How to Create an Invoice: A Simple Step-by-Step Guide for Beginners

Creating your first invoice can feel intimidating. What should you include? What's the right format? Will you look unprofessional?

Relax. Invoicing is simpler than you think. By the end of this guide, you'll know exactly how to create a professional invoice that gets you paid.

What Is an Invoice, Exactly?

An invoice is a formal request for payment. It tells your client:

What work you did
How much they owe
When payment is due
How to pay you

That's it. Everything else is details.

The 7 Essential Elements Every Invoice Needs

Let's break down what goes into a professional invoice:

1. The Word "INVOICE"

Sounds obvious, but label the document clearly. Put "INVOICE" at the top in large text so there's no confusion about what this document is.

2. Invoice Number

Every invoice needs a unique number. This helps you and your client track payments.

Numbering systems that work:

Sequential: 001, 002, 003...
Year-based: 2026-001, 2026-002...
Client-based: ABC-001, ABC-002... (ABC = client initials)

Pick a system and stick with it. Most freelancers use year-based numbering (like 2026-001) because it's clean and makes year-end accounting easier.

3. Your Business Information

At the top of your invoice, include:

Your name or business name
Your address
Phone number
Email address
Website (if you have one)
Tax ID or business number (if applicable)

Example:

Sarah Chen Design
123 Creative Ave, Suite 100
Austin, TX 78701
sarah@sarahchendesign.com
(512) 555-0123

4. Client Information

Include your client's details:

Company name
Contact person's name
Billing address
Email (especially if different from your main contact)

Example:

Bill To:
Acme Marketing Inc.
Attn: Accounts Payable
456 Business Blvd
Houston, TX 77001
ap@acmemarketing.com

5. Invoice Details

The dates and terms:

Invoice date: When you're sending this invoice
Due date: When payment is expected
Payment terms: e.g., "Net 15" or "Due upon receipt"

Example:

Invoice Date: January 3, 2026
Due Date: January 18, 2026
Payment Terms: Net 15

6. Line Items (What You Did)

This is the heart of your invoice—the description of your work and what it costs.

Each line item should include:

Description of work
Quantity (hours, units, or flat rate)
Rate or price per unit
Total for that line

Example:

Description                          Qty    Rate      Amount
─────────────────────────────────────────────────────────────
Website Homepage Design               1    $1,500    $1,500
- Wireframe and mockup
- Desktop and mobile versions
- 2 rounds of revisions
 
Logo Refinement                       3    $100/hr   $300
Social Media Graphics (5 sizes)       5    $75 ea    $375
                                      ───────────────────────
                                      Subtotal:     $2,175
                                      Tax (8%):     $174
                                      ───────────────────────
                                      TOTAL DUE:    $2,349

Be specific! Vague descriptions like "Design work: $2,000" can lead to confusion and payment delays.

7. Total Amount Due

Make the total impossible to miss. Put it in large, bold text:

Subtotal (before taxes)
Taxes (if applicable)
Any discounts
Total Due (the final number)

Optional Elements (But Good to Include)

Payment Instructions

Make paying easy by including:

Accepted payment methods
Bank details (for wire/ACH)
Link to online payment
PayPal address

Example:

Payment Methods:
• Pay online: [payment link]
• ACH/Bank Transfer:
  Bank: First National Bank
  Account Name: Sarah Chen Design
  Routing: 123456789
  Account: 987654321
• PayPal: sarah@sarahchendesign.com

Project or PO Reference

If the client provided a purchase order number or the work relates to a specific project, include it:

Project: Website Redesign Phase 2
PO Number: PO-2026-1234

This helps larger companies process your invoice faster.

Notes and Terms

A space for:

Thank you message
Late fee policy
Any relevant terms

Example:

Thank you for your business!
 
Note: A 1.5% monthly late fee applies to invoices
not paid within the payment terms.

Step-by-Step: Creating Your First Invoice

Let's walk through creating an invoice from scratch:

Step 1: Choose Your Tool

You have several options:

Option A: Word Processor / Spreadsheet

Microsoft Word or Google Docs
Excel or Google Sheets
Free but manual

Option B: Free Invoice Templates

Download a template, fill in details
Export as PDF

Option C: Invoicing Software

Professional templates built-in
Automatic calculations
Payment tracking
Automatic reminders
The smartest choice for ongoing freelance work

For your first invoice, any option works. For your freelance business long-term, invoicing software pays for itself in time saved.

Step 2: Fill In Your Business Info

Add your name/business name, address, and contact details at the top.

Tips:

Use a professional email (yourname@yourdomain.com is better than yourname@gmail.com)
Include your website if you have one
Add your logo if you have one

Step 3: Add the Client Info

Enter your client's billing information.

Important: Always confirm billing details with your client before sending. Invoices sent to the wrong person or department cause delays.

Ask: "What's the best email for invoices, and who should I address them to?"

Step 4: Add Invoice Details

Generate an invoice number and add the dates:

Invoice date: Today
Due date: Based on your payment terms (Net 15 = 15 days from today)

Step 5: Describe Your Work

This is where many beginners struggle. Here's how to write good line items:

Bad (too vague):

Design work: $1,500

Better (specific):

Website Homepage Design: $1,500
- Custom responsive design
- Includes desktop and mobile layouts
- 2 rounds of revisions included

For hourly work:

Consulting Services (Dec 1-15): 10 hours @ $100/hr = $1,000
- Strategy session (Dec 3): 3 hrs
- Implementation planning (Dec 7): 4 hrs
- Team training call (Dec 12): 3 hrs

Step 6: Calculate the Total

Add up your line items:

Subtotal: Sum of all line items
Taxes: If you charge sales tax (varies by location and service type)
Discounts: If applicable
Total: The final amount due

Most invoicing software does this automatically.

