What Is a Service Invoice?

A service invoice is a formal financial document that a service provider sends to a client, requesting payment for the services they have provided. Like a normal invoice, it carries all the necessary information, such as the invoice number, client details, business details, payment terms, and line item details for each service provided.

Landscapers, photographers, writers, and other service providers often use a service invoice to receive payment for their work. It acts as a bill for the buyer.

Invoice for Services Rendered Example

Let’s understand more by looking at a service invoice example now. Suppose a designing service provider company named Star Design Pvt Ltd in New York offered logo and website design services to the client. The invoice for the same will look as below:

Types of Service Invoices

Businesses should send out invoices for services in various formats. There are different types of service invoices, which are as follows:

Standard Invoice

This is one of the most common types of invoices that professionals utilize. Instead of a specific industry or a requirement, it is universally fitted for all kinds of businesses.

Proforma Service Invoice

These invoices are sent before the service is delivered, often reflecting an estimate of the cost. They are not a payment request document. For instance, if the business is providing a plumbing service for the project, it can share a pro forma invoice that presents all the details.

Credit Service Invoice

A credit service is provided by a company when a customer is given a refund, discount, or an invoice with a negative balance.

Debit Service Invoice

If the company raises prices, the customers will get a debit service invoice to cover the difference. Assists in revising an existing bill.

Recurring Service Invoices

If the service is ongoing, then the professional can share recurring service invoices. Subscription service providers are the best examples of service invoices in this category.

Interim Invoice

Companies handling large projects use interim invoices, under which they share an invoice for completing one phase or milestone. In simple language, they don’t wait until the end of the project.

Mixed Invoice

A mixed invoice includes credit (positive) and debit (negative) amounts in a single invoice. Suppose a company wants to raise prices for one project while lowering the amount owed on another. In that case, it will issue the customer a mixed invoice.

Commercial Invoice

Commercial invoices are sent during shipments across borders. The major details are the goods’ weight, quantity, and total quantity.

Electronic Service Invoice

E-invoices, or electronic invoices, are any bills sent electronically. With the data provided above, you can create an invoice and start collecting money for your work.

Final Service Invoice

After a project, the vendor will send the client a final invoice for the services provided. It includes the deal’s specifics, such as the services provided, their due dates, and any available payment methods.

Past Due Service Invoice

Suppose a customer has not paid after receiving a final service invoice. In that case, the company will issue a past-due invoice to get their attention. It will include all the information found on the final invoice, as well as any penalties associated with late payment.

Collective Invoice

This kind of invoice refers to a single invoice that includes all the small invoices for small projects that the company completed for the client. This not only eases the invoicing process but also minimizes the transaction fee.

Timesheet Invoice

This type of invoice is useful for hourly projects, where the company charges based on the number of hours worked on the project. The employee’s per-hour charge is multiplied by the total hours worked on the project.

Retainer Invoice

A retainer invoice is useful when a company collects advance payments to secure the service against cancellation. Companies send invoices to collect prepayments for all future tasks.

What’s a Service-Based Business?

A service-based business refers to a profession that sells and offers professional services rather than selling a product. This means professionals sell their services based on their expertise and skills.

Typical service-based businesses include:

• Consultants
• Lawyers
• Photographers
• Writers
• Designing
• Landscaper
• Plumber
• Personal trainer
• Financial services
• Carpentry
• HVAC services

How to Create a Services Rendered Invoice? Step-by-Step Guide

In this section, we’ll learn the real approach to creating a service-rendered invoice. Many small businesses struggle to receive on-time payments. However, creating and sending a professional invoice is the correct way to overcome this problem.

Now, how to make an invoice for services rendered? Here are the steps:

1. Choose and Utilize the Invoice Template

The initial step is to search for and use the invoice template. Moon Invoice offers customized and professional free invoice templates for user convenience. A professional can change the invoice layout to create the desired invoice, catering to the specific needs.

