How to Invoice as a Contractor

Invoicing as a contractor ensures timely payment, maintains professionalism, and keeps your financial records accurate. To effectively invoice as a contractor, list your contractor information, the client’s details, and a unique invoice number. Include the date of the invoice and the payment due date, followed by an itemized breakdown of services provided, hours worked, and rates charged. Add any applicable taxes or discounts, specify payment terms, and include optional notes or supporting documents to clarify the work performed.

Include Your Contractor Information

Start your invoice with your personal or business information:

• Name or Business Name – Use the legal name registered for your business.
• Logo – Optional, but adds professionalism.
• Address – Street, city, postal code, and country.
• Contact Information – Email, phone number, and website (if applicable).

Example:

John Smith Plumbing
123 Oak Street
Denver, CO 80202
Email: john@smithplumbing.com | Phone: (123) 456-7890

Tip: Clear contractor information ensures the client knows who issued the invoice and how to contact you for questions or payment issues.

Add Client Information

Include the client’s details to avoid confusion:

• Client Name or Company Name
• Contact Person (if applicable)
• Address
• Email or phone

Example:

Thompson Residence
Attention: Emily Thompson
456 Pine Street
Denver, CO 80203
Email: emily.thompson@email.com

Tip: Correct client information helps prevent delays or misdirected payments.

Assign a Unique Invoice Number

Invoice numbers help track payments and simplify bookkeeping:

• Use sequential numbers (001, 002, 003…).
• Consider adding year or client codes (2025-001, THOMP-002).
• Maintain a record of skipped or voided numbers.

Tip: Consistent invoice numbering makes it easy to track and reference invoices during audits or client inquiries.

Include Dates

Dates set expectations for payment and provide context:

• Invoice Date – The date the invoice is issued.
• Due Date – The payment deadline, based on agreed terms (e.g., 30 days from the invoice date).

Example:

Tip: Clearly showing the due date reduces late payments and misunderstandings.

Itemize Your Services

Provide a detailed breakdown of the work you completed:

• Include service description.
• Specify hours worked or quantity of services.
• Include rate (hourly or fixed).
• Calculate line totals for each service.

Example:

Tip: Clear itemization helps clients understand what they’re paying for and reduces payment disputes.

Include Taxes and Discounts

If applicable:

• Sales Tax or VAT – Add the correct tax rate.
• Discounts – Early payment or loyalty discounts.
• Subtotal and Total – Sum everything clearly.

Example:

Tip: Clearly listing taxes and discounts ensures transparency and avoids disputes.

Specify Payment Terms

Payment terms tell the client how and when to pay:

• Accepted payment methods (bank transfer, check, PayPal, credit card).
• Payment due date – repeat the date for clarity.
• Late fees – optional but encourages timely payment.

Example:

Payment can be made via bank transfer:
Account Name: John Smith Plumbing
Account Number: 123456789
Bank: XYZ Bank
Payment is due by October 15, 2025. Late payments may incur a 2% monthly fee.

Tip: Clear payment terms reduce confusion and make it easier to collect on time.

Add Notes or Special Instructions

Optional section to include:

• Thank the client for their business.
• Reference project milestones or permits.
• Include instructions for recurring maintenance or service agreements.

Example:

Thank you for choosing John Smith Plumbing. Please include the invoice number in your payment reference.

Tip: Personalized notes maintain positive client relationships.

Attach Supporting Documents

Attach any relevant documents that support your invoice:

• Receipts for materials purchased.
• Timesheets for hourly work.
• Signed completion forms or project approvals.

Tip: Supporting documents reduce confusion and speed up payment approvals.

Review and Send

Before sending your invoice:

• Double-check all amounts, taxes, and totals.
• Verify client contact information.
• Confirm attachments open correctly.
• Send via email, invoicing software, or client portal.

Bonus Tip: Invoice as a Contractor with DepositFix Free Invoicing Software

Make invoicing simple and professional with the DepositFix free invoicing software for contractors. Quickly fill out, customize, and send invoices for your services, track payments, and ensure all details are accurate, helping you get paid faster while saving time.