Contents:
How to create your invoice (incl. invoice management platforms)
Whether you’re a freelance writer, designer, consultant, or working on freelance platforms, or directly with businesses, creating and sending an invoice ensures that your work is recognized and paid for promptly. This guide will walk you through how to create a freelance invoice that looks professional, ensures timely payments, and helps you manage your freelance work efficiently.
What is a freelance work invoice?
An invoice is a document that serves as an official request for payment, detailing the work performed, the payment due, and the terms agreed upon with the client. Invoices are not just documents that companies use; they are useful even for freelancers.
A freelance work invoice is a document that freelancers use to request payment for services provided to a client. It serves as an official record that details the work completed, the amount due, payment terms, and other essential information needed for financial transactions between the freelancer and the client.
Do I need an invoice even if I am a freelancer?
Even if you are a freelancer, just starting out, working informally, working with local clients, or on a small scale, consider sending a professional invoice. Invoices aren’t just about getting paid; they’re a key part of managing your freelance business, tracking your income, and maintaining transparency with clients. It also serves as a legal record of your work, helping you manage taxes, track payments, and provide proof of income. Even in the informal sector, a clear and professional invoice can help establish you as a credible freelancer, build trust with clients, and avoid misunderstandings about payments.Your clients might also need the invoice for documentation and tracking of their own business expenditures.
👍How does a professional invoice help your business?
A professional invoice is more than just a request for payment—it’s a reflection of your business standards and organization. A well-designed and clear invoice not only communicates the details of the work performed but also shows that you take your freelancing career seriously.
Shows Professionalism: A professional invoice shows that you’re organized and detail-oriented, qualities that clients value. An invoice is often one of the last interactions you have with your client on a project. A clear and professional invoice leaves a positive impression and can influence whether a client considers hiring you again.
Avoid Payment Delays and Disputes: A well-formatted invoice that include all necessary information helps clients process payments without unnecessary back-and-forth. Clear, detailed invoices reduce the chance of misunderstandings or disputes over what was delivered and how much is owed, ensuring you get paid for all your hard work.
🚩Key components of a freelance invoice
To create a professional-looking invoice, it’s essential to include all the necessary components. These elements not only provide clarity to your client but also ensure that you meet any legal or accounting standards required for business transactions.
The key sections of an invoice and their contents are:
Header
Your Business Information: Include your name, business name (if applicable), GST No., address, phone number, and email. Providing this information ensures that the client’s accounting department knows exactly who is billing them and where payments should be directed. They also need this information to file their own GST paperwork.
Client Information: The client’s name, business name, address, and contact details. This helps ensure the invoice gets to the right person quickly, reducing delays, if it is a medium to large organization. Even if for an individual client, it makes the invoice look personalized and professional.
Invoice Number: A unique identifier for the invoice.
Invoice Date: The date the invoice is issued.
Due Date: The deadline for payment.
Itemized List of Services
Description of Services: A brief description of the work performed. Use clear and concise descriptions for each task or deliverable. Avoid vague terms; instead of saying “content writing services,” specify the project name or the name of the article. This also indicates the project scope.
Quantity/Hours: The number of hours worked or quantity of each service provided.
Rate: The rate charged per hour or per service. Break down the rate charged for each task, whether it’s hourly, per project, or per word/page. For transcription, the rate may be per minute of audio. For some editorial work, the rate may be per 100 words or a part thereof.
Total for Each Service: The total cost for each line item (Quantity x Rate).
Date of Service: Specify when the work was performed or delivered. This is particularly important if your work spans multiple days or billing periods. If the delivery dates of milestones are important, include them.
Subtotal
The sum of all line items before taxes and additional charges.
Taxes
Any applicable taxes (e.g., GST) should be listed separately.
Total Amount Due
The final amount the client needs to pay, including taxes and any other charges.
Payment Terms
Outline payment terms, such as payment methods accepted (e.g., bank transfer, PayPal), late fees, and any discounts for early payment.
Notes or Additional Information
Optional space for adding notes, such as a thank you message or specific instructions related to the invoice.
Your Payment Details
Include bank account information or payment methods where the client can send the payment.
📌See some sample images here from editable invoice templates I created for my clients who are freelancers as well.
👉Tips on Contents:
Date: The invoice date marks the official billing date. Some clients also use this date for their internal tracking and processing. Make sure it’s clearly visible, preferably at the top of your invoice. Also consider including it in the file name when you save your document (e.g., “Invoice_09.01.24”).
