Key Takeaways

Why Do You Need to Send an Invoice as a Freelancer?

An invoice is a request from a business professional to a client for payment. As a freelancer, it is your right and responsibility to ask for payment from the client once the project is complete. Creating a professional invoice helps streamline the payment process.

Sending an invoice helps to remind your clients about the payment. Moreover, it makes payment tracking easy. Freelancers are highly eligible to manage financial activities.

They can keep track of financial transactions and records and receive on-time payments. Moreover, it enhances your professional impression in front of clients.

How to Create and Send Invoices to Your Clients as a Freelancer?

An invoice for freelance work can be created in several ways. For their first invoice, freelancers can use one of the following three techniques:

1. Create an invoice using Excel, Word, or Google Docs: You can use any of these options to create an invoice. There are multiple built-in samples in Excel, Word, or Google Docs that you can use to create an invoice, which you can easily share with clients.
2. Use a free invoice template: Freelancers can easily create an invoice using online invoice templates. Just download, customize, and create an invoice quickly with high accuracy. Easily send professional invoices to your clients and get on-time payment.
3. Use invoicing software: Invoicing software like Moon Invoice offers complete end-to-end invoicing management. It helps you to create a professional invoice, track invoices, and perform various activities easily. One can avail of the Free sign-up and get all the latest features to streamline the overall invoicing.

What Should You Include on a Freelance Invoice?

1.  A Professional Header

Your invoice for a freelance business should have an invoice header at the top that includes your company name and logo, if you have one. If the header says that the document is an invoice and mentions your company at the top of the page, your customer will enjoy it.

You can incorporate just your name, even if your company does not have a logo or a name. On your freelance invoice, write your business name or the full name of the recipient in a professional-looking, readable font.

2. Your Contact Information

You should include your contact details on a professional invoice.

Your client is likely to receive many bills for their own business. Both your contact information and the company being billed must be on the invoice.

The customer uses this information to determine how to contact you and where to send payments.

Just below this, also mention your business’s mailing address, phone number, email address, and website.

You should also provide your client’s information or your client’s business name and address. If you are aware, include the name of the person who receives your invoices.

3. Mention Invoice Number

Consistency is vital while creating and dealing with invoices.

Each freelancer invoice should be assigned a first invoice number. Instead of using an invoice number with just one digit, use a four- or five-digit number. With this method, you might use the first digit to identify the company and the last digit to identify the invoice number.

This is a one-of-a-kind number that will help you keep track of your bills. There is no right or wrong way to do it; simply keep everything in sequential order to minimize confusion and track your freelance invoices quickly.

4. The Issue Date and Due Date

Because the payment term begins with sending invoices, mention the issue date on your invoices. If you inadvertently numbered your bills incorrectly, referring to the issuance date can also help distinguish one invoice from another.

The day on which both you and your client agreed that your invoice is due is known as the due invoice date. You and a client may have an agreement that prompt payment will be made at the end of the month or after a project.

This will be reflected in the due date, allowing you to determine whether a client is behind on their payments after the due date has passed.

5. A Detailed Breakdown of the Work

The task breakdown is the longest and most important section of the invoice. This section, typically in the form of a table, provides a detailed breakdown of the services the client has rendered.

Include a detailed breakdown of the total amount owed for each item, as well as a description of the tasks completed or the goods supplied, the quantity of that well delivered, and the unit or hourly rate for that good or service.

There should be no hidden prices or fees, and the client should understand the line items.

6. Total Invoice Cost

After the itemized breakdown, the total amount due, together with any applicable tax, should be displayed. Even though it could seem straightforward, determining the client’s required payment is crucial.

The invoice total will reduce customer errors and increase payment accuracy, helping you get paid faster.

7. Payment Terms and Method

Finally, mention the forms of payment you accept, including cash, checks, cards, PayPal, Stripe, and other methods. A direct connection to your payment options and step-by-step instructions is often helpful.

List the payment terms for bank transfers after describing the payment method. The final invoice due date is reiterated in this section, along with any discounts for early payment or late payment fees that may apply.

Make it as easy as you can so that your client pays on time. Include payment options for repeat clients, as well as any additional information they need to complete the payment.

How to Invoice as a Freelancer? 8 Invoicing Tips For Freelancers

Following our discussion of the core components of an invoice, let’s take a look at some crucial invoicing tips for independent freelancers.

1. Review Your Invoices and Send Them Soon

Invoice issues are one of the most typical reasons for late payments. Examine your invoice for errors and ensure that you are not invoicing your client for more or less than the correct amount. Check your grammar as well to ensure all your invoices look professional.

Another crucial piece of advice is to deliver your bills as soon as possible. Because experts believe that sending an invoice soon will not make you appear pushy, though freelancers frequently send multiple invoices a few weeks late after the task is completed.

2. Don’t Be Afraid to Follow Up

Let’s be honest. Some customers may find it difficult to collect money. While some customers may have valid reasons for paying after the due date, others may just refuse to pay on time. To maximize their chances of collecting payment, freelancers should develop a follow-up routine.

It is best to remind clients 24 hours before the deadline to request payment. Please keep in mind that a healthy cash flow is just as crucial as aggressive invoicing, which may otherwise jeopardize your client relationships.

3. Offer Multiple Payment Methods

Offering your customers multiple payment options simplifies the checkout process because the right gateway for their unique needs will be ready and waiting for them.

