How to Invoice as an Independent Contractor

To invoice as an independent contractor, gather project details, client info, and payment terms. Create a clear, professional invoice with itemized services, send it promptly, and offer multiple payment options like credit card, ACH, or checks. Track payments, follow up on overdue invoices, and maintain records for taxes. Use DepositFix to generate invoices quickly, accept payments online, and even pass processing fees to clients, streamlining your workflow and improving cash flow.

Gather All Relevant Project Details

Before you create an invoice, collect all the information related to the work you performed:

• Client information: Name, company, address, and contact info.
• Project or service details: Description of the work completed.
• Hours worked or milestones completed: Track exact hours or deliverables.
• Payment terms agreed upon: Rate, due date, and any late fees.

Example: A freelance carpenter completing a kitchen remodel should list the specific cabinets installed, countertop preparation, and installation hours on the invoice.

Choose a Clear and Consistent Invoice Format

Using a professional, consistent invoice format ensures clarity and avoids confusion. Key elements to include:

• Invoice number: Sequential or project-based.
• Invoice date and due date.
• Itemized description of services: Include hours, rates, or project milestones.
• Taxes, discounts, or additional fees (if applicable).
• Total amount due.
• Payment instructions: Bank account, ACH, or credit card details.

Example:

Send the Invoice Promptly

Invoice immediately after completing work or delivering a milestone. Delaying invoicing can confuse clients and slow payments.

Tips:

• Send invoices digitally via email for speed and tracking.
• Include a friendly message summarizing the work completed.
• Attach the invoice as a PDF to maintain formatting and professionalism.

Example:

“Hi [Client Name], attached is the invoice for the completed cabinetry installation. Payment is due by [Due Date]. Thank you for your business!”

Offer Multiple Payment Options

Allowing clients to pay in ways convenient for them increases the likelihood of timely payment:

• Credit card payments: Process via DepositFix.
• Bank transfers (ACH): Especially for larger invoices.
• eChecks: Optional for clients who prefer traditional methods.

Example: A landscaper might email an invoice via DepositFix with a “Pay Now” button for credit cards, while also including ACH details for a larger project payment.

Track Payments and Follow Up

Keep a record of all invoices sent, payments received, and outstanding balances:

• Maintain a spreadsheet or use software to track invoices.
• Set reminders for follow-ups if payments are overdue.
• Apply late fees if previously agreed upon in your contract.

Example: If a contractor sends an invoice for $2,000 on July 1 and hasn’t received payment by July 15, a polite follow-up email can remind the client and include the original invoice for reference.

Maintain Professional Records for Taxes

Independent contractors must track income for taxes:

• Save invoices and payment receipts for at least 3–5 years.
• Record income in accounting software like QuickBooks.
• Categorize expenses and payments for deductions and tax filing.

Example: A freelance electrician should keep all invoices and payments from multiple clients organized by date and project to simplify quarterly tax reporting.

Bonus Tip: Invoice as an Independent Contractor with DepositFix

DepositFix allows independent contractors to create and send professional invoices quickly. You can issue digital invoices, accept credit card payments, and even transfer processing fees to clients, saving time and improving cash flow.

Try the DepositFix Free Invoice Generator to start invoicing more efficiently today.