How to Invoice a Small Business Client

How do you invoice a small business client? Invoicing a small business can involve a few extra steps compared with invoicing an individual client. You may need to provide a purchase order number, use the company's legal name, send the invoice to a specific billing contact, and follow standard payment terms. Getting these details right can help prevent delays and unnecessary back-and-forth.

1. Confirm Who Should Receive the Invoice

The person who hired you may not be the person who processes invoices. Before sending your first invoice, ask which person, department, or email address should receive it. Some small businesses have a dedicated billing or accounts-payable contact that handles invoices and payments.

2. Use the Correct Business Name

Use the company's legal or registered business name when appropriate rather than an informal name or shortened version. If the client provides specific billing details, use the information they give you so the invoice matches their accounting records.

3. Include the Purchase Order Number

Some small businesses use purchase orders, also called POs, for projects or purchases. If the client gives you a purchase order number, include it clearly on the invoice. Some accounts-payable processes require the invoice to match the purchase order before payment can be approved.

4. Clearly Itemize Your Products or Services

A small business may need detailed invoice information for its own bookkeeping and expense records. Instead of combining everything into one total, list each product or service separately with useful descriptions, quantities, rates, and amounts. A clear itemized invoice makes it easier for the client to review and approve the charges.

5. Include the Invoice Number and Dates

Every invoice should have a unique invoice number, invoice date, and due date. Use the same numbering system you use for your other invoices so your records remain organized. See how to number invoices for common formats. A clear due date also tells the business exactly when payment is expected.

6. Confirm the Applicable Tax Requirements

Whether you need to charge sales tax, VAT, GST, or another tax depends on factors such as your location, registration status, the type of transaction, and sometimes the client's location. If you are unsure about your tax obligations, check the applicable local requirements or speak with a qualified accountant rather than guessing.

7. Set Clear Payment Terms

State your payment terms clearly on the invoice. Small businesses may use terms such as net 15 or net 30, depending on the agreement. Whatever payment terms you and the client agreed to, include them directly on the invoice so the billing document is clear and self-contained. Learn more in invoice payment terms explained.

8. Include Payment Instructions

Tell the client how they can pay. Depending on your business, this could include bank transfer details, a payment link, PayPal, card payment instructions, or another accepted payment method. Clear payment instructions reduce the need for additional emails before the client can make the payment.

What Should a Small Business Invoice Include?

A small business invoice should generally include your business information, the client's business information, a unique invoice number, invoice date, due date, itemized products or services, quantities, rates, subtotal, applicable taxes, discounts when relevant, total amount due, payment terms, and payment instructions. A purchase order number or project reference should also be included when the client requires one.

How to Avoid Small Business Invoice Delays

• Confirm the correct billing contact before sending the invoice.
• Use the client's correct legal or registered business name.
• Include a purchase order number when one was provided.
• Itemize products or services clearly.
• Check the invoice number and dates.
• Make sure applicable taxes are handled correctly.
• Include the agreed payment terms and due date.
• Provide clear payment instructions.

Small Business Invoice Pre-Send Checklist

• Correct business name and billing contact
• Purchase order number included when applicable
• Clear and itemized line items
• Correct invoice number and invoice date
• Specific payment due date
• Applicable tax information
• Agreed payment terms
• Accepted payment method and instructions
• Correct subtotal and final total

Frequently Asked Questions

Do I need a purchase order to invoice a small business?

Only if the client uses POs. If they give you a PO number, put it on the invoice, since their accounts-payable team may not pay without it.

Who should I send the invoice to?

Send it to the billing or accounts-payable contact the client gave you. If none was given, ask before sending your first invoice.

Create a Small Business Invoice Online

Our free invoice generator lets you add multiple line items, taxes, discounts, notes, invoice numbers, and payment information. You can use these fields to create a clear professional invoice for a small business client and download it as a PDF. For more guidance, read our complete guide on how to create a professional invoice and learn what information should be included on an invoice.