A service bill is a document provided to a customer that outlines services rendered, the associated costs, and the payment terms. It acts as both a record of the transaction and a request for payment. Unlike a product invoice, a service bill specifically lists tasks or work completed—such as consulting, repairs, and freelance projects—and includes a breakdown of hourly rates, flat fees, or other charges.

The formatting is important, and a well-structured service bill makes it easier for clients to quickly understand what they’re being charged for and how to pay. This can minimize confusion, avoid disputes, and often speed up the payment process.

Below, we’ll explain what you need to know about service bills, from what information to include to what software to use to create them.

What’s in this article?

• What key details should a service bill include?
  
• How should you structure a service bill?
  
• How are service bills and product invoices different?
  
• What software can businesses use to create service bills?
  
• How can you customize the format of a service bill for different industries?
  

What key details should a service bill include?

A good service bill should be simple, clear, and easy to understand. Here’s what it needs to include:

• Your information: Your name, business name, contact details, and logo, if you have one

• Client information: Their name, business name, and contact details

• Bill number: A unique number so you (and your client) can easily track the bill

• Date: The day you sent the bill

• Due date: When the payment is due

• Services rendered: The name of the service (e.g., “website design,” “consulting hours”), a short description, the quantity (e.g., billable hours, tasks completed), and price per unit

• Total amount due: The total, including any taxes or discounts

• How to pay: Clear instructions on how the client can pay you, including what payment methods you accept, terms, and details about any late fees

• A short thank-you: A brief word of gratitude or reminder to stay in contact about future work opportunities

How should you structure a service bill?

To structure a service bill so it’s clear and easy to follow, think of it like a well-organized checklist. You want your client to quickly see what they’re being billed for, how much they owe, and how to pay. Here’s a simple way to format one:

• Service: Graphic design
  
• Description: Logo redesign project
  
• Qty: 10 hours
  
• Rate: $50/hr
  
• Total: $500
  
• Total due: $500
  

Be sure to include:

• A short title for each service (e.g., “graphic design work”)

• A brief description, if needed (e.g., “logo redesign, 3 revisions included”)

• Quantity

• Price per unit

• A line item total for each service

Below your list of services rendered, display the following:

• Subtotal: This is the total before additions, including any taxes or discounts.

• Final total: Make this bold or highlight it so it’s obvious.

Make it as easy as possible for customers to pay by including:

• Your preferred payment methods (e.g., bank transfer, credit card)

• Any account numbers or links they’ll need

• Any payment terms (e.g., “Please pay within 15 days”)

How are service bills and product invoices different?

The main distinction between service bills and product invoices is what you’re billing for: time and effort vs. physical goods. Here’s a closer look.

What you’re billing for

• Service bill: This document covers work you’ve done or time you’ve spent on a billable task. It focuses on hours worked, tasks completed, or milestones reached.

  • Example: “10 hours of website development at $50/hr = $500”
    

• Product invoice: This invoice covers charges for physical goods or products sold with a focus on quantities and unit prices.

  • Example: “5 pairs of shoes at $80 each = $400”
    

How it’s described

• Service bill: Descriptions are often more detailed because services can be less tangible. You might list the specific tasks completed, hours worked, or even phases of a project.

  • Example: “Search engine optimization (SEO) for 3 web pages, including keyword research and content updates”
    

• Product invoice: Descriptions are usually more straightforward since products are physical items. You list what the product is, its quantity, and its price.

  • Example: “Ceramic coffee mugs, quantity: 3, $10 each”
    

How you calculate costs

• Service bill: Costs are often based on time (e.g., hourly rates) or a flat fee for the work. Sometimes, the bill includes milestones or phases of a project.

  • Example: “5 hours of IT support at $75/hour = $375”
    

• Product invoice: Costs are based on unit price and quantity sold.

  • Example: “20 notebooks @ $3 each = $60”
    

Taxes

• Service bill: Taxes vary depending on the type of service and local rules. Some services are tax-exempt.

• Product invoice: Taxes are more standard since most physical goods are taxable.

Proof of delivery

• Service bill: Since services aren’t physical, there’s usually no shipping or delivery note. Instead, proof might include a signed agreement, project completion notes, or work logs.

• Product invoice: This typically comes with shipping details, a delivery date, and sometimes tracking information to confirm the goods were received.

Quick recap

• Service bills are for work done (e.g., design, consulting, repairs).

• Product invoices are for physical items sold (e.g., clothes, electronics, books).

Ultimately, both serve the same purpose: getting you paid. The difference is in what you’re billing for and how you explain the charges.

What software can businesses use to create service bills?

Stripe is a top choice for creating polished service bills because it’s built for both invoicing and payment collection. Here’s how Stripe can help, along with other tools that integrate well.

Stripe Invoicing

Stripe has its own built-in invoicing tool that makes creating service bills easier and more efficient. Stripe Invoicing includes the following:

• Customizable templates: You can add your logo and business details and itemize services.

• Automated payment links: Stripe invoices and bills include a “Pay this invoice” button so clients can pay directly with a credit card, debit card, bank transfer, or other preferred method.

• Tracking and reminders: Stripe tracks when your client pays the bill and can send automated reminders for unpaid invoices.

