Are you ready to get compensated for your job as a freelancer? Consequently, you will need to send your customer an invoice. When a business or freelancer requests payment for a product or service, they use an invoice to keep track of their transactions. This is critical since it provides the customer with an itemized account of your accomplished work and outlines the payment terms. But for that, do you need to learn or understand how to raise an invoice?

However, where do you begin? How do you raise an invoice as a freelancer that looks professional? How and when will it be sent to the client?

This post will teach the essentials of invoice creation using online invoicing software. We will begin by displaying an example invoice so that you can understand how the various components go together. Then, we will go further into these components and describe what should be included in your invoice. 

An invoice created using invoice generator software is a detailed description of the items or services delivered by a person and the corresponding payments payable for each item. It also offers other details on the transaction, such as the taxes assessed, the date of the transaction, the supplier’s and recipient’s addresses, the tax identification numbers, etc.

Who is a freelancer?

Who is a freelancer-how to raise an invoice

A freelancer is a person who does not work as an employee for a single organization but instead accepts many jobs for various companies or people. 

Invoicing is a vital business procedure for a freelancer since it defines the amount to be paid and guarantees that payments are received on time. Creating an invoice using automated invoicing software helps minimize misunderstandings or miscommunication between the freelancer and the customer.

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What details to include in a freelance invoice?

Regardless of what free invoice generator app you use to produce the invoice, it should have all the necessary information for prompt and precise payment. While the free invoice maker app uses an inbuilt template, there are five essential components of an invoice for freelancers.

So, while we discuss how to raise an invoice, keep the following points in mind.

1. Billing header with contact details

Billing header with contact details-how to raise an invoice

Your customer probably receives many bills for their company. A header announcing that the item is an invoice and identifying your company at the top of the page can expedite the client’s billing procedure.

Include your company’s logo in the top left or right corner if you have one. Every invoice should include your contact information and the billing company’s contact information. 

Sample contact information block:

  • Your Firm’s Name
  • Your Title
  • Address
  • Contact details

When you raise an invoice as a freelancer, you must also provide information about your customer and the name of your primary point of contact. 

2. Date of the invoice issued and a sequential number of invoices

Date of the invoice issued and a sequential number of invoices-how to raise an invoice

When developing a system for billing and accounting with the help of online invoicing software, consistency is crucial. Your invoice should include two dates: the date submitted to the customer and the date payment is due. 

Any misunderstanding will be eliminated by noting these dates explicitly, and they may be referred to for follow-ups or debates.

Each invoice should be numbered individually. Instead of utilizing a single digit for the initial digit of your invoice number, you should use four or five digits. Various-digit invoice numbers facilitate the organization of billing when you have multiple customers. 

While you learn how to raise an invoice at the beginning of your career, don’t miss out on dates.

3. The client’s identifying information

The next step in the “how to raise an invoice” process is to indicate the beneficiary or who it is for. Include the recipient’s name, address, contact details, etc. It’s good to add all of the client’s contact information in this area if you need to chase down the payment.

Some freelancers place their contact details on the opposite side of the clients, while others align everything to the left. When you use any invoice generator software, all you need to edit is a pre-built template.

4. Detailed work breakdown

The job breakdown is usually the biggest and most relevant component of “how to raise an invoice as a freelancer.” This part gives a thorough breakdown of what the customer is paying for, often in the form of a table. 

Your invoice components must correspond with the client’s job contractual arrangement. The customer should comprehend the line items for which they are being billed, and there should be no unexpected charges or fees.

The table must have a column describing the job, with a new line for each specific item. If the line item is billed on an hourly basis, the rate per hour should be given in the following column.

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5. Total invoice cost & Method of payment, and conditions

It is the last step of how to raise an invoice. Below the itemized breakdown, put the total amount payable and applicable taxes. It is vital to specify the whole amount the customer must pay, despite its seeming simplicity. The invoice total will reduce customer calculation errors and increase payment accuracy.

This invoice portion specifies the preferred payment method and describes how the client should pay. Include detailed information about your preferred payment method while using automated invoicing software, such as cash, cheque, credit card, or a money transfer provider such as Paypal, Stripe, or a similar platform. Including step-by-step instructions with direct links to your payment options is generally beneficial.

After describing the payment method, describe the conditions of payment. This section reiterates the invoice’s due date and specifies any discounts for early payment or late payment penalties.

How to raise an invoice?

Now that you have learned how to raise an invoice? It is time to deliver the client’s bill. When submitting an invoice, be careful to convey thanks and thank the customer for their business. 

The easiest approach to deliver the invoice to the customer is as a PDF attachment to an email message.

End note

So, that was all on how to raise an invoice. These are just the key components you must keep in mind as a freelancer. Using online invoicing software can reduce the stress to raise an invoice as a freelancer. 

Try Moon Invoice’s automated invoicing software for free. Contact our sales team at support@mooninvoice.com or +1-805-491-9393.

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