final number (display prominently)
💡 Pro Tip: Double-check your math before sending. Simple calculation errors look unprofessional and delay payment while you send a corrected invoice.
Set Payment Terms
Clearly state when and how you expect to be paid:
- Due date: Specific date (e.g., "Due by March 15, 2026") or terms (e.g., "Net 30")
- Payment methods: Bank transfer, PayPal, credit card, check—list all options
- Payment details: Bank account info, PayPal email, payment portal link
- Currency: Specify if working with international clients
- Late fees: Optional but recommended (e.g., "1.5% monthly interest on overdue balances")
⚠️ Important: Payment terms should be discussed BEFORE starting work, not sprung on clients in the invoice. Include them in your contract or initial agreement.
Add Professional Touches
These details elevate your invoice from functional to professional:
- Logo: Your brand at the top of the invoice
- Thank you message: "Thank you for your business!"
- Project reference: "Re: Website Redesign Project"
- Notes section: Any project-specific details or special terms
- Professional design: Clean layout, readable fonts, appropriate colors
Send Your Invoice
How and when you send matters:
- Timing: Send immediately after work is complete (within 24 hours)
- Format: Always send as PDF (maintains formatting, looks professional)
- File name: Clear and professional (e.g., "Invoice-2026-001-ClientName.pdf")
- Email subject: "Invoice #2026-001 from [Your Name] - Due March 15"
- Email body: Personalized message, not just "invoice attached"
When to Invoice
Standard Invoicing Timeline
- One-time projects: Invoice immediately upon completion and delivery
- Milestone-based projects: Invoice when each agreed milestone is reached
- Hourly work: Invoice weekly, bi-weekly, or monthly (depending on agreement)
- Retainer clients: Invoice at the start or end of each billing period (monthly)
- Product sales: Invoice at time of sale or delivery
Deposits and Partial Payments
For larger projects (over $3,000), consider requesting payment in stages:
- 50% upfront, 50% on completion (most common)
- 30% upfront, 30% midway, 40% on completion (long projects)
- Milestone-based: 25% at each of 4 major milestones
💡 Pro Tip: Always get at least 50% upfront for new clients. This protects you from scope creep, client disappearance, and proves the client is financially committed to the project.
Common Invoicing Mistakes to Avoid
❌ Mistake #1: Waiting Too Long to Invoice
The Problem: Invoicing a week or month after completing work means you wait even longer to get paid.
The Fix: Invoice within 24 hours of delivery. The sooner you invoice, the sooner you get paid.
❌ Mistake #2: Vague Descriptions
The Problem: "Design work - $2,000" doesn't tell the client what they're paying for.
The Fix: Be specific: "Logo design including 3 initial concepts, 2 revision rounds, and final files in AI, EPS, PNG, JPG formats."
❌ Mistake #3: Forgetting to Include Payment Instructions
The Problem: Client wants to pay but doesn't know how.
The Fix: Include all accepted payment methods with complete details (bank account, PayPal email, payment portal link).
❌ Mistake #4: No Payment Terms
The Problem: Without stated terms, clients assume they can pay whenever convenient for them.
The Fix: Always include "Net 30" or a specific due date. Specify consequences for late payment.
❌ Mistake #5: Unprofessional Email Address
The Problem: [email protected] on an invoice makes you look unprofessional.
The Fix: Use [email protected] or [email protected].
What to Do If a Client Doesn't Pay
Follow-Up Strategy
Most late payments aren't intentional—clients are busy and forget. Follow up systematically:
- 5 days before due date: Friendly reminder email
- Due date: Second friendly reminder
- 1 week overdue: Direct but polite follow-up
- 2 weeks overdue: Phone call + email
- 3 weeks overdue: Final notice before escalation
- 30+ days overdue: Consider collections or legal action
⚠️ Important: Always remain professional in follow-ups. Aggressive or rude communication damages relationships and can make clients less likely to pay.
Essential Invoicing Checklist
Before Sending Every Invoice:
- Your business information is complete and current
- Client information is accurate
- Invoice number is unique and follows your system
- Invoice date and due date are clearly stated
- Work is itemized with specific descriptions
- All calculations are correct (double-checked)
- Tax is calculated and included (if applicable)
- Payment terms are clearly stated
- Payment methods and instructions are included
- No typos or grammatical errors
- Saved as professional-looking PDF
- File name is clear and professional
Tools and Resources
Invoice Generators
Creating invoices manually in Word or Excel is time-consuming and error-prone. Use dedicated tools:
- FreeInvoicePDF.org: Fast, free, no account needed, privacy-focused
- Wave: Free accounting software with invoicing
- PayPal Invoicing: If you use PayPal for payments
Payment Processors
Make it easy for clients to pay you:
- PayPal: Widely accepted, easy for clients
- Stripe: Professional, lower fees, credit card processing
- Wise (formerly TransferWise): Great for international payments
- Bank transfer: No fees, but slower
Tax Considerations
Keep Invoice Records
Invoices are tax documents. You need them to:
- Report income on your tax return
- Prove business revenue if audited
- Track payments received vs. outstanding
- Apply for loans or credit
Retention period: Keep invoice records for at least 7 years (check your local requirements).
Sales Tax / VAT
Depending on your location and services:
- US: Sales tax varies by state; some services are exempt
- EU: VAT applies; must be VAT-registered if revenue exceeds threshold
- Canada: GST/HST applies to most services
- UK: VAT registration required if turnover exceeds £85,000
Consult a tax professional to understand your specific obligations.
Key Takeaways
- Invoice immediately after completing work—don't wait
- Be specific in descriptions—vague line items cause confusion
- Include clear payment terms—when and how you expect to be paid
- Make payment easy—offer multiple payment options with direct links
- Follow up proactively—most late payments just need a reminder
- Keep records—invoices are tax documents, retain them for 7+ years
- Use professional tools—invoice generators save time and look better
- Discuss payment terms upfront—before starting work, not in the invoice
Create Your First Invoice in 60 Seconds
Professional invoice generator with all essential elements included. No signup, no watermark, completely free forever.
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