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Work as a contractor can vary, from one-off jobs to monthly retainers, from progress payments to multiple services. There’s a lot you need to consider, but with the right invoicing systems in place, keeping track can be a lot easier for you and your clients. By maintaining a clear invoicing process, you’ll streamline the way your finances are managed. If you’re not sure how to write a contractor invoice for contract work, this step-by-step guide is just what you need to get started.
Step One: Custom-Designed Invoices
It doesn’t matter what material you’re sending out; you want to make sure it’s consistent with your brand. Custom designing your invoices will not only improve your company’s image, it will also ensure your invoices stand out, which means you’ll be remembered. Being remembered is a key component of customer retention, and it plays a notable role in your payment reliability and brand positioning.
It’s important to remember to keep it simple when custom designing your contractor invoices so your clients will be able to find important information easily. Features you might consider with custom designs include:
- Logos
- Paper color
- Font style
- Advertisements
Step Two: What To Include in Your Contractor Invoice
Once you have a custom design in mind, it’s time to get all the right information in your invoice. You should always include the following:
- The word INVOICE or TAX INVOICE (depending on the requirements of your clients) on the page, in a large font size.
- Your business details, including your business name, address (with ZIP code), email, and phone number.
- Your business logo for easy identification.
- Client’s contact details. Contact name and position, company name, email and phone are all relevant.
- Invoice number. How you decide this is up to you. Invoicing systems generate automatic numbers, or you could choose your own based on client names or dates.
- Payment terms and method of payment. State the terms of payment clearly (e.g., within 7 days), include bank details or other applicable information, and mention whether there are any fees for late payments.
- Invoice date. Be sure to include the date you sent the invoice to the client so they can make a note to pay on time.
- Details of the service or products. This should be itemized and will include the hours worked or the rate per item.
- Total amount due. Although it’s best practice to itemize your work, make sure you include the total amount, including any applicable taxes.
Invoicing in the construction industry can be especially tricky because of complex projects, changing project costs, and coordinating with multiple subcontractors. In other words, the details are crucial. In addition to the hours worked, be sure to include as much detail as possible of the services performed to eliminate confusion. Not only will this drive business efficiency, but it will also facilitate a stronger client-contractor relationship.
Step Three: Write an Invoice Email
Once you have your invoices set up and ready to send, you’re going to want to know how to write an invoice email. A great idea is to create a contractor invoice email template. This will save you from having to type the same message every time you send an invoice to a client. A template saves both brainpower and time, making life in your busy business much easier. If you send invoices to several clients for similar work, a template will also help to ensure your emails and branding are consistent.
When writing your invoice email:
Make It Personalized:
You want the email to reflect your business and the relationship you have with your client. You might want to use their first name in the opening address, include casual connotations (i.e., “How are you?”) if you have a close working relationship. Or you can keep it simple and professional, without any jargon.
Keep It Straightforward:
Keep the email simple, unless you have been requested to do otherwise. Your email doesn’t need to include highly detailed specifics of the job – your contractor invoice has that information. It just needs to be accurate. Include whether the invoice is an hourly rate or set project, and mention any extra costs, such as shipping.
Ensure the Subject Stands Out:
This is important if you’re emailing a large corporation. You want to make sure your email stands out from others. Some accounting departments receive hundreds of emails a day, and it may be easy for yours to go unnoticed. The best idea is to use the number of the invoice, the product or service you provided, and the deadline date. For example Invoice #102 for Roof Installation. Deadline March 24, 2025. Avoid using exclamation marks and full capitals, as these can be mistaken for spam. And don’t forget, before you hit send make sure you’ve attached your invoice.
Step Four: Create a Contractor Invoice Email Template
Setting up a template is simple, but if you’re not sure where to start, here is a basic example to help get you started:
Subject: Invoice [Number] for [Job]. Deadline [Date]
Dear [Client],
I hope you are well. Please see attached my invoice [number] for [completed project]. Payment is due by [date].
If you would like further information or clarification on any aspects of the invoice, please don’t hesitate to contact me.
Best regards,
[Your name and email signature]
Step Five: Streamline Billing With Professional Invoicing Software
For independent contractors seeking efficiency, invoicing software can be a wise investment. Invoicing software helps facilitate the entire invoicing process, from estimates to payments, helping contractors stay organized and streamline client communications. Square Invoices can help contractors bill like a pro with custom layouts and templates, custom fields, milestone-based payments, and more. Square Invoices can also integrate with a host of third party partners, like QuickBooks Online, to make accounting tasks and cash flow management straightforward from beginning to end.
Contractor Invoicing Mistakes To Avoid
Everyone makes mistakes, but when your financial livelihood depends on it, you want the details to be as accurate as possible. The following are common errors that can have a detrimental impact when learning how to invoice as an independent contractor.
Incorrect Details:
Make sure your invoice includes all of the essentials listed in step two. You might also check with the client to see whether they require anything special to be included, such as an order number or further itemization.
Unclear Terms:
Unclear payment terms can have a significant impact on projects and erode customer trust. Everything from acceptable payment methods, payment timeline, and late fees should all be communicated clearly. If you want your clients to pay within seven days, you need to make sure you state this on your invoice. If there are consequences for late payment, such as a 5% increase per week, this needs to be made abundantly clear as well.
The Wrong Recipient:
When sending an invoice, make sure you’re sending it to the right department or person. Don’t rely on Google to tell you who manages the accounts. If you aren’t sure where it should go, give the client a call and ask. Otherwise, they may not see the invoice at all.
Poor Spelling or Formatting:
It’s crucial that your invoices look professional as possible. There should be no spelling mistakes or grammatical errors, and the layout should be easy to read. Consider using a templated invoicing system to help establish a smoother drafting process.
If you want to avoid these common invoice mistakes, you need to prepare ahead of time. If you’d like further information about invoicing clients, check out our tips to manage your invoices and take a look at our advice for how you can get paid fast.