• Recurring billing: This capability is especially valuable if you charge for ongoing services.

• Why it’s great: Stripe unifies invoicing and payments in one system. No extra tools or manual follow-ups are required.

QuickBooks

QuickBooks works well for freelancers and small businesses that want to manage their finances and create invoices and bills. It has these features:

• Service billing: QuickBooks creates detailed service bills with descriptions, hours worked, and rates.

• Stripe integration: It connects with Stripe to accept payments.

• Expense tracking: QuickBooks automatically tracks and organizes expenses with your service income.

• Why it’s great: It combines accounting, billing, and Stripe payments in one platform.

FreshBooks

FreshBooks is a user-friendly invoicing and accounting tool that’s ideal for service-based businesses. Here’s what it offers:

• Skillful invoices: Easily customize service bills with your branding and service details.

• Time tracking: Track your hours and automatically convert them into billable line items.

• Stripe integration: Send bills with payment links through FreshBooks Payments powered by Stripe.

• Late payment reminders: Automatically notify clients when payments are overdue.

• Why it’s great: When integrated with Stripe, FreshBooks enables simple invoicing and fast, intuitive payments.

Zoho Invoice

Zoho Invoice is a free tool for small businesses that works great for creating clean, presentable service bills. It includes the following:

• Customizable templates: Easily customize invoices with your branding and service details.

• Time-based billing: Bill clients based on hourly rates.

• Stripe integration: Embed Stripe payment links directly into your invoices.

• Payment tracking: Get real-time updates when clients pay the invoices.

• Why it’s great: Zoho Invoice is free for small businesses and integrates smoothly with Stripe for payments.

Xero

Xero is another powerful accounting software that’s excellent for service-based billing. The software features the following:

• Detailed service invoices: Easily create bills with itemized services and descriptions.

• Stripe integration: Connect with Stripe to create payment links for your clients.

• Real-time payment status: Track which invoices have been paid or are overdue.

• Why it’s great: Xero combines invoicing, payments, and accounting into one system with Stripe integration.

Why Stripe stands out

If your main focus is to create service bills and encourage faster payments, Stripe Invoicing is often all you need. While it doesn’t require any third-party tools, you can add more features by integrating with other business solutions.

How can you customize the format of a service bill for different industries?

Customizing a service bill to suit different industries involves making the bill match the kind of work you do. While the basic details stay the same, the way you describe your services and organize the details should fit your specific line of work. Below are examples of how you can adjust the general format for your industry and what to include.

Freelancers and creatives

When clients work with creatives and freelancers, they want to see a clear breakdown of the tasks and time spent. This includes the following:

• Service description: Be specific about each task.

  • Example: “Logo design – 3 concepts, 2 rounds of revisions”
    
  • Example: “Content writing – 4 blog posts, 500 words each”
    

• Hourly vs. flat fees: If you charge hourly, include the number of hours worked and your rate. If you charge a flat fee, note the total for that project.

• Additional expenses: Include any out-of-pocket costs incurred, such as stock photos and software fees.

Example line item

“Website redesign – Research, wireframing, and final design | 25 hours @ $50/hr | $1,250”

Consultants

Consultants often work on a project basis or charge for their time. Their service bills include the following:

• Service description: Split large projects into phases or deliverables so clients understand where their money is going.

  • “Phase 1: Market Research – $1,000”
    
  • “Phase 2: Strategy Session (5 hours) – $500”
    

• Time logs: If you’re charging hourly, include a simple summary of hours worked.

Example line item

• “Business process audit | 10 hours @ $75/hr | $750”
  

Trades and repairs

For hands-on work, such as services performed by electricians, plumbers, and mechanics, clients expect to see both labor and materials clearly listed and itemized. Be sure to include the following:

• Service and parts: Separate the bill into one section for the labor (hours worked) and another for materials or parts purchased and installed.

• Rates: Include your hourly rate for labor.

Example line items

• “Labor – Plumbing repairs | 4 hours @ $60/hr | $240”

• “Materials – Copper piping, connectors | $150”

Healthcare or wellness services

In wellness or coaching services provided by therapists, trainers, coaches, and beyond, sessions or packages are the focus. Here’s what bills include:

• Session details: List the number of sessions and the cost per session.

• Package deals: If you offer bundles or discounts, clearly describe them.

Example line item

• “6 personal training sessions | $50 per session | $300 total”
  

Information technology (IT) and tech services

These services often involve specialized work so providing clear, less technical descriptions helps clients understand their service bills. The bill should include the following:

• Task descriptions: Be specific about what was done (e.g., “software installation,” “bug fixes,” “system improvement”).

• Hourly rates vs. flat fees: Clearly label how you’re charging for each part of the job.

Example line item

• “Server troubleshooting and improvement | 8 hours @ $100/hr | $800”
  

Event planning or catering

With events or planning services, clients want a line-by-line accounting of all elements involved and their costs. Incorporate these in the service bill:

• Service categories: Divide your bill into sections, such as planning, setup, food, decorations, and rentals.

• Per-person costs: If applicable, show charges per attendee.

Example line items

• “Event planning flat fee | $1,500”

• “Catering (50 guests @ $30 per person) | $1,500”