2. Fill in the Invoice Details

The next step is to fill in the invoice details, which will help you track your invoice easily. For instance, if you want to track a particular invoice, then the invoice number helps you in this case. Professionals need to fill in the following fields:

• Invoice number
• Invoice date (Date on which invoice was issued)
• Due date (last date of making payment)
• PO number (Purchase Order number)
• Currency

3. Fill in Business & Client Details

Professionals need to fill in the business and client details in the invoice template. Business details reflect your company or entrepreneur’s details, such as the business name and business logo, while client details reflect the client’s details. This information is as follows:

• Business name
• Client name
• Business address (along with the zip code)
• Client address (shipping address or billing address, along with the zip code)
• Business contact details (mobile number or email address)
• Client contact details (mobile number or email address)

4. Details of Service Offered

Outline all the details of the services you offer to your clients. In the breakdown form, include all the details of the services, along with the individual costs associated with each service. It enhances the viewer’s understanding and reduces the chances of confusion. Mention the total amount and highlight the same.

One important thing to consider is taxes. When invoicing a client, be aware of the applicable sales tax or GST in your state. This prevents inaccuracy while protecting your business from defamation.

Invoicing software like Moon Invoice provides auto-calculations of taxes, which enhances accuracy and speeds up the process.

5. Payment Terms

While creating an invoice for services rendered, you must include the payment terms. These payment terms are a necessary part of your invoice, as they outline the guidelines for your client when making a payment. In the payment terms, specify the payment methods you accept, the due date, and any applicable late payment fees. The thing to note is that you must highlight all the crucial terms in the terms.

6. Attachment

Attach any supporting documents (if required) to make your invoicing stronger and more valuable. However, it is not mandatory, but it reflects credibility.

7. Signature

Always add a signature at the end of an invoice to reflect your credibility. This enhances your values and wins clients’ trust.

What Are the Essential Factors to Consider When Invoicing?

There are several factors to consider when invoicing, which are as follows:

Payment Terms

You must share your payment terms and conditions on your invoice. These terms help the user understand all the crucial points when making a payment.

Unique Invoice Number & Invoice Date

Every invoice should include a unique number, also known as the invoice number, that helps track it. Similarly, professionals must include the invoice date, which refers to the date on which the invoice was issued.

Correctness in the Details

Mentioning the details is a good practice, but you must focus on their correctness. A single mistake or wrong data can ruin your invoicing game. Therefore, professionals should always focus on accuracy. The best solution is to double-check the invoice details to ensure all information is correct.

Proper Itemization of Services & Cost Breakdown

As a service provider, you must provide a brief description of all offered services in itemized form. Additionally, mention the cost breakdown for each service. This helps the client understand the proper service details that were provided.

Due Date

Professionals must include the due date on the invoice, which shows the last date of payment. This is another important component of an invoice.

Get Free Services Rendered Invoice Template

To download the invoice template for the free services you received, you must use a reputable software like Moon Invoice. The platform provides free invoice templates for different businesses. The following are the key features of Moon Invoice:

• 66+ customizable invoice templates
• Availability of templates in different formats like Word, Excel, Google Sheets, Google Docs, and PDF
• Auto-calculation of the total amount, along with the tax and discount
• Offering multiple payment gateways
• Supporting multi-lingual
• Easy adding of a digital signature and requesting the client’s signature
• Auto-reminder of the payment
• Expense tracking & management
• Setting up recurring invoicing
• Tap to pay for quick payment on mobile devices
• Easy sharing over WhatsApp or email
• Offline access that helps users manage invoicing even without an internet connection

Last Remarks

It doesn’t matter what services your business offers. An invoice for services rendered is essential for excellent cash flow for all the services offered by small businesses and freelancers. However, it’s only possible when you choose the best invoicing software, like Moon Invoice, a true partner in creating professional invoices. It’s not just software but a doorway to a new invoicing revolution with all the advanced strategies. Give it a try!

Frequently Asked Questions