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Saturday, 24 September 2022

How to Create Contractor Invoices

Creating Contractor Invoices

Be certain that you’re sending a professional invoice to your clients by including these details.

1. Identify the Document as an Invoice

Make sure the actual word ‘invoice’ is clearly at the top of your document. It must be completely obvious, maybe use a large bold font. You don't want anyone to be in any doubt that they are receiving your invoice. 

2. Assign an Invoice Number

Each invoice must have a unique invoice number. This is a crucial record keeping detail for you and your clients. The simplest way is to assign sequential numbers to each invoice, starting with Invoice 001, Invoice 002 and continuing onward. If you ever need to discuss a specific invoice, unique invoice numbers make it much easier for both the contractor and their client. 

3. Invoice Date

You must date every invoice. Usually at the top, beside the invoice number. This is really important when it comes to enforcing payment deadlines and penalties. 

4. Your Business Details

You must provide details such as: business name, address, phone number, email address. Putting your company logo onto your invoice adds a professional touch. Branding consistency builds trust! 

5. Client Details

You need your client's contact details on your contractor invoice. The same business information as your contact info, plus the name and department of your billing contact. You might be sending your invoice to a different billing department that’s completely separate from your daily business contact. Getting your invoice to the right place as quickly as possible means that you get paid in a timely manner. 

6. Details of Your Services

The more details you provide on your independent contractor invoice, the less chance there is of rejection. It's where you itemize all the individual services provided. The minimum here is:

  • Brief description of what you did
  • Quantity of products provided or number of hours worked
  • Pay rate (Add applicable tax)
  • Subtotal for each service

This is most easily understood in a table format, with one column for each piece of information. Each task or service is recorded in each row. 

7. Amount Due

The final row of your table is the combined total of all the subtotals, which forms the amount owing on the invoice. Many invoice formats record this figure at the top of the document as well. It’s often the only thing clients want to know, so it's helpful to make this visible at-a-glance.

8. Payment Terms

You need to tell clients how you want to be paid, so you need to list each payment method you accept. Include all your payment information, like bank account details for transfers, PayPal, Google Pay, credit and debit cards. If you’ve got a payment link, get in there. Make it as easy as possible for your clients to pay you.

You’ll have already discussed your payment terms at the briefing stage, but including your late payment policy terms on your invoice is a good idea. It incentivises paying on time and is a reminder that there’s consequences for delayed payment. This is why most independent contractors have the invoice date and payment due date on all their invoices.

9. State the Payment Deadline

Write the deadline for payment in a bold, easy-to-read font. Be as specific as you can be with the payment due date. Write out the full date, as in: “Payment Due November 30, 2022” rather than more vague payment terms, such as “Payment Due in 30 Days,” which can lead to confusion and delayed payments.

Each payment method will have its own processing time. So remember to be thorough in your payment options section so that it doesn’t affect the deadline.


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