How to Write an Invoice: Step-by-Step Example
Facts last checked October 24, 2026
An invoice is a request for payment. It also becomes a record: you will need it for your accounts, and your client will need it for theirs. A good invoice is easy to read, easy to check and leaves no room for questions about what is owed, so it gets paid sooner.
This guide walks through an invoice in the order you would write it, then shows a complete example.
Step 1: Label it clearly
Put the word Invoice at the top. This sounds obvious, but a document that looks like a quote or a statement can sit unpaid because the client is not sure it is a bill. In some countries a tax invoice has to be labelled as one; see what to include on an invoice.
Step 2: Add your details
Show who is asking to be paid: your business or full name, your address and a way to contact you. If you trade under a business name, many tax authorities expect the legal name as well. If you are registered for a sales tax such as VAT or GST, add your registration number.
Step 3: Add your client’s details
Name the person or company you are billing and their address. For business clients, use the exact company name they gave you, because their accountant may reject an invoice with the wrong name. Some invoices need the client’s tax number as well, especially for larger amounts in some countries.
Step 4: Give the invoice a number
Every invoice needs a unique number so that you and your client can refer to it. Keep a simple pattern, such as INV-0001, and never reuse a number. The guide on how to number invoices covers the common formats.
Step 5: Set the dates
There are up to three dates, and they are different things:
- Issue date: the day you create the invoice.
- Supply date: the day the work was done or the goods were delivered, if that differs from the issue date. Some countries require it on the invoice.
- Due date: the day payment is expected. If you do not agree a deadline, clients will pay whenever it suits them.
Step 6: List what you are charging for
Write one line for each item or service. Each line should have a short description a stranger could understand, the quantity, the price per unit and the line total. “Website design” is better than “Work”; “Logo design, 3 concepts and 2 revisions” is better still.
If you charge by the hour, show the hours and the hourly rate, not just the total. If you give a discount, show it on its own so the client sees what they saved.
Step 7: Work out the tax
If you charge sales tax, show it separately from the price. Decide whether your prices exclude tax (tax is added on top) or include it (the tax is already inside the price). The guide on tax added on top or included explains the difference and the arithmetic. If you do not charge tax, say nothing about it unless your country requires a note.
Step 8: Show the totals
Add up the lines to a subtotal, show any invoice-wide discount, then the tax, then shipping or other extra charges, and finally the total due. If the client has already paid a deposit, show the amount paid and the balance due. Make the final number the most visible figure on the page.
Step 9: Say how to pay and when
State the payment methods you accept and include the details needed to use them, such as bank account name and number. Repeat the due date near the total. If you charge interest or a fee for late payment, say so here, and check what your country’s rules allow.
Step 10: Add a short note
A line such as “Thank you for your business” costs nothing. This is also the place for payment terms you want in writing, such as “Payment due within 14 days of the invoice date”.
A worked example
You are a freelance designer billing a client for a fixed-price website design and two hours of hosting setup. Your prices exclude a 10% sales tax.
| Description | Quantity | Price | Amount |
|---|---|---|---|
| Website design (fixed fee) | 1 | $1,200.00 | $1,200.00 |
| Hosting setup (hours) | 2 | $45.00 | $90.00 |
| Subtotal | $1,290.00 | ||
| Sales tax (10%) | $129.00 | ||
| Total due | $1,419.00 |
Add the invoice number, the issue date, a due date 14 days later, your payment details and a note, and the invoice is complete. You can build exactly this invoice with the free invoice generator in about a minute.
Mistakes that delay payment
- No due date. Without one, there is nothing to be late against.
- No invoice number. The client cannot reference it, and your own records become messy.
- Vague descriptions. Clients query what they do not understand, and every query adds days.
- Wrong client name or address. Accounts departments often cannot pay an invoice that does not match their records.
- Totals that do not add up. A rounding difference makes a client doubt the whole document. Work out tax line by line, or use a tool that does it consistently.
- Sending it late. Invoice when the work is done, or at the milestone you agreed.
Keep a copy
Keep every invoice you issue. How long you must keep records depends on your country, and tax authorities set their own rules, so check with yours or ask an accountant.
Sources and notes
The required details vary by country. For a UK example, see the official guidance on what an invoice must include on GOV.UK. This guide is general information, not tax or legal advice.
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