Invoices might not be the most exciting part of running a business, but they’re one of the most important. A well-crafted invoice reinforces your brand, sets the tone for future interactions, and can impact how quickly you get paid. An easy-to-read, professional-looking invoice tells clients you value their time and appreciate the relationship. It clarifies the services or products they’re paying for and leaves no room for miscommunication, which means fewer back-and-forth emails and payment delays. With 22% of US small businesses struggling to pay their bills due to cash flow issues, efficient invoices that encourage timely payments can make a big difference.

In this article, we’ll look at how to create a clear, visually appealing, and detailed invoice template to save time and get you paid. We’ll also explore how to set the terms and choose the right format for your industry.

What’s in this article?

• How to create a basic invoice layout
  
• How to choose the right format for your invoice
  
• How to customize invoices for different industries and clients
  
• How to set payment terms and conditions on your invoice
  

How to create a basic invoice layout

Creating a functional invoice layout doesn’t require design expertise. You just need to follow a few best practices to make sure your invoice is easy to read and looks professional. Here’s a simple guide on how to structure an invoice.

Header with company details

State your business name and contact information at the top of the invoice. Use your full business name as registered (without abbreviations or shorthand), and make sure the address, phone number, and email are all current. If you have a logo, include it in the header. Logos are more than a nice visual touch—clients might recognize visual branding faster than they read text.

Client information

Directly below your own details, include the client’s full name or company name and address. If the invoice is going to a specific person within the organization, add their title or department to avoid delays. It’s also helpful to include their phone number and email address here, so you can use the invoice to follow up directly with any questions.

Invoice details and due date

Every invoice needs a unique identifying number. Choose a numbering system that works for you (e.g., sequential, date-based, or a unique code for each project), so you and your client can easily track payments. Include the date you’re issuing the invoice in addition to the payment due date (typically something like “Due upon receipt” or “net 30”).

Itemized list of products or services

In this section, detail exactly what you’re billing for with a brief, simple description of each product or service. List quantities or hours, your rate per item or per hour, and then show the total for each line. Being thorough in this section can help cut down on questions and make it easy for clients to account for each item or service received.

Subtotal, taxes, and discounts

Once you’ve listed all charges, add up the line items for a subtotal. Then, if applicable, show any taxes, along with the rate and total amount. If you’ve agreed on a discount with the client, show the amount and note any specifics (such as whether it’s a first-time customer or bulk discount), so they know what’s reflected in that line.

Total amount due

Make this final amount impossible to miss. Use bold or a slightly larger font, and keep it separate from other figures so it’s easy to spot.

Payment terms and methods

Right under the total, include instructions for how the client can pay, including what payment methods you accept. Specify where the payment should go and any reference information required, such as an account number for a bank transfer. If you charge late fees, include your policy here.

Additional notes or terms (optional)

You can end the invoice with a short thank-you message. Something as simple as “Thanks for your business” can leave a good impression. The footer is also the place to include legal details, policies, or other relevant terms, such as your refund or return policy. Finally, add a quick note on how customers can reach you if they have questions.

How to choose the right format for your invoice

The right invoice format depends on your workflow and what makes the process easier for your clients. Here’s a quick guide to help you pick the best option.

PDFs

PDFs are a common choice for invoices. They’re easy to send by email, appear polished, and keep your formatting consistent across devices. PDFs are also secure: you can add password protection or a digital signature if you want another layer of privacy.

Digital invoices

Digital invoicing services such as Stripe Invoicing are known for their convenience. Stripe Invoicing allows your clients to easily pay online, by credit card, bank transfer, or other options, right from the invoice. Digital platforms make it simple to track outstanding payments, set up recurring invoices, and automate follow-ups—saving you time and administrative work.

Paper invoices

Paper invoices are becoming more and more rare, but they’re not obsolete. Some clients—especially in more traditional industries—still prefer a physical invoice for their records. If a client specifically requests one or if it’s a legal requirement, you should produce a paper invoice.

How to customize invoices for different industries and clients

Customizing invoices across industries and based on the type of client can make a real difference in the billing process. Here are some tips for what to include in several invoicing scenarios:

• Creative or consulting work: Issue these clients detailed invoices. Include an itemized list of services, hours, or project phases, so they know exactly what’s included and the rate they’re being charged. Add project codes or references to help clients match invoices with their internal records.

• Retail or product-based industries: Focus on clarity and speed when invoicing for product-based businesses. Include product stock keeping units (SKUs), quantities, and delivery dates, so they can process payments quickly. Consider adding any applicable tax IDs or shipping details on the invoice for easy reference.

• Contractors or service-based professionals: If you work with construction, IT, or another service-based industry, be sure to include project milestones or stages on invoices. If you’re invoicing for a large project, break down the invoice by project phases to help clients budget and understand what’s covered.

• Long-term clients: When invoicing clients you’ve worked with longer term, consider adding a touch of personalization, such as thanking them for ongoing business. Even small details that reflect the client’s needs or your relationship show you’ve put thought into their billing experience, which can help encourage prompt payment.

How to set payment terms and conditions on your invoice

Payment terms can make or break when and how you’re paid, so they should be unambiguous but still friendly. Use straightforward language to clarify when payment is expected and what’s required to avoid misunderstandings. Here’s what terms to include.

Payment due dates

Choose terms that work for your business. These terms might be “Due upon receipt,” “net 15,” “net 30,” or custom terms that fit your project timeline. Be clear and specific: if a payment is due within 14 days of invoicing, state that plainly. Set a specific date rather than a general time frame, so payment terms are clear and actionable.

Accepted payment methods

Include a quick rundown of the payment options you accept (e.g., credit cards, bank transfers, digital wallets), so clients know how to pay. If you prefer one method or charge a fee for a particular option, make this clear, so clients can make an informed decision.

Late fees and early payment incentives

For businesses that charge late fees, add a line about the rate (e.g., 2% per month past due) and time frame for fees being assessed. This policy encourages timely payments, and it ensures clients are aware of any penalties. Offering a small discount for early payment can also help motivate clients to pay ahead of schedule.

Project-specific terms

You might have additional terms for certain projects, such as deposit requirements, payment schedules, or refund policies. Include these terms on the invoice to reinforce prior agreements.