Example
Quote first, invoice when the work is done, receipt when the money arrives.
Also called a bill, a sales invoice, or a tax invoice where tax is shown.
What it means in practice
An invoice records who billed whom, for what, how much, and by when. It is a commercial and accounting record rather than a government form, so it is valid on its contents rather than its format.
The parts that matter: your details and the client's, a unique number, the issue and due dates, the work as separate lines, the tax if you charge it, the total, and how to pay.
Covered in full in the guide to make an invoice.
Where it shows up on the paperwork
The word Invoice at the top, your details and the client's, a unique number, the issue and due dates, the work as lines, the totals, and how to pay. Everything else is optional.
What goes wrong
- Sending it to the person who hired you rather than the person who pays.
- Leaving off the client's PO number when they use one, which is the most common reason an invoice stalls.
- Describing a week of work as one line called services rendered.
Common questions
Is it legal to write my own invoice?
Yes. An invoice is a document you issue, not a government form. It is valid on its contents: who billed whom, for what, when, how much, and the tax if you charge it.
What is the difference between an invoice and a bill?
The same document from two sides. You issue an invoice; your client receives a bill.
Do I need software to send invoices?
No. A PDF made in the browser is as valid as one from an accounting package. Software helps when you are tracking many invoices at once, not when you are making one.