Invoice Number: An invoice number is essential for tracking payments and referencing specific transactions. It’s helpful for both you and your clients when managing multiple invoices over time. Start with a simple numbering system, such as 001, and increment by one with each new invoice (002, 003, etc.). If you work with multiple clients, you might incorporate the client’s initials or project codes into the invoice number for additional clarity. You can create your own system of how to code the invoice number:
001, 002, etc.
Client initials/Month/serial number
Project initials or number/serial number/year
👉Tips on Payment terms and methods
Payment terms are the conditions set on when and how you expect to receive payment for your services. They define the timeframe within which a client must pay you after receiving your invoice.
Common terms include:
Net 15: Payment is due within 15 days from the date of the invoice.
Net 30: Payment is due within 30 days.
Net 45 or Net 60: Less common but still used, these terms allow 45 or 60 days for payment.
These terms help set expectations and can protect you from late payments. Including clear payment terms on your invoice ensures that clients understand when you expect to be paid, helping to avoid misunderstandings and encouraging timely payments. Some freelancers like to emphasize the payment terms by including a penalty clause to encourage timely payment.
Here are some common ways freelancers typically phrase their payment terms on invoices:
Payment due within 30 days of the invoice date.
Full payment is expected within 15 days of receipt.
Please make payment within 7 days via bank transfer, PayPal, or UPI as listed below.
Payment terms: Net 45. Late payments may incur a fee of 2% per month.
Invoices are due immediately upon receipt unless otherwise agreed.
Specifying Your Preferred Payment Methods:
It’s important to clearly state how you would like to be paid on your invoice. Common payment methods for freelancers include:
Bank Transfer (NEFT, IMPS, UPI): Widely used in India, bank transfers are secure and direct. Include your account number, IFSC code, and bank name for smooth transactions.
PayPal: Popular for international clients but note that fees apply. Provide your PayPal email or url and consider stating any additional charges for this method.
UPI (Google Pay, PhonePe): Simple and instant for local transactions; include your UPI ID.
Other Digital Wallets (Paytm, Razorpay): Specify if you accept payments through other platforms, which can be convenient for Indian clients.
🚩How to create your invoice
You can create your invoices on MS Word, Powerpoint, Canva, MS Excel, Google Sheets, Jotform, Google Docs, and many other websites where free and paid invoice templates are offered.
👉Tips:
Instead of creating a new invoice from scratch each time, create a few templates which you can reuse.
If you are familiar with creating PDF form fields, you can create editable forms where you can fill in the fields to generate new invoices.
Creating your own invoice templates online
If you prefer to create your own invoice templates, several online tools can help you design and customize them:
Canva (canva.com) Canva's drag-and-drop interface allows you to create customized invoice templates from scratch or modify existing templates. This is ideal for those who want complete control over the design.
Adobe Spark (adobe.com/express/create/invoice) Adobe Spark provides tools to create and design professional invoices online. The platform offers various customization options, allowing you to match your invoices with your brand identity.
Invoice Ninja (invoiceninja.com) Invoice Ninja is a comprehensive invoicing platform that lets you create custom invoice templates and manage your billing process. It offers both free and paid plans, with advanced features available in the paid version.
Venngage (venngage.com) Venngage is a design tool that provides customizable invoice templates. You can create your own templates or modify existing ones to suit your business needs.
Create using available invoice templates
Creating your own PDF or image format invoice is also possible from available pre-designed templates. Here are some options:
Free Invoice Templates
Invoice Simple (invoicesimple.com) Invoice Simple offers a variety of easy-to-use templates suitable for different industries. The free versions are available with basic customization features, allowing you to download and send professional invoices quickly.
Wave (waveapps.com/p/invoice-template) Wave provides free invoice templates as part of its accounting and invoicing software suite. These templates are fully customizable and can be downloaded in PDF format, offering a seamless experience for small business owners.
Google Docs & Sheets (docs.google.com) Google Docs and Sheets offer free templates that can be accessed through Google Drive. These templates are easily editable and are a great option for those who prefer to keep everything within the Google ecosystem.
Invoice Home (invoicehome.com) Invoice Home provides a wide range of free invoice templates that can be downloaded as PDFs, Word documents, or Excel files. You can also customize and send invoices directly through their platform.
Paid Invoice Templates
Some sites that offer professional invoice templates are:
FreshBooks (freshbooks.com)
QuickBooks (quickbooks.intuit.com)
Zoho Invoice (zoho.com/invoice)
Etsy (etsy.com) Etsy is a marketplace that offers a variety of creative and unique invoice templates. Many sellers provide paid, downloadable templates that are often designed for specific industries or aesthetic preferences.
