How to Make an Invoice (with Online Template)

Why do I need an invoice template?

An invoice template is essential for tracking payments and income, maintaining accurate accounting records, and providing proof of business transactions. It can help you get paid faster from clients, meet tax and legal requirements, and may protect you in case of legal action for non-payment.

A professionally designed template from an online invoice generator makes it easy to create invoices quickly. Recurring invoice templates are especially useful for businesses with regular payments.

Must-have components of an invoice

Invoice header

The word "Invoice" should be clearly stated at the top with a business logo (if you have one).

Business information

Your business details, such as your name or your company name, and contact information, including your business address, phone number, and email, should be near the top of the invoice.

Client information

Your client's business name, point of contact (for example, someone working in the client’s accounting department), and contact details like an email should also be at the top of your invoice.

Invoice details

Invoice details include your unique invoice number, the date of the invoice's issuance, and the payment due date. This information is typically near the top of the page.

Itemized list of products and/or services

Describe each product or service you provided to the client as line items, including the quantity, the rate per item, and the total amount for each item.

Subtotal, taxes, and total amount due

After inputting the line items, add them to get the subtotal (some invoice templates do this automatically.) Once it's been calculated, you can add any taxes that may apply—this can vary depending on your location or industry. Afterward, calculate the total amount due by adding the taxes to the subtotal.

Payment terms and methods

Add payment instructions, such as the methods of payment your business accepts (for example, a bank transfer, credit card, or online payments such as PayPal or Venmo), and billing terms (e.g., net 30, 60, or days—"net" means invoices are due within that time period). Add any late payment policies, like interest, if the invoice hasn't been paid by the due date.

Other relevant information or personalized messages

In addition to the elements above, consider any elements specific to that customer or service or send a short, friendly note to your client, like “Thank you for your business!"

Best practices for business invoicing

The following tips will help you keep your finances organized and ensure you get paid on time.

Double-check all invoice details for accuracy

Before sending the invoice out, make sure all the information you've included is correct. Double-check client details, service descriptions, quantities, prices, and taxes. Mistakes can cause delays or confusion.

Send invoices promptly upon completion of work or delivery of products

As soon as services are completed or products are delivered, send invoices to your clients. This helps ensure prompt payment and keeps everything on schedule.

Maintain consistent invoice numbering for record-keeping

A consistent numbering system will help you keep your invoices organized. Tracking invoices with an easy-to-use numbering system allows you to be aware of payments, easily manage your records, and locate documentation for tax purposes.

Follow up on overdue invoices professionally

It’s inevitable that some invoices won't be paid on time, but following up in a professional manner is key to maintaining good relationships with your clients. Send polite reminders after the due date has passed and reiterate the instructions for making payments.

Avoid using vague descriptions for products or services or failing to specify payment terms clearly

Be clear and detailed in your descriptions of the products or services you provide. Specify quantities, item names, hours worked, and any other relevant details. Invoicing terms, such as payment deadlines and applicable late fees, should be stated clearly to prevent misunderstandings.

How to create an invoice: 3 options

You can quickly make an invoice in any one of the following ways.

DIY invoice

You can create an invoice manually using programs like Microsoft Excel, Google Sheets, or Word. By using a spreadsheet or document editor, you have full control over the layout and content. However, this can be time consuming if you're creating invoices regularly. All of these programs include free invoice templates.

Use invoicing software

QuickBooks, FreshBooks, Simple Invoice, and PayPal are just a few online options for making invoices. Many come with additional features like tracking, reminders, and reports, but they can be costly. A free invoice maker website can also be an option for those who need a simple solution without the cost.

Try an invoice template

Invoice templates, like those offered by LegalZoom, make it easy to fill in your information without needing design skills or software. Templates are a quick solution for businesses that don’t need advanced features.

Create your business invoice template with LegalZoom

Are you looking for an easy way to create and manage invoices? LegalZoom’s invoice templates are a great place to start. Our invoicing software helps you save time and keeps you organized. You can easily add your contact information, details about services, and save your settings for future use. 

FAQs  

How do I assign an invoice number?

To assign an invoice number, choose a simple system that works for you. You can use sequential or chronological numbering or numbering that's specific to your customer. Some businesses include the year for easy tracking—for example, “2025-001."

What are common payment terms on an invoice?

Net 15, net 30, COD (cash on delivery), PIA (payment in advance),and CIA (cash in advance) are some common billing terms seen on invoices. You may also see terms like "2/10 Net 30," which means a 2 percent discount is offered if the invoice is paid within 10 days.

How long should I keep invoices for my records?

According to the IRS, you should keep tax records, including invoices, bills, receipts, mileage logs, proof of payments, and other records for at least three years in case of a tax audit. However, you may need to keep them longer depending on your industry, state, and other requirements.

What should I do if a client doesn’t pay an invoice?

Sometimes, a client's payment can slip you through the cracks, so it is best to start with a friendly reminder. If that doesn’t work, follow up with a more formal notice. You could offer payment plans or discuss any issues they might have with meeting their obligation. If things still aren’t resolved, you might need to consider taking legal action.