Invoicing Basics
What Should Be Included on an Invoice? (Checklist)
What should be included on an invoice? A professional invoice should clearly show who is billing, who is being billed, what was provided, how much is owed, when payment is due, and how the client can pay. Including the right information makes an invoice easier to understand, process, and keep for future records.
Invoice Checklist: What to Include on an Invoice
- Your business name and contact details
- Client name and billing address
- A unique invoice number
- Invoice date and payment due date
- Description of each product or service
- Quantity, rate, and amount for each line item
- Subtotal, taxes, and discounts
- Total amount due (with currency)
- Payment terms and payment instructions
- Optional notes, such as a PO number or thank-you message
Business or Sender Information
Include your name or business name, address, email address, and phone number when relevant. If you have a registered business number or tax ID that is required in your country, include it as well. This information makes it clear who issued the invoice and how the client can contact you.
Client or Customer Information
Add the client's name or company name and billing address. If you're invoicing a larger business with multiple departments, confirm which contact or department should receive the invoice so it reaches the right person for approval and payment. Our guide to invoicing a small business client covers this in more detail.
Invoice Number
Every invoice should have a unique invoice number. A simple sequential system such as INV-0001, INV-0002, and INV-0003 makes invoices easier to track. Both you and your client can use the invoice number when discussing payments, accounting records, or previous transactions. Learn more in how to number invoices.
Invoice Date and Due Date
The invoice date shows when the invoice was issued, while the due date tells the client when payment is expected. A specific payment deadline is much clearer than vague terms such as "pay soon" and gives you a clear date to use when following up on an unpaid invoice. See invoice payment terms explained for options like Net 15 and Net 30.
Description of Goods or Services
Clearly describe each product or service included on the invoice. The description should provide enough detail for the client to understand exactly what they are being charged for. For example, "3 hours of website development" is more useful than simply writing "Development."
Quantity and Rate
Show the quantity and rate separately whenever applicable. This could be hours, units, sessions, or other measurable quantities. Showing the rate per unit makes the calculation transparent and allows the client to verify the invoice without having to ask for an explanation.
Subtotal
The subtotal is the total of all line items before taxes and discounts are applied. Showing the subtotal gives the client a clear checkpoint for understanding how the final invoice amount was calculated.
Taxes
If you are required to charge sales tax, VAT, GST, or another applicable tax, show it separately on the invoice. Include the applicable percentage and amount when appropriate. Tax requirements vary by country, business type, and registration status, so check your local requirements or ask a qualified accountant if you're unsure whether you need to charge tax.
Discounts
If you offer a percentage or fixed discount, display it as a separate line on the invoice. This keeps the original price visible and makes it clear to the client how the discount affected the final amount.
Total Amount Due
The total amount due is the final amount the client needs to pay after discounts and applicable taxes. Display this amount prominently, with the currency, so the customer can quickly identify the balance owed.
Payment Terms and Instructions
Explain when and how the client should pay. Depending on your business, this might include bank transfer details, a payment link, PayPal, card payment instructions, or other available payment methods. You can also include late-payment terms if they apply to your agreement with the client.
Notes
Use the notes section for additional information that may help the client. You can include a short thank-you message, purchase order number, project reference, delivery information, or other instructions relevant to the invoice.
Sample Invoice Example
Here is a simple example of how the information above fits together on a finished invoice:
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Homepage redesign, two rounds of revisions | 1 | $900.00 | $900.00 |
| Extra subpage design | 2 | $100.00 | $200.00 |
| Website copy editing (hours) | 2 | $50.00 | $100.00 |
| Subtotal | $1,200.00 | ||
| Tax (0%) | $0.00 | ||
| Total due by March 21 | $1,200.00 |
Below the table, add the business and client details at the top, plus payment instructions such as bank transfer details or a payment link.
What Should a Good Invoice Look Like?
A good invoice should be clear, accurate, easy to read, and organized. The client's details, invoice number, dates, descriptions, quantities, rates, subtotal, taxes, discounts, total amount, and payment instructions should be easy to find. Avoid unnecessary information that makes the invoice difficult to understand.
Common Invoice Mistakes to Avoid
Common invoice mistakes include missing invoice numbers, incorrect client information, unclear descriptions, calculation errors, missing due dates, and incomplete payment instructions. Read our full list of common invoice mistakes and review every invoice before sending it to prevent confusion and payment delays.
Frequently Asked Questions
What should be on an invoice?
At minimum: your business details, the client's details, a unique invoice number, the invoice date and due date, a description of what you provided, the amounts and total due, and payment instructions. Taxes and discounts are added when they apply.
What to include on an invoice for freelance work?
Freelance invoices should also state the currency, show hours or the project fee clearly, and list any deposit already paid. See our freelance invoice guide for details.
Is an invoice number required?
In practice, yes. A unique invoice number makes the invoice easy to track and reference, and many countries require sequential numbering for tax purposes. Check your local rules if you are unsure.
Do I need to include tax on an invoice?
Only if you are required to charge tax. That depends on your country, business registration, and the type of sale. If tax applies, show it as a separate line with the rate and amount.
What is the difference between an invoice and a receipt?
An invoice requests payment, while a receipt confirms payment was received. See invoice vs receipt for a full comparison.
Create an Invoice Online
Now that you know what should be included on an invoice, creating one is easy. Our free invoice generator lets you enter your business details, client information, invoice number, items, prices, taxes, payment terms, and notes, then download a professional invoice as a PDF. New to invoicing? Start with how to create a professional invoice.