Online Invoicing Systems
Online invoicing systems are cloud-based software tools designed to automate and streamline the process of creating, sending, and managing invoices. Online invoicing systems offer invoice creation, payment reminders, automated billing, payment process integration, multi-currency and multi-language support, expense tracking and management, client management, reporting and analytics, tax calculation, security and data backup, and mobile access.
When you send an invoice using these services, the mail links to a payment page, which offers a link to pay, and when payment is done, the invoice shows a "paid" status. The system makes tracking paid and unpaid invoices easy.
Several invoicing systems are popular among Indian freelancers and small businesses due to their ease of use, compliance with local tax regulations (like GST), and integration with multiple payment methods. Here are some commonly used Indian invoicing systems:
1. Wix Invoices
Wix offers an invoicing tool integrated with their website builder, allowing you to create, customize, and send professional invoices directly from your site. You can add your business details, client information, itemize services, and set payment terms.
You need to have a business plan and have to integrate payment methods like Razorpay or PayPal.
Invoices can be sent via email, and clients can pay online using multiple payment methods like credit cards, PayPal, or Stripe, directly from the invoice link.
PayPal allows you to create and send invoices directly from your account. You can customize the invoice with your logo, add service descriptions, set payment terms, and specify the preferred payment method.
The invoice is emailed to your client, who can pay instantly using their PayPal account, credit/debit card, or other linked payment options. PayPal also tracks the status of the invoice, notifying you when it's paid.
Razorpay provides an invoicing feature designed for Indian businesses. You can create GST-compliant invoices, add your business and client details, list services, and set payment terms. Razorpay supports adding payment links directly in the invoice.
Non-GST invoices cannot be made.
Invoices are sent via email or SMS, and clients can pay through a wide range of methods, including UPI, cards, net banking, and wallets. Payments are automatically tracked within the Razorpay dashboard.
4. Zoho Invoice
Zoho Invoice is popular in India for its GST-compliant invoicing, easy customization, and ability to manage recurring invoices. It integrates with multiple payment gateways like Razorpay, PayPal, and Stripe.
Supports multiple currencies, automatic payment reminders, expense tracking, and time-tracking for billable hours.
5. Vyapar
Vyapar is an invoicing, accounting, and inventory management software tailored specifically for Indian small businesses. It helps create GST-compliant invoices and manage cash flow.
You can have offline and online invoicing, payment tracking, inventory management, and expense management with seamless integration to various payment methods.
3. TallyPrime
TallyPrime is widely used for accounting and invoicing needs, particularly by businesses familiar with Tally’s traditional software. It provides comprehensive GST billing and invoicing features.
Features include GST-compliance, multi-currency support, e-invoicing, and detailed financial reporting, though it may be more suited to slightly larger businesses.
ClearOne, part of ClearTax, is designed for small businesses to manage invoicing and accounting. It offers GST-compliant invoicing and is connected with the ClearTax platform for easy tax filing.
Offers automated GST calculations, expense tracking, payment reminders, and integration with payment gateways like Razorpay.
5. myBillBook
myBillBook is an invoicing and inventory management app aimed at small and medium businesses in India. It simplifies invoice generation and supports GST and non-GST billing.
Features offered include customizable invoices, inventory tracking, party ledger management, and mobile app availability for on-the-go invoicing.
6. HostBooks
HostBooks provides cloud-based accounting, invoicing, and GST filing solutions. It is especially useful for freelancers and small businesses needing integrated tax compliance.
Automated invoicing, GST and TDS compliance, multi-user access, and real-time data syncing across devices.
7. Swipe
Swipe is a newer invoicing app designed for freelancers and small businesses in India. It offers a clean, user-friendly interface with quick invoice generation and payment tracking.
You get digital invoicing, GST compliance, customer database management, and payment tracking with UPI and other gateways.
Pros and Cons of Using Invoicing Software vs. Creating Your Own Template
Pros of Software: Saves time, automates reminders, helps track payments, offers professional-looking designs.
Cons of Software: Subscription costs, dependence on internet connectivity, possible steep learning curves for advanced features.
Pros of Custom Templates: No ongoing costs, total control over design, can be simple and straightforward.
Cons of Custom Templates: No automation for payment tracking or reminders, increased chance of manual errors.
🚩 How to save and send your PDF invoice
How to save the invoice:
Once your invoice is ready, save it in a format that cannot be easily altered. The most recommended format is PDF, which maintains the integrity of your document and looks professional.
