How to make an invoice, step by step

Making an invoice takes a few minutes once you know what goes on it. This guide walks through each step in order, with worked examples, so your first invoice is complete and correct and the next ones are quicker.

If you are not sure what an invoice is for, start with What is an invoice.

Before you start: what you need

Gather these before you open a template or tool:

• Your business name, address and contact email.
• Your tax registration number, if you have one (for example a GSTIN in India or a VAT number in the UK or EU).
• Your client's legal name and billing address, and their tax number if they are a registered business.
• What you supplied, in what quantities, at what prices, and on what dates.
• The payment terms you agreed, such as payment within 30 days.
• How you want to be paid: bank details, a payment link, or both.

Step 1: Choose how you will make it

You have three practical options:

• A word processor or spreadsheet template. Free and flexible, but you must number invoices, add up totals and calculate tax by hand, and keep your own records.
• An online invoice generator. Fill in a form, and the totals and tax are worked out for you. Good for occasional invoices.
• Invoicing software. Keeps clients, numbering, payments and reminders in one place. Worth it once you invoice regularly.

Step 2: Add your details and your client's

Put your business details at the top: name, address, email and tax number. Then add the client's details under a heading such as "Bill to". Use the client's legal name, not a nickname or a contact person's name, because their accounts team will match the invoice against a supplier record.

For business clients in VAT or GST systems, include their tax number. In India, a business buyer needs their GSTIN on your invoice to claim input tax credit. In the EU, a reverse-charge invoice to a business in another member state must show both parties' VAT numbers.

Step 3: Give it a unique invoice number

Every invoice needs a number that has never been used before. Most businesses use a simple sequence with a prefix, such as INV-0001, INV-0002, or a year-based series such as INV-2026-0001. Never reuse a number, and do not delete an invoice once issued; cancel it with a credit note instead. Our guide to invoice numbers covers formats and the rules in different countries.

Step 4: Add the dates

An invoice usually carries two or three dates:

• Issue date. The date you create and send the invoice, for example 12 Oct 2026.
• Supply date. When the goods were delivered or the service was performed, if different from the issue date. Some VAT and GST rules use this date for the tax period.
• Due date. The date payment is due, for example 11 Nov 2026 for Net 30.

Write dates in a format nobody can misread. "12 Oct 2026" means the same thing everywhere, while 10/12/2026 is 12 October in the US and 10 December in most other countries.

Step 5: List what you are charging for

Add a line for each product or service. Each line should have a clear description, a quantity, a unit (hours, days, items), a unit price and the tax rate. Vague lines such as "Services" invite questions and slow down approval. "Website design, 8 pages, as quoted on 2 Oct 2026" does not.

Here is a worked example for a US freelancer:

Many US states do not tax this kind of service, so the sales tax line is zero here. That depends on the state and the service, so check yours.

Step 6: Work out tax

If you are registered for VAT, GST or sales tax, calculate tax on each line at the correct rate and show the tax separately from the price. If you are not registered, do not charge tax and do not show a tax line that suggests you did.

A worked example for an Indian business supplying a client in the same state at 18% GST:

If the client were in a different state, the invoice would show IGST at 18%, ₹18,000.00, instead of CGST and SGST. Exports of services from India can be zero-rated; see How to invoice international clients.

Step 7: Show the totals clearly

Show the subtotal, each tax amount by rate, any discount, and the total due in bold. State the currency, especially if you bill clients abroad. If you have received an advance, show it as a deduction so the balance due is unambiguous.

Step 8: State payment terms and how to pay

Write the terms in words as well as the due date: "Payment due within 30 days of the invoice date (Net 30)". Then make paying easy:

• Bank transfer details: account name, account number, and the bank code your client needs (routing number, sort code, IFSC, or IBAN and SWIFT/BIC for international payments).
• A payment link, if you accept cards or online payments.
• The invoice number as the payment reference, so you can match the money when it arrives.

If you charge interest on late payments, say so on the invoice and make sure your contract allows it. Our guide to Net 30 payment terms explains common terms and late payment rules.

Step 9: Send it and keep a copy

Send the invoice as a PDF or a link, addressed to the person who approves payments, not only your day-to-day contact. Keep a copy in your records: tax authorities can ask for invoices years later. Then track it. A short, polite reminder a few days before the due date and on the day after it is missed recovers most late invoices.

Mistakes that delay payment

• Sending the invoice to the wrong person or a general inbox.
• Missing a purchase order number the client asked for.
• Unclear line descriptions that the client's approver cannot match to the work.
• No due date, or a due date that does not match the agreed terms.
• Missing bank details, or details that are hard to copy.
• Arithmetic errors in totals or tax, which force a corrected invoice.

A quick checklist

1. Your details and tax number.
2. Client's legal name, address and tax number.
3. Unique invoice number.
4. Issue date, supply date if different, and due date.
5. Clear line items with quantities and prices.
6. Tax at the correct rate, shown separately.
7. Subtotal, tax and total due, with the currency.
8. Payment terms and how to pay.
9. A copy saved in your records.