Step 7: Add Payment Details

Include:

How they can pay (card, bank transfer, etc.)
Direct payment links if available
Any relevant payment instructions

Step 8: Review and Send

Before sending, double-check:

Client name spelled correctly
Amounts are accurate
Due date is clear
Payment instructions are included
Your contact info is correct
PDF format (always send as PDF)

Invoice Template Example

Here's a complete invoice example you can use as a reference:

═══════════════════════════════════════════════════════════
 
                         INVOICE
 
═══════════════════════════════════════════════════════════
 
Sarah Chen Design                    Invoice #: 2026-001
123 Creative Ave, Suite 100          Date: January 3, 2026
Austin, TX 78701                     Due Date: January 18, 2026
sarah@sarahchendesign.com            Terms: Net 15
(512) 555-0123
 
───────────────────────────────────────────────────────────
 
Bill To:
 
Acme Marketing Inc.
Attn: Jake Thompson
456 Business Blvd
Houston, TX 77001
accounts@acmemarketing.com
 
Project: Q1 Social Media Campaign
 
───────────────────────────────────────────────────────────
 
Description                              Qty    Rate    Amount
───────────────────────────────────────────────────────────
 
Campaign Strategy Document                1    $500     $500
- Target audience analysis
- Content calendar (3 months)
- Platform recommendations
 
Social Media Graphics                    15    $75      $1,125
- 15 branded post designs
- Optimized for Instagram & LinkedIn
- Includes source files
 
Ad Creative Designs                       5    $150     $750
- 5 ad variations
- A/B testing versions
- All standard sizes
 
───────────────────────────────────────────────────────────
                                      Subtotal:    $2,375
                                      Tax (0%):    $0
                                      ─────────────────────
                                      TOTAL DUE:   $2,375
───────────────────────────────────────────────────────────
 
💳 PAY ONLINE: [payment link]
 
Or pay by bank transfer:
Bank: First National Bank
Routing: 123456789
Account: 987654321
 
───────────────────────────────────────────────────────────
 
Thank you for your business!
 
A 1.5% monthly late fee applies to overdue invoices.
Questions? Contact sarah@sarahchendesign.com
 
═══════════════════════════════════════════════════════════

Common Mistakes to Avoid

Mistake 1: Vague Descriptions

"Design services - $2,000" makes clients nervous. They wonder what they're actually paying for. Be specific about deliverables.

Mistake 2: Missing Due Date

"Please pay soon" is not a due date. Give a specific date: "Due: January 18, 2026"

Mistake 3: No Payment Instructions

Don't make clients figure out how to pay. Include a payment link or clear instructions.

Mistake 4: Wrong Contact Information

Double-check the client's billing email and contact. Wrong address = delayed payment.

Mistake 5: Inconsistent Invoice Numbers

Skipping numbers or using random formats makes you look disorganized. Pick a system and stick to it.

Mistake 6: Sending Word Documents

Always send invoices as PDFs. Word documents can be accidentally edited and look less professional.

Mistake 7: Waiting Too Long to Invoice

Invoice immediately when work is delivered. The longer you wait, the less urgent payment feels to the client.

Frequently Asked Questions

Do I need to charge sales tax?

It depends on:

Your location
Your client's location
What type of service you provide

In the US, services are often exempt from sales tax, but laws vary by state. When in doubt, consult a tax professional.

What if I don't have a business entity?

You can still invoice! Use your legal name as the "From" and your personal address. Many successful freelancers operate as sole proprietors.

How do I handle deposits?

Create an invoice for the deposit amount with clear description:

Website Redesign - Deposit (50% of $5,000): $2,500
(Remaining balance due upon project completion)

What about international clients?

Include:

Currency (USD, EUR, GBP, etc.)
Your preferred international payment method
Your timezone if relevant

How long should I wait before following up?

Send a reminder on the due date
Follow up 3 days after due date
Then weekly until resolved

Quick Reference Checklist

Before sending any invoice, make sure you have:

"INVOICE" clearly labeled
Unique invoice number
Your business name and contact info
Client's billing information
Invoice date
Clear due date
Specific line items with descriptions
Accurate totals
Payment instructions
PDF format

What Comes After the Invoice?

Once you've sent your first invoice:

Track it: Know which invoices are outstanding
Follow up: Don't be shy about payment reminders
Record it: Keep copies for your taxes
Improve it: Refine your template based on what works

Next Steps

Creating invoices doesn't have to be complicated. Start simple:

Use the template above as a starting point
Customize it with your information
Send your first invoice today
Track payments and follow up consistently

As your freelance business grows, consider invoicing software that automates the tedious parts—numbering, calculations, reminders, and tracking.

The goal is to spend less time on invoicing and more time on the work you love.

Ready to create professional invoices in seconds instead of minutes? Quidbill makes invoicing simple—no accounting degree required. Create your first invoice in 30 seconds.

Try Quidbill Free →