Create a well-structured invoice to ensure that you are paid correctly and promptly. Use LawDistrict’s professional templates and simple step-by-step process to finalize your document today.
Last Update July 21st, 2022
- What Is an Invoice
- Common Types of Invoices
- What to Include in an Invoice
- How to Write an Invoice
- Invoice Sample
- Frequently Asked Questions (FAQs) About Invoices
What Is an Invoice
An invoice is a form that is generated by a self-employed individual or company when collecting payment from a customer for a product or service. The document is usually dated and includes key information such as the address and names of both parties.
Invoices also generally include a description of the product or services that were delivered along with their corresponding prices presented in a line-by-line structure. Any taxes should also be added to the total amount.
When running your own business, invoices are an essential document to ensure that you can receive payments efficiently and keep track of sales. If you’re new to creating invoices, simply filling in your information on a blank invoice template can make the process much faster and easier.
With our Invoice example below, review what information you need to include,as well as how to outline it.
Use this to create an Invoice to charge clients for your products or services.
Invoice from:__________ Invoice to: __________
[Contact information]__________ [Contact information]__________
Invoice number #: __________
Invoice date: __________
Invoice due date: __________
Product or Service Description QuantityUnit priceAmount
Terms & Conditions (e.g. Payment methods)
Common Types of Invoices
There are many different types of invoices that can be used depending on the type of work that has been performed. The most common of these are listed below:
Basic invoice: standard invoice for an amount due by an individual or company for services or products provided, such as catering or construction materials.
Services invoice: used to collect payments for a service that was rendered, such as repair or carpeting work.
Contractor/freelancer invoice: providing a receivable to a customer as an individual or company for services performed or products provided, such as graphic design or photography.
Medical invoice: provided by a doctor, medical practice, or hospital for health care costs.
Consultant invoice: used by individual consultants and consulting firms when providing professional services to another party.
Business invoice: used by small businesses or firms to collect payments for goods or services provided, such as a house painting company.
Commercial invoice: used when sending a package, usually to detail what is inside the shipment for customs officials.
Lease-rental invoice: states the rent that must be paid by a tenant to a landlord.
What to Include in an Invoice
There are a number of important considerations that need to be featured on an invoice for it to be properly used. A completed document will normally include the following key details and points of information:
Name, address, contact details, and unique identifier of the individual or company that provided the product or service
Name and address of the customer being invoiced
A clear description of what is being charged
Amount(s) being charged
Supply date on which the goods or services were provided
Value-added tax (VAT) if applicable
The total amount owed by the customer
It’s also important to note that if you're a sole trader, the invoice must also include your name and any business name being used, as well as the address where legal documents should be sent.
In addition, if your company is a limited liability company (LLC), its full company name as it appears on the articles of incorporation must be used.
How to Write an Invoice
Writing a well-formulated invoice involves more than just including the essential pieces of information. It’s also important to structure your document correctly and to write it in a professional manner.
Follow the steps below to create an invoice correctly:
Use a professional template with the right fonts and styling
Clearly include the word invoice as a header on the document
Include all necessary information
Double-check the amounts owed and if tax applies
Use a line-by-line structure
If you’re new to collecting payments, it can help to see a real example of an invoice before creating your own. View our sample invoice below to get a good idea of what your document should look like when completed.
Frequently Asked Questions (FAQs) About Invoices
If you’re still wondering about some of the features that are in an invoice, don’t worry. Find out more information about this kind of document with our answers to some of the most frequently asked questions below.
What are the benefits of using an invoice template?
By using a professional invoice template, you can make sure that all necessary information is included within your document. This will help you get paid correctly and on time, without any potential confusion occurring with your customer.
When is the right time to send an invoice?
The most appropriate time to send out an invoice is immediately after you have completed and delivered your work to the customer. Providing an invoice as fast as possible after a project has been completed decreases the billing cycle and maximizes your chances of getting paid.
Where can I get a free invoice template?
LawDistrict provides printable free invoice templates which can be edited for whichever industry or field you work in. These can be easily filled in through our step-by-step process and with expert guidance.