Quick Takeaway
To make an invoice, list your business details and the client’s, add a unique invoice number, the issue date and due date, then each product or service with quantity, price and line total. Show the subtotal, any discount and tax, the total due and clear payment instructions, then send it as a PDF.
Key takeaways
- Every invoice needs a unique number, both parties’ details, dates, itemized lines, totals and payment instructions.
- Use a simple sequence for invoice numbers (INV-0001, INV-0002) and never reuse one.
- Tax is usually calculated on the amount after discounts; check the rules for your country and business.
- Clear payment terms and complete payment details are the easiest way to get paid on time.
- Send invoices as PDFs and keep a copy of each one in your records.
An invoice is more than a request for money. It is a record for your accounts, often a document your client needs for their own books, and in many countries a legal requirement once you are registered for tax. A clear invoice gets paid faster and causes fewer questions.
This guide covers what to include and how to send it. You can build one as you read with our free invoice generator: add your logo, items, tax and payment details, and download it as a PDF, with no account needed.
- Invoice
- An invoice is a dated document a seller sends to a buyer listing the goods or services supplied, what is owed, and when and how to pay.
What to Include on an Invoice
Requirements differ between countries, and some tax registrations add extra rules, but a clear invoice usually includes:
- The word Invoice and a unique invoice number.
- Your business name, address and contact details (and logo, if you have one).
- The client’s name or company and address.
- The issue date and the payment due date.
- A description, quantity, rate and amount for each item.
- The subtotal, any discount, tax, and the total due.
- Your tax or VAT number, if you are registered.
- Payment instructions: bank details, payment link or other accepted methods.
- Payment terms, and any late-payment terms you have agreed.
How to Make an Invoice, Step by Step
Step 1: Add your details and logo
Business name, address, email and phone. Include your tax or VAT number if you have one.
Step 2: Add the client
Their name or company, and the billing address they use for their accounts.
Step 3: Number and date it
Give it the next number in your sequence, the date you issue it, and the date payment is due.
Step 4: List the work
One line per product or service, with a clear description, quantity and rate. The line total is quantity × rate.
Step 5: Add discounts, tax and fees
Apply any discount, then tax on the discounted amount, then fees such as shipping. Show each one on its own line.
Step 6: Add payment details and notes
How to pay, the terms, and a short thank-you note.
Step 7: Save as PDF and send
A PDF looks the same for everyone and is hard to edit by accident. Keep a copy.
How Invoice Numbers Work
Each invoice needs its own number so you and your client can refer to it, and so your records have no gaps. Most businesses use a simple sequence with a prefix, such as INV-0001, INV-0002, or include the year, such as 2026-001.
Never reuse a number
If you cancel an invoice, keep its number and issue a new one (or a credit note). Reusing numbers causes confusion and can create problems with tax records.
Payment Terms Explained
| Term | Meaning | Often used for |
|---|---|---|
| Due on receipt | Pay as soon as the invoice arrives | One-off jobs, new clients, small amounts |
| Net 7 | Pay within 7 days of the invoice date | Freelance and small projects |
| Net 14 | Pay within 14 days | A common default for small businesses |
| Net 30 | Pay within 30 days | Larger companies with monthly payment runs |
| Deposit + balance | Part upfront, the rest on completion | Bigger projects and custom work |
Agree the terms before the work starts, and put them on the invoice. A due date the client has already agreed to is much easier to enforce.
How to Calculate Tax and Discounts
In most cases tax is calculated on the amount after any discount. For example, with two items totalling £1,470, a 5% discount (£73.50) and 20% VAT:
| Line | Amount |
|---|---|
| Subtotal | £1,470.00 |
| Discount (5%) | −£73.50 |
| Taxable amount | £1,396.50 |
| VAT (20%) | £279.30 |
| Total due | £1,675.80 |
Round each calculation to the penny (or cent), not just the final total, to avoid small mismatches. Tax rules vary by country and by what you sell, so check with your tax authority or an accountant. The sources below are a good starting point for the UK and US.
Invoice vs Quote vs Receipt
| Document | When | Purpose |
|---|---|---|
| Quote (estimate) | Before the work | Proposes a price for the client to accept |
| Invoice | After delivery (or at agreed stages) | Requests payment for what was supplied |
| Receipt | After payment | Confirms the payment was received |
How to Get Paid Faster
- Invoice promptly, as soon as the work is delivered.
- Be specific: describe what was delivered and when, so it gets approved without questions.
- Make paying easy: full bank details and a payment link if you use one.
- Send a friendly reminder a few days before and after the due date.
- Offer a deposit option for larger projects.
If you send many invoices, automation can create them from your CRM or project tool, send reminders on schedule and log payments. See our business process automation and CRM automation services, and our CRM automation playbook.
Create Your Invoice Now
Our free invoice generator has four templates, eleven currency formats, exact automatic totals, logo upload and PDF download. Drafts are saved in your browser, not on a server. Freelancers can also use our resume and proposal tools to win the work in the first place.
What must an invoice include?
A unique invoice number, your and your client’s details, the issue and due dates, itemized goods or services with prices, the subtotal, any discount and tax, the total due and payment instructions. Some countries require extra details once you are registered for tax.
Can I make an invoice for free?
Yes. Our free invoice generator lets you create, save and download invoices as PDFs without an account or watermark.
How do I number my invoices?
Use a simple sequence such as INV-0001, INV-0002, and never reuse a number. Adding the year (2026-001) also works well.
Is tax calculated before or after a discount?
Usually after: the discount reduces the taxable amount. Check the specific rules for your country and business.
What does Net 30 mean on an invoice?
The client should pay within 30 days of the invoice date.
Should I send an invoice as a PDF?
Yes. A PDF looks the same on every device, is hard to change by accident, and is what most clients expect.