How to Create Your First Invoice as a Freelancer (A Step-by-Step Guide)
Getting paid is the best part of any freelance project, but creating that first invoice can feel daunting. What should you include? What does a professional invoice even look like? Don't worry, we've got you covered.
Did you know? Research shows that 85% of freelancers experience late invoice payments at least some of the time, with an average delay of 13 days past the due date. The good news? A professional, detailed invoice significantly reduces payment delays.
This step-by-step guide will walk you through everything you need to know to create a clear, professional freelance invoice template that helps you get paid on time.
Why a Good Invoice Matters
A professional invoice does more than just ask for money. It:
- Reinforces your brand: It's another touchpoint for your client to see your professionalism.
- Acts as a legal document: It's a record of the services rendered and the payment owed.
- Prevents disputes: A clear breakdown of charges leaves no room for confusion.
- Speeds up payment: When a client knows exactly what they're paying for and how to pay, they're more likely to pay quickly.
Step 1: Start with a Professional Header
The top of your invoice should clearly state "Invoice" to distinguish it from a quote or receipt. Your header should also include:
- Your Business Name & Logo: If you have a logo, use it! It makes your invoice look polished.
- Your Contact Information: Include your name, address, phone number, and email.
Step 2: Add Your Client's Information
Clearly list your client's name and address. This ensures the invoice goes to the right person and is crucial for record-keeping on both sides.
Step 3: Assign a Unique Invoice Number
Every invoice needs a unique identifier. This helps you and your client track payments. A simple system is to start with 001 and count up, or you can use a date-based format like YYYY-MM-DD-01. The key is to be consistent.
Pro Tip: A tool like InvoiceCat automatically generates unique invoice numbers for you, so you never have to worry about duplicates.
Step 4: Include Important Dates
Your invoice should have two key dates:
- Invoice Date: The date you're sending the invoice.
- Due Date: When the payment is due. Common terms are "Net 15" (due in 15 days) or "Net 30." Be sure to agree on payment terms with your client beforehand.
Step 5: Itemize Your Services
This is the core of your invoice. Create a clear, itemized list of the services you provided. For each service (or "line item"):
- Provide a brief description: E.g., "Website Design - Homepage Mockup" or "Blog Post - 1,000 words."
- List the quantity and rate: This could be hours worked and your hourly rate, or a flat project fee.
- Calculate the total for each line item.
Being detailed here prevents back-and-forth emails from clients asking what they're paying for.
Examples of Good Line Items:
- "Content Writing: 5 blog posts × $150 each = $750"
- "Logo Design: Initial concepts and revisions = $800"
- "Consulting: 10 hours × $100/hour = $1,000"
- "Social Media Management: January 2025 (monthly retainer) = $1,200"
Pro Tip: If you worked on a project over several weeks, break down the work by task or deliverable rather than by date. This makes it easier for clients to understand the value provided.
Step 6: Calculate the Total Amount Due
At the bottom of your itemized list, calculate the subtotal. Then, add any applicable taxes or discounts. The final number should be clearly labeled as "Total Due" or "Amount Due."
Step 7: Specify Payment Terms and Methods
Don't make your client guess how to pay you! Clearly state your accepted payment methods. Common options include:
- Bank Transfer (provide your account details)
- Credit Card
- Online payment services like PayPal or Stripe
Including payment terms (like the due date and any late fees) is also essential.
Step 8: Add a Personal Thank You Note
A simple "Thank you for your business!" or "I appreciate the opportunity to work with you" adds a nice, human touch and helps build a strong client relationship.
Quick Invoice Checklist
Before sending your invoice, make sure you've included:
- "Invoice" clearly labeled at the top
- Your business name, logo, and complete contact information
- Client's name and billing address
- Unique invoice number
- Invoice date and payment due date
- Itemized list of services with descriptions
- Quantity, rate, and total for each line item
- Subtotal, taxes (if applicable), and total amount due
- Accepted payment methods with instructions
- Payment terms and any late fee policies
- Thank you note or professional closing
Common Invoice Mistakes to Avoid
Even experienced freelancers make these mistakes that can delay payment:
1. Vague Service Descriptions
Avoid: "Design work - $500"
Better: "Logo design including 3 concepts and 2 revision rounds - $500"
2. Missing or Inconsistent Invoice Numbers
Without proper numbering, tracking payments becomes a nightmare. Start with invoice #001 and never skip a number, even if a project gets cancelled.
3. No Clear Due Date
"Due upon receipt" is vague. Use specific dates like "Payment due by January 15, 2025" or standard terms like "Net 15" or "Net 30."
4. Unclear Payment Instructions
Don't make clients hunt for how to pay you. List all accepted methods with clear instructions, account numbers, or payment links.
5. Forgetting to Save Copies
Always keep copies of every invoice you send. They're essential for tax purposes and resolving disputes.
What If Your Client Doesn't Pay On Time?
Despite your best efforts, payment delays happen. Here's what to do:
Week 1 After Due Date: Send a friendly reminder email. Often, invoices simply get overlooked.
Week 2: Follow up with a more direct email or phone call. Reiterate the due date and ask if there are any issues with the invoice.
Week 3-4: Send a formal late payment notice. Reference your payment terms and mention any late fees if applicable.
Beyond 30 Days: Consider pausing work on ongoing projects and discuss a payment plan. For significant amounts, you may need to consult a lawyer or collection agency.
Prevention is key: Always discuss payment terms upfront and consider requiring a deposit for larger projects.
Ready to Create Your First Invoice?
Creating an invoice from scratch can be a hassle. You have to worry about formatting, formulas, and making sure you've included everything.
That's where InvoiceCat comes in. Our free invoice generator handles all the details for you. Just plug in your information, and you'll have a professional, beautiful invoice in seconds. No more spreadsheets or Word documents.
Save time, look professional, and get paid faster with InvoiceCat.
Frequently Asked Questions (FAQ)
How do I create an invoice for the first time?
Start with a free invoice template or generator like InvoiceCat. Include your business details, client information, unique invoice number, date, itemized services, total amount due, and payment terms. Always save a copy for your records.
What should be included in a freelance invoice?
Every freelance invoice should contain: your contact information, client details, unique invoice number, invoice and due dates, detailed description of services, quantity and rates, subtotal and total amounts, accepted payment methods, and payment terms.
How do freelancers get paid?
Freelancers typically get paid through bank transfers, PayPal, Stripe, credit cards, or platforms like Wise or Payoneer. List your preferred payment methods clearly on your invoice and provide necessary account details or payment links.
Should I invoice before or after work?
This depends on your agreement with the client. For larger projects, it's common to invoice 25-50% upfront, with the remainder due upon completion. For smaller projects, invoicing after delivery is typical. Always establish payment terms before starting work.
Can I send an invoice as a PDF?
Yes, and you should. PDF is the standard format for invoices as it preserves formatting across all devices and prevents accidental editing. It also looks more professional than a Word document.
What is a reasonable payment term for freelancers?
Net 30 (payment due within 30 days) is the industry standard for freelancers. However, many freelancers use Net 15 or even "Due upon receipt" for smaller projects. Choose terms that work for your cash flow needs and discuss them with clients upfront.
Do I need to include tax on my invoice?
This depends on your location and business structure. In many countries, registered businesses must charge VAT or sales tax. Consult with a tax professional in your area to understand your obligations.
How do I follow up on an unpaid invoice?
Wait until 3-5 days after the due date, then send a polite reminder email. If there's no response after a week, follow up with a phone call. For invoices over 30 days late, send a formal late payment notice and consider pausing ongoing work.