How To Invoice For Freelance Work, With Template

Are you ready to get paid for your freelance services? If so, you’ll need to create an invoice to send to your client.

If you’re managing your freelance contract on Upwork, this entire process is handled for you. If you’re working with a client who’s not on Upwork, though, you’ll need to set up and send your own invoice. Just follow the steps in this guide to invoice your client and get paid with ease.

What is freelance invoicing?

An invoice is what self-employed professionals and businesses use to request payment for a good or service and document their business transactions. It’s typically a one-page document that breaks down your work or hours into an itemized list—and tells the client how to pay you.

Sending your clients branded, easy-to-read invoices is a mark of professionalism; small business and large enterprise clients will expect to receive an invoice when payment is due. Plus, sending invoices helps you keep better track of project and payment status.

An invoice may include other expenses including:

• Purchases made by you on behalf of a client (such as a domain name that you bought while setting up their website)
• Applicable taxes, such as sales tax
• Processing fees

The total number of expenses you include on your invoice will be guided by your contract with the client.

Key components of a freelance invoice

A freelance invoice should always include several key components, including contact information, payment details, and payment due dates.

Be sure to include all of the following on your invoice from top to bottom.

1. Invoice header with contact information
2. Unique invoice number and date
3. Work details
4. Invoice total
5. Payment method and terms

1. Invoice header with contact information

Your client is likely receiving multiple invoices for their business. A header indicating that the document is an invoice and identifying your company at the top of the page will make it easier for your customer.

If you have a freelance business name and logo, include it in the upper left or right corner. Every invoice header should also have your contact details. The customer uses this information to identify where to send payment and how to contact you.

It’s also essential to include the client’s contact information and your contact person’s name on the invoice template. Identifying the client improves internal recordkeeping and is necessary if the person paying the invoice is different from your point of contact for the work.

2. Unique invoice number and date

Consistency is critical when creating a system for invoicing and bookkeeping. Two dates should be listed on your invoice, the date it was sent to the client and the date that the payment is due. Explicitly listing these dates will remove any confusion and can be easily referenced for follow-ups or discussions.

Each invoice should be uniquely numbered. Rather than using a single digit for your first invoice number, you should use a four- or five-digit invoice number. Using an invoice number that is multiple digits helps keep invoicing organized when you have numerous clients.

With this system, you could use the first digit to note the company and the last digit to identify the invoice number. For example, use invoice number #10001 for your first client’s first invoice and #40002 for your fourth client’s second invoice.

3. Work details

A breakdown of work is likely the largest and most important section of the invoice. This section provides a detailed list of what the client is paying for, typically in a table.

Your invoice items should be a reflection of the work contract or agreement you have with the client. The client needs to understand the line items they’re being charged for, without surprise expenses and fees.

Basic flat rate invoices should include two columns: one to describe each task, and another to list the corresponding rate you charge.

An hourly contract should include four columns:

1. Task descriptions
2. Hourly rate per task
3. Hours worked per task
4. Total amount billed per task

4. Invoice total

Below the itemized breakdown, you should include the total amount due and any taxes. While it seems simple, it’s necessary to identify the total that the client must pay. Clearly communicating the invoice total will minimize miscalculations by the client and improve payment accuracy.

5. Payment method and terms

This section of the invoice tells the customer the best payment method and clarifies how to pay you. Include specific details about whether you prefer to be paid with cash, check, credit card, or through a money transfer service like PayPal, Square, or Venmo. It often helps to include step-by-step instructions with direct links to your payment methods.

After explaining the payment method, list the payment terms. This section reinforces the invoice’s payment due date and explicitly lists any discounts for early payment or penalty fees for late payment.

How to create an invoice

Creating an invoice is simple—just follow these six steps. You’ll need a text editing program as well as a way to view and send PDFs.

1. Open a blank document
2. Enter project and client details
3. Create an invoice table
4. Explain payment methods and terms
5. Add additional notes
6. Send the invoice

1. Open a blank document

Start by opening a blank document in Microsoft Word, Google Docs, or another text editor. (You can even use Microsoft Excel or Google Sheets, if you prefer.)

If you have a company logo, drag it into the document and format it so it’s at the top of your invoice—left, right, or center depending on your preference.

2. Enter project and client details

Next, type the invoice number, date of issue, payment due date, and project name. Be sure to clearly label each field.

Leave a space after the invoice number, then enter contact details for both you and your client. Include all parties’ names, company names, mailing addresses, email addresses, and phone numbers—even if you plan to send this invoice electronically.

3. Create an invoice table

Now it’s time to break down all of the work you did for your client. Start by creating a table in the document—two columns for a flat-rate project, and four columns for an hourly invoice.

