How to send an invoice: your step-by-step guide (+ Excel invoice template!)
The ping of a new email in your client’s inbox could mean cash flow for your business – if it’s an invoice. Invoicing might not be the most glamorous task, but it’s a cornerstone of a healthy business. Understanding and implementing the best practices for sending invoices ensures you get paid for your work promptly and professionally.
In this guide, we’ll discuss invoicing in detail, from crafting to sending—and even automating—the request for your well-earned compensation. Whether you’re an independent contractor or a small business owner, mastering invoicing is a skill that pays dividends—literally. So, let’s dive in and learn all the steps and tips for invoicing so you can streamline what’s often an administrative headache. Plus, we’ve got a handy Excel invoice template you can download for free.
Why is it important to send a professional invoice?
Sending a professional invoice is crucial for freelancers, contractors, and small businesses because it reflects the standard of their services and even their brand's image. A well-crafted invoice serves as a billing tool and a document that legitimizes the transaction. It helps to establish credibility and trust with clients, showcasing the level of attention to detail and professionalism they can expect in all interactions. Furthermore, a professional invoice ensures clarity and transparency in financial dealings, helping to prevent disputes and misunderstandings regarding the services rendered and payments due.
Typically, a professional invoice includes important details like:
the service provider’s contact information
the client’s details
a breakdown of services or products provided
the total amount due
the invoice date
clear payment terms
Besides clarifying the payment terms, an invoice is a legal document that can be used as evidence in case any discrepancies arise, providing protection for all parties involved.
When to send someone an invoice
When it comes to sending invoices, timing—as they say—is everything. It affects cash flow and the professional relationship between a business and its clients. Generally, and in most cases, invoices should be sent immediately after the service is completed or goods have been delivered.
In some scenarios, like ongoing projects, invoices might be sent periodically, often at the end of each month or at pre-agreed milestones (usually outlined in a contract). For self-employed individuals, sending an invoice might depend upon the terms agreed upon with the client, which could be when work is completed or according to a scheduled contract.
Set the payment terms and schedule
When sending an invoice, setting clear payment terms and schedules is vital for ensuring you receive timely payments for your work. Payment terms outline the conditions under which you expect to be paid, including the payment deadline, acceptable payment methods, and any late fees for overdue payments. A clear schedule helps clients understand when payments are due and what amounts are expected at each interval if there’s a payment plan in place.
Here are some terms and examples of what’s involved when it comes to setting up payment conditions and schedules:
Invoice date
This is the date when the invoice is created or issued.
Payment due date
This is the specific date the payment should be made (e.g., 30 days after the invoice date or due immediately).
Acceptable payment methods
This could include a bank transfer, a check (yes, some still write these!), online payment platforms, etc.
Late payment fees
If you choose to apply late fees, state the amount or percentage that will be charged for overdue invoices. It’s also good to mention this before the work starts, especially in the contract or letter of agreement.
Payment plans
If applicable, clearly outline the frequency and amount of installment payments.
Setting up the payment terms and schedule proactively helps minimize the risk of delayed payments and maintains a strong cash flow for your business. Clearly communicate these details with your clients to prevent any misunderstandings.
How to send an invoice: Step-by-step
We’ve broken things down into seven easy steps to follow to invoice someone or send an invoice to a company. Here they are:
Step 1: Use a template
Start by selecting a professional invoice template that’s right for your business needs. There are a range of free invoice templates available in Excel that are easy to use and customizable. Or, save some time and download our free invoice template for Excel now.
Step 2: Fill in your business details
On the invoice, include your business name (your name will suffice if you’re doing business as yourself), contact information, and a logo. Make sure your details are up-to-date and accurate.
Step 3: Add client information
Input your client’s name, address, and other relevant contact details on the invoice. Being clear about who is being billed is crucial for record-keeping.
Step 4: Detail your services or products
List each service or product provided, along with a description, the rate, and the quantity. Ensure each service or product is itemized clearly to avoid confusion. (Hint: don’t group everything all together.)
