The Complete Invoicing Guide for Freelancers & Small Businesses
Everything you need to know about creating, sending, and managing invoices — from your very first invoice to getting paid consistently on time.
Guide Chapters
Chapter 1: What Is an Invoice?
5 minInvoice definition, types (standard, proforma, recurring, credit note), and when to use each.
Chapter 2: What to Include on an Invoice
6 minAll 9 required elements explained, plus optional fields and country-specific requirements.
Chapter 3: Invoice Payment Terms Explained
7 minNET 30, NET 14, COD, PIA, and every other payment term — what they mean and which to use.
Chapter 4: How to Generate an Invoice
8 min7-step guide to creating a professional invoice, plus 7 mistakes that delay your payment.
Chapter 5: How to Send an Invoice Online
5 min4 methods to send invoices online. Email best practices, follow-up sequences, and payment reminders.
Quick Reference: Invoice Payment Terms
| Term | Meaning | Best For |
|---|---|---|
| NET 7 | Payment due 7 days from invoice date | Small jobs, trusted clients |
| NET 14 | Payment due 14 days from invoice date | Standard freelance work |
| NET 30 | Payment due 30 days from invoice date | Corporate clients |
| NET 60 | Payment due 60 days from invoice date | Large enterprises |
| 50% Deposit | Half upfront, half on completion | New clients, large projects |
| Due on Receipt | Payment expected immediately | Small jobs, one-off work |
| 2/10 NET 30 | 2% discount if paid in 10 days; otherwise NET 30 | Encouraging early payment |
Key Invoicing Questions
What's the difference between an invoice and a receipt?▼
An invoice is sent before payment — it's a request for money. A receipt is issued after payment — it confirms money was received. Both are important financial records.
How long should I keep invoice records?▼
Typically 5–7 years depending on your country. In the UK it's 6 years, in the US it's 7 years for federal tax purposes, in India it's 6 years.
Can I create an invoice without a business?▼
Yes. Self-employed individuals and sole traders can invoice using their personal name or trading name. No company registration is required.
What happens if a client doesn't pay my invoice?▼
First, send payment reminders (day 3, day 8, day 15). If unpaid after 30 days, send a formal demand letter. After 60 days, consider a debt collection service or small claims court.
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