How to invoice as a freelancer

min read

How to format a freelancer invoice

There isn’t really a science to formatting an invoice, but there are steps you should follow so you and your client have everything needed. The main thing to consider is that it’s clear and professional and includes all the necessary information related to you, your client and the work you did for them.

Below, we’ll take a look at the key components you’ll need to include when setting up as a freelancer and creating and formatting your freelance invoice.

Invoice header

At the top, a header ensures your invoice stands out. It should include your name (or the name of your business) and a logo if you have one. It should also clearly state that the document is an invoice, which lets the recipient know that it’s important and shouldn’t be dismissed.

A strong header ensures brand consistency and continues to establish your credibility, so don’t overlook this first component.

Contact information

Just like when you write a letter, you need to include your contact information at the top of your invoice. Your client may already have this information, but it’s important to include it again so your invoice is professional. It also helps with your client’s confidence so they know exactly who the invoice is from and how they can easily get in touch with you if they have a question or update.

The contact information you should include on your invoice is:

Full name
Business name (if you have one)
Postal address
Email address
Telephone number

Not only this, but also like a letter you should include your client’s contact information. This makes sure you keep a formal record of who you send invoices to and helps prevent mistakes.

Unique invoice number and date

Next, you need to make sure you and the client can accurately file and identify invoices. This is for both your benefit and the client’s benefit.

The invoice number can be in any format you like. This could simply be in numerical order, e.g. #001; relate specifically to the client, e.g. #CLIENTA-1; or a custom format depending on how you wish to identify invoices.

You should also include the date the invoice is issued. This helps with your and your client’s record-keeping.

Description of services

The next piece of information you need to include is a description of the services you provided to the client. This ensures your client knows exactly what they’re paying for.

For clarity and simplicity, it’s often best to break this information down into a table. The information in the table should include:

Description of the services provided
Agreed hourly or total project rate
Total hours worked (if hourly rate)
Total billable amount per task
VAT (if applicable)

This information clearly shows the client the work that’s been completed and the breakdown of the costs, which should prevent questions or disputes. It also ensures you remain tax-compliant where necessary.

Payment terms and options

It’s vital to include the date the invoice should be paid, which is something you and your client may have discussed during the hiring process. If not, it’s common to use a period of time such as 30 days or 10 working days from the date of issue. Alternatively, you may wish to give a specific date for when the client will need to pay the invoice.

Some professionals choose to include a short message stating that invoices that aren’t paid on time will incur a freelance invoice late fee. This could be a flat rate or a percentage of the total invoice amount for every day the invoice is overdue.

Possibly the single most important piece of information to include on your invoice is the payment options. This will include how you want clients to pay you, such as via bank transfer, cash, debit/debit card payment or PayPal. You may also offer a variety of options.

Most freelancers ask to be paid by bank transfer, and you should include the relevant information on the invoice. If you work with international clients, you’ll also need to include additional information so they can pay you too. This should include:

Bank Name
Account Name
Account Number
SWIFT/BIC Code (for international payments)
IBAN (for international payments)

You should be able to find this information in your online banking or located on a bank statement.

Dos and don’ts of invoicing

Invoicing can be a little daunting at first, but it’s an important part of the freelance process – otherwise, you simply won’t get paid. Here are some key dos and don’ts for your freelance invoice:

Dos

Give your client a heads-up that your invoice will be sent soon
Keep copies of all your invoices
Send payment reminder emails a week in advance of the due date
Send regular follow-up emails for overdue invoices
Stick to the guidelines stated in the invoice
Include a message of thanks

Don’ts

Be late sending your invoice
Forget to include any of the information listed above
Forget to double-check all details before sending
Forget to actually send your invoice
Change any fees or terms without prior agreement
Hold back if invoices are overdue

Sending an invoice

Before sending your invoice, it’s best to send it in a file format that can’t be edited, such as a PDF. Then, check with your client as to whether they’d like you to send the invoice to them or to a specific email address or person. You may also want to send a paper copy to the business, though this is far less common these days.

If you’ve completed work for an individual or another freelancer, you can also send invoices to a private person.

During your freelance career, you may consider whether you should register as a limited company, which can have many advantages as you grow. This will also have an impact on how you invoice clients, such as the need to include VAT. For more information read our guide to what’s best: self employed vs limited company.

Invoicing international clients

When invoicing international clients, you’ll want to include all of the same information outlined above. However, there are a few key differences and additions to be aware of to make sure you’ve paid the right amount and there aren’t any misunderstandings. These include:

Make sure you use the currency in which you’re charging your client
The accepted payment method
Your SWIFT/BIC code and IBAN if your client is paying via bank transfer
Whether or not VAT or other local taxes are required
Whether there are fees for foreign payments and who is responsible for those fees

Without this information you face delays, being paid the incorrect amount or not being paid at all.

Invoicing for freelance work

At first, invoicing as a freelancer can feel a little strange. But, it’s an important part of the process – it’s also one that’s important to get the right first time. If you don’t include all the relevant information on your invoices, it can cause confusion, delays and – worst of all - risk you not being paid on time. And during your new venture as a freelancer, you need to make sure you get paid when you expect to get paid, as delays can cause a domino effect when it comes to paying your personal bills and finances.

If you’re looking to go freelance and register as a limited company, Start Up A-Z is here to help. With us, you can form your company for free - we’re here to support you at every stage.