Fill out information about each task, rate (or hourly rate) and hours worked, if applicable. For hourly contracts, add up each item’s total cost in the far right column.

After you’ve completed entering every task, create one more row and label it “Total.” Add all of the amounts you listed above so that the client can easily see their total bill. You may want to make this row bold so it really stands out.

4. Explain payment methods and terms

Complete your invoice by providing information about the payment process. List any payment methods you accept. For each one, include these key details:

• Online options: Provide links or usernames for payment apps and platforms
• Check payments: Write out the address to which your client should send a check
• Bank transfer (ACH) or wire: List the banking details and recipient name for any transfers and wire payments

Reiterate how long your client has to pay the invoice. This window of time is typically expressed as “net” payment terms—i.e. if the client has 14 days to pay, the invoice has Net 14 payment terms. If the client has 30 days to pay, the invoice has Net 30 payment terms. Make sure this amount aligns with the due date you put at the top of the invoice.

You should also clearly state if there are any late fees, when late fees will take effect, and how much the fee is.

5. Add additional notes

This is optional, but if you want to add any additional information (or a thank you message!) to your invoice, do so after the payment terms section.

6. Send the invoice

Once you’ve created your invoice, you can send it to your client as a PDF via email. Put the invoice number and project name in the email subject line so your client can easily identify it as a payment request. And don’t forget to express thanks for their business when sending the invoice—it’s a nice customer service touch!

Best practices for the invoicing process

Following the standard invoice format outlined above is important, as many of your clients will have finance departments that expect information to be presented clearly and associated with a unique invoice number and due date.

Additionally, it’s considered best practice to:

• Send your invoice to the client in a timely fashion, either as soon as the project is finished or at the end of the last month in which you completed work for a client.
• Send payment reminder emails to the client before an outstanding invoice payment is due. For example, you could send a reminder one week before the payment is due, and then another one day before it’s due. If the payment becomes overdue, you can continue to follow up via email and even phone if you think that your invoice emails may not be reaching the client.
• Always adhere to the terms of your invoice. If you stated that the client had 30 days to pay, and that you’d charge a 10% late fee after that point, don’t increase your late fee at the last minute.
• Keep copies of all invoices, as these documents are important to have if you need to bring in the services of a lawyer or collections agency at any point. Plus, invoices are helpful records to have on hand when reconciling your bank accounts and preparing tax returns.

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Common invoicing mistakes to avoid

As you work on your invoice, watch out for these common mistakes and typos that can impact how quickly you get paid:

• Not clearly identifying project work and rates. Be clear about what work you’ve done, how much it cost, and what project it’s associated with. Your main contact at a client company may not be the person who actually pays the invoice, so it’s important to provide as much context as possible.
• Forgetting to update the invoice number. If you use an invoice template, make sure you always update the invoice so it matches the correct client and number.
• Recording the wrong total. Double check your math before sending your invoice—and if you find that you did make a mistake, work with the client to rectify it quickly by issuing a new invoice or a partial refund.
• Changing or adding fees. Stick to the fees and charges that you outlined in your initial contract with the client.
• Omitting payment information. Be sure to include all payment options available to your client—and make sure that you offer options that work for your client. While a very small business may be happy to pay via Venmo, large corporations will typically require bank transfers or check payments.
• Forgetting to send invoices. If you want to get paid, you have to send your invoices on time!

Using invoicing software like Quickbooks or Wave can help you reduce these errors by:

• Automatically assigning the next invoice number in a series
• Adding up hourly and project totals
• Keeping your payment terms and details consistent across all invoices
• Enabling automation of payment reminder emails and recurring invoices

You can also create a Direct Contract on Upwork. This feature allows you to set up an agreement with, and collect payment from, clients who aren’t already on the Upwork platform. Direct Contract payment is automatically requested from the client, just as it is for your regular Upwork projects. It’s a quick and easy way to handle both your project contracts and invoices all in one place.

Using freelance invoice templates

With attention to detail, though, you can easily create and manage professional invoices on your own using word processing software. A template will make this process even easier—all you need to do is customize the template to your brand, save it, then make a copy each time you want to send an invoice.

Downloadable free invoice template

We’ve put together a simple invoice template that you can use on your next project. Simply click below to get a copy of the invoice.

Download Template

Freelance and invoice clients with ease on Upwork

You can level up your freelancing with this invoice template and other free tools from Upwork, including our rate calculator and cover letter library.

And if you’d like to make the freelancing process even easier, take advantage of Upwork’s Direct Contracts and payment tools at any time—whether you found your client on Upwork or not. All you need is a free Upwork account. Sign up or log in now to start finding work, sending contracts, and getting peace of mind with escrow protection.