How To Prepare An Invoice For Services Rendered

Not everyone is in the business concern of selling tangible products. Instead, many entrepreneurs receive payment for their fourth dimension and valuable skills. Today, we'll show yous how to write an invoice for services rendered, and then y'all tin can more than effectively bill your clients later completing a project.

What is a service invoice?

An invoice is a document that a company sends to a customer. It serves to asking payment for goods or services. Invoices function like bills, and many times, the two terms are used interchangeably. However, an invoice typically contains a bit more information than a nib -- and this is certainly true for a service-based invoice.

A service invoice is a document that requests payment for services provided. It tends to exist organized around a particular project.

Service invoices can be used by a multifariousness of professionals, including:

Lawyers
Writers
Web designers and developers
Construction companies
Full general contractors
Photographers
Landscapers
Freelancers

Basically, someday you complete a job or projection, you'll send an invoice for services rendered during the process. In some cases, you might ship a service invoice after completing a particular phase of a larger project, though this requires agreement with your client beforehand so y'all both understand the invoicing process.

Utilise an invoice template

One of the easiest ways to transport an invoice for services rendered is to utilize an invoice template. Concern invoice templates can save you lot time, as you won't have to write invoices from scratch after every job. This can be peculiarly helpful when you're providing a standardized service or working on a routine ground.

An invoice template will continue your own business details the same for each document, but provide space for you to fill up in the information that is unique to a specific client.

At Invoice2go, a Nib.com visitor, nosotros provide free invoice templates on our website. We offering customizable invoice templates that tin be used for a variety of industries, including:

Marketing
Consulting
Freelancing
Construction
Legal
Artistic professionals

You can download a gratis invoice template as a Microsoft Word certificate, Excel spreadsheet, or a PDF file that tin can exist easily sent to your valued clients.

How to create invoices for a service-based business

If you'd adopt not to apply a free invoice template, you lot can always create your own. Below, we'll walk y'all through the step-past-pace process of creating your own professional person invoices. You lot can even catechumen the finished product into an invoice template that can be reused in the futurity.

one. Start with your company logo

Your service invoices can be used to aid build your brand. Simply insert your business logo on the peak of each invoice (usually centered) just as y'all might when you send a business alphabetic character.

If you don't have a business logo, write your company name on the very peak in assuming, distinct lettering. This will aid your business stand up out and increase brand sensation with your clients.

2. Clearly label the document as an "invoice"

Earlier y'all list whatever contact data for you lot or your client, it's helpful to characterization the document as an actual invoice. That style your clients instantly recognize the invoice document and empathise its specific purpose. Plus, it may prompt them to skim downwardly to meet the due date, ensuring that you receive timely payments for all the services you've provided.

3. List your business proper noun and contact information

Your business proper name may already be in your logo, but information technology never hurts to echo information technology when you're listing your concern information. Beneath your name, include as many contact details as necessary.

This includes such information as:

Your business address
Personal betoken-of-contact
Phone number
Fax number
Website URL

The goal is to provide your clients with the ways to contact you if they take any questions about the invoice.

When creating an invoice template, you lot tin can simply leave the above information in identify, since this data will remain constant for every service invoice you create.

4. Add your customer's name and contact information

Below your business details, you'll list your customer information. This includes their contact details, such equally their business proper noun, business organization address, and any specific contact information relating to their concern.

In some cases, you might be dealing with one detail individual or the customer'south billing section. You can specify these individuals past including "ATTN:" at and their proper noun earlier list the other customer details.

5. Assign a unique invoice number

Every service invoice you ship should include a unique invoice number. This number serves the invoice procedure by providing a way to proceed runway of your service invoices. You lot tin can also friction match them with purchase orders or other information for accounting and accounting purposes.

If you're not sure of the proper invoice number format, don't sweat it. Simply label your first invoice as "001," and yous'll exist able to submit roughly ane,000 invoices before having to change your numbering arrangement.

Some pocket-size business owners like to include a specific customer number as part of their numbering method, which can likewise help you lot to group invoices by client.

6. Record the invoice date

Below the invoice number, record the invoice date. Remember, this is the issuing date of the service invoice, not the date that your professional person services were provided. This can be helpful in establishing due dates and serve every bit a timeline for tracking payment condition.

Alternatively, some minor businesses might just include the date of their billing period rather than the bodily date of the invoice. This means you tin tape a monthly period such as Feb i--Feb 28, or whatsoever length of time defines your company's standard billing menstruation.

7. Provide a listing of all services rendered

Here is where your service invoice will differ most from other invoice types. When you write an invoice every bit a retailer or supply company, you would use this department to document all of the products sold to your customer, as well as the cost of each detail.

