To invoice as a freelancer, agree the price, payment terms and invoicing schedule with the client before you start; send a numbered invoice as soon as each piece of work is delivered; include your details, the client’s, a clear description of the work, the total, the due date and how to pay; and keep a copy of every invoice for your taxes.
You don’t need a company or accounting software to do this. You need a routine, and the discipline to follow it every time.
Agree the terms before you start
Most invoicing problems are agreement problems that show up late. Before you start work, settle and write down:
- The price and how it is calculated: hourly, daily, per word, per project or per milestone.
- What is included: the deliverables, the number of revision rounds, and what counts as extra.
- When you will invoice: at the end, monthly, or at milestones, and whether there is a deposit.
- Payment terms: how many days the client has to pay, and any late fee.
- Who to invoice: the name, address and email for invoices, and whether you need a purchase order number.
A short email that the client replies “agreed” to is far better than nothing; a contract is better still.
Hourly, daily or by the project?
| Method | Works well when | Watch out for |
|---|---|---|
| Hourly | Scope is unclear or changes often | Keep accurate time records; clients may want a timesheet |
| Daily | Work is on-site or in full days | Agree what counts as a day |
| Per project | The brief is clear and fixed | Define what is out of scope, in writing |
| Milestones | Longer projects | Tie each payment to something deliverable |
| Retainer | Ongoing work each month | State what the retainer includes |
On the invoice itself, hourly work is hours × rate; a fixed fee is a quantity of 1 at the agreed price. You can mix both on one invoice: a fixed project fee, plus extra hours for changes the client asked for.
Deposits
For larger projects and new clients, a deposit is reasonable: commonly a share of the fee before you start, with the balance on completion. Send a deposit invoice at the start. On the final invoice, show the full price, then the deposit received, then the balance due, so the record is complete.
A routine that works
- Use one numbering sequence. Every invoice gets the next number: INV-0001, INV-0002. The invoice number generator helps you choose a format.
- Invoice on the day you deliver. The longer you wait, the longer you wait to be paid, and the more the work fades from the client’s memory.
- Describe the work in the client’s words. Name the project, and the PO number if there is one. Write lines a finance team can approve without asking you.
- State the due date and how to pay. Give the date itself, not just “Net 30”, and all your payment details.
- Send it to the right person. Usually accounts payable, copying your client contact. See how to send an invoice.
- Record it. Keep the PDF and note the date sent, the due date and the date paid.
- Follow up on the day after it is due. A polite reminder, with the invoice attached again, settles most late payments.
Maya Okafor
1120 NW Couch Street, Apt 412 · Portland, OR 97209
maya@mayaokafor.com · (503) 555-0114 · mayaokafor.com
Invoice
No. INV-0042
Amount due
$2,025.00
Due Oct 15, 2026
Project
Autumn catalog copy · PO 4471
| Work | Hours | Rate | Amount |
|---|---|---|---|
| Research and product interviews | 6 | $75.00 | $450.00 |
| Catalog copy, 32 products | 18 | $75.00 | $1,350.00 |
| Revisions after review | 3 | $75.00 | $225.00 |
- Subtotal
- $2,025.00
- Total USD
- $2,025.00
A freelancer’s invoice: the project and PO number at the top, hours and rate, payment terms in the side column. Freelancer template
What to put on a freelance invoice
The essentials are the same as for any invoice: the word Invoice, a unique number, the date, your name and contact details, the client’s name and address, each piece of work with hours or a fee, the total, the due date and how to pay. Add your tax ID and any tax you charge if you are registered. The complete list is in what to put on an invoice.
You can invoice under your own name. If you use a trading name, put it on the invoice with your own name if your bank account is in your name, so the payment and the invoice match.
Expenses
If you agreed that the client pays certain costs (travel, stock images, software, printing), invoice them as separate lines at cost and keep the receipts. Don’t add expenses that weren’t agreed; ask first.
Taxes
Rules differ by country, and this is not tax advice, but three points apply almost everywhere:
- Income tax: what clients pay you is income. Clients don’t usually deduct tax for freelancers, so put some aside from each payment. In the US, a client who pays you more than the IRS reporting threshold in a year may send you a Form 1099-NEC, and will usually ask you for a W-9 first.
- Sales tax, VAT or GST: you may need to register and charge it once your sales pass a threshold, or for certain kinds of work. Once registered, your invoices must show it correctly.
- Records: keep every invoice and the dates you were paid. Your invoices are the basis of your income records.
When a client pays late
Remind them politely the day after the due date, then again a week later. Most late payments are about process (the invoice went to the wrong inbox, a PO number was missing) rather than unwillingness. If an agreed late fee applies, mention it in the second reminder, not the first. How to invoice a client covers late payment in more detail.