What goes on an invoice

An invoice is a document you send to someone who owes you money. It lists what you did or sold, how much it costs, and when payment is due. The person receiving it uses it to process payment through their accounting system—and you use it as proof of the transaction if there's a dispute later.

Every invoice needs: your name and contact information (email or phone), the date you created it, a unique invoice number, the customer's name and address, a description of what you're charging for, the amount due, and your payment instructions (bank account, PayPal, Venmo, or mailing address for a check). If you're a business, include your business name and tax ID if you have one.

The invoice number matters more than it sounds. Use a simple system: Invoice 001, Invoice 002, and so on. This makes it easy to track which invoices you've sent, which ones are paid, and which ones are overdue. If you send multiple invoices to the same person, the number keeps them separate in their records too.

Key Takeaways

  • An invoice must include your contact details, a unique number, the customer's name, a description of work or goods, the total amount, and how to pay you.
  • You can create an invoice by hand, in a spreadsheet, or using free templates from Google Docs, Microsoft Word, or invoice software like Wave or Square Invoices.
  • Send the invoice as soon as the work is done or the goods are delivered, and specify a due date—typically 15 to 30 days from the invoice date.
  • Keep a copy of every invoice you send, mark it paid when money arrives, and follow up on unpaid invoices after the due date passes.
  • If payment is late, send a reminder email first; if it stays unpaid after 30 days, consider small claims court or a payment plan with the customer.

Three ways to create an invoice

By hand or in a spreadsheet: Write or type the information above into a document, save it as a PDF, and email it. This works for one-off invoices or if you only send a few per month. Use a spreadsheet (Google Sheets or Excel) if you want to keep all your invoices in one place and track which ones are paid.

Using a free template: Google Docs and Microsoft Word both have invoice templates you can download and fill in. Search "invoice template" in either platform, pick one you like, and replace the sample text with your details. Templates save time if you send invoices regularly because the format is already set up.

Using invoice software: Wave, Square Invoices, and Zoho Invoice are free or low-cost tools that create invoices, track payments, and send reminders automatically. These work best if you invoice multiple customers or want to see at a glance which invoices are overdue. Most let you accept payment directly through the invoice—the customer clicks a link and pays by card or bank transfer.

When to send the invoice and what due date to set

Send the invoice as soon as the work is finished or the goods are delivered. Don't wait. The sooner it reaches the customer, the sooner they can process it and the sooner you get paid.

Set a due date 15 to 30 days from the invoice date. For example, if you invoice on January 10, the due date might be January 25 or January 31. This gives the customer time to receive it, review it, and process payment without being unreasonable. If you're invoicing a business, 30 days is standard. For individuals or small jobs, 15 days is common.

Write the due date clearly on the invoice. Some people miss it if it's small or buried in the text. Put it near the total amount so it's hard to overlook.

How to get paid once you've sent the invoice

Tell the customer how to pay you. List every method you accept: bank transfer (include your routing and account number, or ask them to request it), PayPal, Venmo, check, or cash. The more options you give, the faster they'll pay—some people don't have a bank account set up for transfers but can send a check, or vice versa.

If you use invoice software, the customer can often pay directly through the invoice by clicking a payment button. This is the fastest route because they don't have to ask you for your details or remember to send payment separately.

Keep a record of when payment arrives. Mark the invoice paid in your spreadsheet or software, note the date and method (check, transfer, card), and save any confirmation (bank notification, PayPal receipt). This protects you if there's ever a question about whether you were paid.

What to do if an invoice goes unpaid

After the due date passes with no payment, send a friendly reminder email. Keep it short: "Hi [name], I wanted to check in on invoice [number] for [amount], due on [date]. Did you receive it? Let me know if you have questions or need a copy." Many invoices are simply overlooked, and a reminder often brings payment within a few days.

If there's still no response after 7 to 10 days, send a second email. This time, be more direct: "Invoice [number] is now [number] days overdue. Please send payment by [new date] or contact me to discuss." Give them a specific new deadline—usually 5 to 7 days out.

If payment doesn't arrive after 30 days overdue, you have options. You can offer a payment plan (half now, half in two weeks), accept a partial payment to keep the relationship going, or pursue the debt through small claims court if the amount is large enough to justify the filing fee. Small claims court handles disputes under a certain amount—usually $5,000 to $10,000 depending on your state—and you can file without a lawyer. Bring your invoice, proof you sent it, and any emails or texts about the debt.

Protecting yourself with invoice terms

Add a line to your invoice that says what happens if payment is late. For example: "Payment due by [date]. A late fee of $[amount] or [percentage]% will be charged for payments received after [number] days." This discourages late payment and gives you a way to recover some of the cost of chasing the debt.

Check your state's laws before adding a late fee. Some states cap how much you can charge, and some require you to disclose the fee in writing before the customer agrees to it. For most small transactions, a simple statement like "Late payments subject to a $25 fee after 15 days" is enough.

If you're invoicing a business, ask about their payment terms upfront. Some large companies pay in 60 days as standard, and you need to know that before you agree to the job. Smaller businesses and individuals usually pay in 15 to 30 days.

Invoices for different payment methods

The invoice itself doesn't change based on how you're paid, but your payment instructions do. If you're accepting a bank transfer, include your routing number and account number (or tell them to ask you for it—don't post it publicly). If you're accepting PayPal, include your PayPal email. If you want a check, include your mailing address.

If you're using a payment app like Square Cash or PayPal, you can generate a payment link and include it on the invoice. The customer clicks the link, enters the amount, and pays by card or bank transfer. This is faster than asking them to send you money manually because they don't have to remember your details.

For large invoices or repeat customers, consider asking for a deposit upfront—usually 25% to 50% of the total—before you start work. This protects you if the customer changes their mind or can't pay the full amount later. Include the deposit amount and due date on the invoice, and note that the remaining balance is due on completion.

Frequently Asked Questions

Do I need a business license to send an invoice?

No. You can invoice for work or goods without a business license. However, if you're running a regular business and making significant income, your state or local government may require you to register. Check your local small business office or your state's revenue department website to see what applies to you.

What if the customer disputes the invoice after they pay?

Keep your invoice and any proof of work—photos, emails, receipts, or a signed agreement about what you were doing. If they claim they didn't authorize the charge or that the work wasn't done, you can show this proof to your bank or payment processor. If you used a credit card processor like Square, they have a dispute process; if it was a bank transfer, contact your bank. Having documentation makes it much easier to win a dispute.

Can I invoice someone for a partial payment?

Yes. If you're doing a large project, you can send multiple invoices—one for the deposit, one for the first phase of work, one for the final phase. Each invoice gets its own number and due date. This spreads out payment and protects you if the customer backs out partway through.

What's the difference between an invoice and a receipt?

An invoice is sent before or at the time of payment to request money. A receipt is sent after payment to confirm it was received. You send an invoice first; once they pay, you send a receipt or mark the invoice paid and send them a copy.

How long should I keep invoices?

Keep copies of every invoice you send for at least three to seven years. This protects you if there's a tax question, a dispute, or a customer claims they never received it. Store them in a folder on your computer or in cloud storage like Google Drive so you can find them quickly.