Step 5: Calculate the total
If you’re using an Excel invoice template, you can automatically calculate the total amount due by using the built-in functions. Include applicable taxes, discounts, or credits, and always double-check the final amount.
Step 6: Specify payment terms
Clearly state the payment due date and accepted payment methods. This can include payment terms such as net 30 and any late fees.
Step 7: Send the invoice
Once your invoice is complete and double-checked (or even triple-checked!), send it to the client through email or a professional invoicing system.
Ways to send an invoice
Once you’ve successfully created your invoice, it’s time for the most important part: sending it. Select the invoice-sending method that best suits your and your client’s needs. Here are the three main ways to send an invoice to someone:
Invoicing software
In an era dominated by digital convenience, Expensify streamlines the billing process for companies and freelancers. It allows the creation of clean, professional invoices and simplifies tracking payments and expenses. With intuitive features and automation, Expensify saves you valuable time and helps to maintain organized records.
“Snail mail”
Despite the digital transformation, “snail mail” remains a reliable method for sending invoices, especially for clients who prefer physical records or lack digital access. When using this method, always keep a copy for your records and consider sending the invoice via certified mail to ensure its receipt.
Email is the most common digital method to send an invoice because of its speed and efficiency. An invoice can be easily attached to an email, providing a “digital paper” trail. Ensure the subject line indicates that the email contains an invoice, and include a brief message in the body to maintain professionalism.
Tips on managing your invoices
Here are some practical tips for invoice management when sending invoices:
Standardize your process
Create a consistent system for generating, sending, and storing invoices. Use software with templates to streamline the process.
Prompt delivery
Send invoices immediately after completing a service or delivering a product. Use invoicing software like Expensify for faster delivery and confirmation of receipt.
Follow up
Review outstanding invoices regularly and send polite reminders as the due date approaches. Follow up promptly if payment is overdue.
Keep records
Maintain organized records of sent and paid invoices. Cloud storage or invoicing platforms can help with this.
Automate your invoices with Expensify
You could try to manage invoicing independently and set up a complicated system for creating, sending, and following up with client invoices. Or, you could automate the entire invoicing process with Expensify and use your time elsewhere – like getting things done and growing your business.
Expensify simplifies invoicing by allowing you to customize your invoices, payment terms, frequency, etc. ensuring your documentation is professional, seamlessly integrating, and elevating your invoice management system. The invoices will include all the receipts and associated transactions, making it easy for customers to pay with one-click payments. Additionally, Expensify provides an invoice room for you and your clients to collaborate so you can get paid back more quickly. Invoices and even expense reports become a breeze when you use Expensify.
As a freelancer or self-employed individual, you can generate a self-employed blank invoice template tailored to your services. Once it’s been created, send your invoice directly through Expensify to your client. Your invoice will include automatic payment reminders and status updates when a payment has been received. Transform your invoicing process with Expensify and gain time and peace of mind.
How to send an invoice FAQs
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Yes, contractors typically send invoices to their clients to request payment for services rendered or goods provided.
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While a contract outlines the terms of service, an invoice is a billing document requesting payment. It’s typical to send an invoice, even if a contract exists.
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In most cases, it is a legal requirement for businesses to send an invoice for taxable goods or services sold.
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Yes, you can issue a handwritten invoice if it contains all the information required for a valid one.
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Yes, your or your business name must be included on an invoice for identification and tax purposes. If you’re wondering how to send an invoice as a freelancer and don’t have a registered business, putting your legal name is acceptable.
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The following are factors that make an invoice invalid:
missing seller or buyer information
no invoice date or unique identification
absence of itemized services or products
lacking the total amount due
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Apply late payment fees according to the agreed terms in the contract or when the payment is overdue beyond the standard payment timeframe.
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omitting important information (e.g., contact details, tax ID)
incorrect totals or currency
failing to follow up on unpaid invoices
not itemizing services/products clearly
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