A service-based business will produce a different kind of invoice birthday. To invoice for services rendered, you lot'll compile a detailed list of each service or job you performed. This includes:

A cursory clarification of the services provided
The amount of fourth dimension spent on each service
The rate of pay for each service; could be a apartment or hourly rate
The dates upon which each service was performed

Be every bit specific every bit possible. A service-based invoice should brand information technology like shooting fish in a barrel for your customers to review your invoice and understand exactly what yous're billing them for.

eight. Record the subtotal

Once yous finalize the list of services rendered on your invoice, you tin can calculate the subtotal. Remember that for a service-based invoice, y'all'll probable be multiplying the hourly cost of your services past the number of hours you lot or your staff members spent working on a project.

9. Record the grand total

Below the subtotal, y'all can tape the grand full. This volition include sales tax, any boosted fees or charges, and whatsoever discounts that may utilise. For example, if there are any commitment fees or processing charges, you may apply them here to summate the grand full. Simply make sure to talk to your clients beforehand and so they aren't surprised by any surcharges once they receive the final invoice!

ten. List your payment methods

What payment methods do you have? It often helps your clients pay on time when they have multiple payment options to choose from.

At the same time, if you have a way that y'all'd prefer to receive payment, y'all can specify this method here under your payment details.

11. Specify any payment terms

Some pocket-size businesses set a payment due engagement and assess fees for any late payments they receive. This is often 10% to xv% of the invoice, though the exact amount is up to each business owner.

Besides, some small businesses set up a due date equally far out equally 30 days from the invoice date.

These payment terms tin can assist yous avoid delayed payment, though every bit with other details, it's important to be upfront with your clients then they know what to expect. Yous can also encourage customers to pay early on by offering a pocket-size (v% to 10%) discount for anyone who pays inside vii days of receiving an invoice.

12. Thank the customer

Sending a professional person invoice doesn't mean you can't be friendly! Offering your customer a brief word of thanks can go a long style to cultivating potent client relationships. Information technology may even encourage repeat business.

You can also echo your most immediate contact information here so the customer tin can rent you for another projection if they were pleased with your work from the get-go round.

Use the latest invoice software

The methods we've shown you can be a great way to create your own invoice template, but if you lot're a solo entrepreneur, contained contractor, or freelancer you tin save even more fourth dimension past relying on an invoicing software platform. These innovative systems allow you and your customers to conduct business with greater ease. Helpful features allow you lot to perform such essential modest business functions as:

Creating and sending invoices
Collect online payments
Rails payment status
Sending automated payment reminders

When you let clients to pay online, you'll get paid faster without the hassle of a lot of follow up. You can apply this software regardless of whether you lot sell products or offering a specialized service. And when you trust an innovative software provider like Invoice2go, you can create and send invoices with ease. You lot can fifty-fifty collect payment through the user-friendly mobile app!

Changing the style you do business concern

Every bit a small business owner, you know better than anyone that time is money. Then why are you spending your time submitting invoices the erstwhile-fashioned way? With Invoice2go, you tin can save time by using an invoice template and cutting-border software to send invoices and collect payments faster than always before.

If you lot like the free invoice templates we offer on our website, and then consider signing up for our free 30-solar day trial. You lot'll get access to a wealth of resource that can streamline the style you provide services to your clients.

Frequently asked questions

Got questions for the invoicing experts? Here are some of the about common questions we hear from clients in service-based industries:

Is an invoice legally binding?

This is a common question, and unfortunately, the reply is "no." An invoice is nothing more than than a asking for payment. By itself, information technology does non constitute a legally-binding arrangement, like a contract. Customers are able to dispute the contents of the invoice, which can be problematic since it's harder to refund the client for services rendered.

If the client had previously submitted a purchase order -- and both yous and the client had signed it -- or if you lot had drawn up a concern contract, then you have legal recourse in the event of an unpaid invoice. But otherwise, no; an invoice is not a legally-binding document.

Should I use a dissimilar numbering system for service invoices?

What if your company sells products and provides services? Should y'all use a different numbering system for each type of invoice?

Obviously, every invoice should accept its own unique number, which helps you and your customers continue track of their orders. While it's possible to apply two different numbering systems, this is often just more confusing. Information technology will be simpler to utilise the same numbering system for your service invoices and your product invoices.

Should I use a dissimilar invoice template for service invoices?

While many of the details listed on your invoice will remain constant, the description of services will look very different from invoices sent for products or trade.

If yous offer multiple types of services, y'all might desire to consider using different invoice templates. Yous can apply ane template for the sale of products, another for ane type of service, and additional templates that cover any other services if they differ significantly from 1 another.

With that being said, the main section that should alter is the description of services rendered (Step vii above). Maintaining consistency in other fields tin can help avert confusion when y'all're communicating with clients.