Saving as a PDF: Most word processors, including Google Docs, Microsoft Word, and Excel, and even Canva, have an option to save or export as PDF. This format ensures that your invoice layout remains consistent and is secure from accidental edits.
Secure the PDF: If you have an advanced PDF editor, you can secure the PDF so that it cannot be altered. Adobe acrobat (professional), Foxit PDF and such PDF editing software offer these features.
Managing invoices on your computer: organization tips
Create a Dedicated Folder System: Set up a main folder called “Invoices” with subfolders organized by year, client name, or project. This helps keep all your invoices easily accessible and prevents mix-ups. For repeat clients, you can keep a copy of the invoice in their project folders too.
Use Consistent File Naming: Adopt a consistent naming convention for your invoices, such as “ClientName_Invoice#_Date” (e.g., “ABC_Corp_Invoice001_Aug2024”). This makes searching and sorting straightforward.
Back-Up Regularly: Save invoices in multiple locations, like a cloud service (Google Drive, Dropbox, One Drive) and an external hard drive. Regular backups ensure your records are safe even if your device fails.
Version Control: Always save the final, sent version of the invoice separately from drafts. Labeling files clearly as “DRAFT” or “FINAL” avoids confusion and helps maintain a clear record.
Use Tags or Labels: If your system allows, use tags or labels like “Paid,” “Unpaid,” or “Overdue” to quickly identify the status of each invoice, making follow-ups more efficient.
Sending your invoice:
When sending your invoice, pay attention to the client’s preferred method of submission. Common options include email, client portals, or specific invoicing software. Following client instructions is essential to ensure your invoice reaches the right person and gets processed without delay.
Emailing Invoices: Attach the invoice PDF to your email and include a brief message stating the invoice number, amount, and due date. Use a clear subject line like “Invoice #001 – [Your Name/Business Name].”
Client Portals or Invoicing Software: If your client uses a specific portal (like FreshBooks, QuickBooks, or their own system), upload your invoice as per their guidelines. Some clients may require invoices to be submitted through their accounting software, which helps them keep records and speed up payment processing.
📌Downloads & Orders
This is how an editable field works in an invoice template. Download this file, open and try to type in the field.
If you wish to order a set of invoice templates that you can just edit and send to your clients, get in touch with us. You will get:
1 to 5 editable, single-page, reusable, A4 sized PDF templates according to your requirements
Customized with your details, logo, greetings and notes as per your specifications
Instructions for use - how to edit and save a non-editable version on Windows. You don't need any special software.
Any design of your choice from available Canva templates - customized with your preferred colors and fonts.
❌Common Mistakes to Avoid in Freelance Invoices
Even a small mistake in your invoice can cause delays in payment. Some common errors are:
1. Missing Essential Information: Forgetting to include basic details like your name, client’s details, or invoice date can cause confusion and delay processing. Always double-check that all fields are filled in.
2. Unclear Descriptions: Vague descriptions of the work performed make it hard for clients to verify and approve invoices. Be specific about the tasks completed, dates, hours worked, and rates.
3. Incorrect Formatting: Inconsistent formatting or a messy layout can make your invoice look unprofessional. Stick to a clean, simple format that highlights key information clearly.
4. Errors in Payment Details: A typo in your bank details or PayPal email can mean your payment goes astray. Double-check your financial information to avoid this costly mistake.
👉Tips for Proofreading Your Invoices:
Review your invoice carefully before sending it.
Cross-check all numerical entries, such as rates, quantities, and totals, to ensure accuracy.
Verify that all client information is correct and matches your agreement.
Check spelling, especially for names, addresses, and payment details, to ensure professionalism.
👉Tips for Optimizing Your Invoice for Faster Payments
Add a Clear Call-to-Action- Ensure your invoice clearly states when the payment is due. Use phrases like “Payment Due in 15 Days” or “Net 30” to set clear expectations. Including a due date and emphasizing it with bold text or different colors can make it stand out.
Specify payment instructions
Offer multiple payment methods
Send friendly reminders for late payments - If a payment is overdue, send a polite and professionally worded follow-up email. Invoicing software often includes automated reminder settings, but if you’re managing this manually, consider sending a gentle nudge a few days after the due date. Avoid sounding confrontational; instead, use phrases like “We noticed the payment for Invoice #001 is overdue. We would appreciate your prompt attention to this matter.” Or “Just a friendly reminder that Invoice #001 is past due. Please let us know if you have any questions!”
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