Accepting a variety of ways boosts your chances of directly addressing each customer’s preferred payment method and providing them with invaluable convenience.

4. Offer Early Payment Incentives

You may get your clients to pay you regularly with various methods. The most effective of these is to offer rewards for making early payments.

To further motivate your clients to make on-time payments, don’t be afraid to implement late payment penalties. You can also create monthly plans to let the client automate invoice payments.

Most freelancers also use one of many other invoice types, such as pro forma invoices, progress invoices, or freelancer invoices, to get paid on time. You can also include in your invoice to ensure clients pay on time. Make sure to convey this to your clients when you send an invoice.

5. Using Invoicing Tools and Template, Create Professional-Looking Invoices

Creating a business invoice manually can be time-consuming, resource-intensive, and prone to errors. Money can be lost due to a manual invoicing document. Using a template will help to send your invoice and enhance the billing process.

If you send out multiple invoices to different clients each month, it can be difficult to keep track of them all. Using professional tools to ensure that there is no mismatch between invoice and transaction prices can also help you avoid profit leakage.

An automatic invoicing solution like Moon Invoice can be useful in this situation. You save time and money by using these products, which streamline and automate the entire invoicing process.

6. Include Taxes and Fees

Freelancers are eligible to pay self-employment taxes according to tax rules. Including tax details in the freelancer’s invoice helps to earn the applicable tax on the services provided. Professionals must include tax and other additional charges in a proper way.

7. Discuss Payment Terms Upfront

Don’t forget to include payment terms and conditions in your invoice related to your freelancing business. Mentioning your payment policy helps prevent confusion. Clients get a clear understanding of your policy and make payments accordingly. Thus, you get the exact amount with no delay.

8. Maintain Good Records for Your Invoices

Maintaining a record of your invoices is crucial. Always assign a unique number to your invoice to make it easy to track. Freelancers must organize their invoices systematically using folders or other digital tools.

While maintaining soft copies of invoices, it’s also a good idea to keep physical records. This helps in maintaining a proper backup.

Bonus Tips on How to Make an Invoice Without a Company?

When to Send the Invoice as a Freelancer?

Sending an invoice depends on the business’s nature and policies. In the case of freelancers, the same concept is applicable. Generally, freelancers should send an invoice as soon as the project is completed.

There are multiple conditions for sending an invoice as a freelancer:

• Upon Project Completion – Once you complete the project, it is crucial to send the invoice immediately after. This helps clients make on-time payments.
• Hourly Project – If you’re working on an hourly project, send invoices accordingly. In this case, you need to include the hourly rate on the invoice.
• End of the Agreement – Send the invoice once the contract period of your freelancing business has been completed.
• Milestone-Based Project – If your freelancing business involves a milestone-based approach, then send an invoice once your milestone is achieved.

What to Do if a Client Doesn’t Pay Your Invoice

Sometimes, even after sending a professional invoice and reminders, a client may delay or fail to make the payment. It’s a frustrating situation, but it’s important to handle it professionally and systematically to protect your earnings — and your reputation. Here’s what you should do:

1. Send a Friendly Reminder

Start with a polite follow-up. Sometimes, missed payments are simply a result of oversight, busy schedules, or technical issues. Send a friendly email reminding the client about the overdue invoice. Include the invoice number, due date, amount, and a direct payment link if possible. A simple reminder often does the trick.

2. Make a Phone Call

If the email doesn’t get a response, try calling the client. A quick, courteous phone call can clear up misunderstandings faster than back-and-forth emails. Confirm if they received your invoice and gently ask when you can expect the payment.

3. Send a Formal Payment Demand

If reminders and calls don’t work, send a formal letter or email stating that payment is overdue. Keep the tone professional but firm. Clearly mention the invoice number, the services rendered, the outstanding amount, and any late fees you may have stated in your payment terms.

Example:
“As per our agreement dated [date], payment for Invoice #12345 was due on [due date]. Please arrange for the payment of [$amount] at the earliest to avoid additional late fees.”

4. Offer a Payment Plan

If the client is facing genuine financial difficulties, you could offer a payment plan. Breaking down the amount into smaller, manageable installments can help you recover at least part of the payment instead of losing it entirely.

5. Charge Late Fees (If You Mentioned It in Terms)

If you included late payment penalties in your invoice terms, now is the time to remind the client. A small late fee might motivate them to settle quickly to avoid extra charges.

6. Consider Withholding Future Work

If the client has upcoming work or projects with you, it’s reasonable to pause work until the outstanding invoice is cleared. Make sure to inform them politely that you cannot continue services without payment.

7. Use a Collection Agency or Legal Help (As a Last Resort)

If all else fails and the amount is significant, you may consider hiring a debt collection agency or seeking legal advice. These steps should be a last resort, as they can strain relationships and may involve extra costs.

Conclusion

Even though it may appear scary and even frightening at first, creating a new invoice for your client directly is a simple way to get paid once you break it down and set a system in place.

After you’ve sent your payment request and invoice, make it easy for a client to contact you if they have any questions regarding the business invoice or your payment.

Send courteous reminders as the payment deadline approaches, and enquire if they have any qualms about making the payment.

With the following information, we hope you’re ready to create your next invoice and get paid for the services you provided to your client.

FAQs