How to use this free invoice template
Fill in the form above and the preview updates as you type. A few fields do more than print a value:
- Invoice date and due date. The due date starts 30 days after the invoice date (Net 30). Change the invoice date and the due date moves with it; set the due date yourself for other terms.
- Amount paid. Enter a deposit or part-payment and the invoice shows the total, the payment and the balance due. Leave it blank when nothing has been paid.
- Discount. Choose a fixed amount or a percentage of the subtotal. Tax is calculated on the subtotal after the discount; shipping and other charges are added after tax and are not taxed.
- Credit lines. A negative unit price (for example a returned item) reduces the subtotal.
- Currency symbol and page size. Any symbol up to four characters, on US Letter or A4.
Download a Word document (.docx) if you want to edit the layout further, or a PDF to email; Print gives the same layout on paper. Not sure what goes where? Fill with an example loads a plumbing invoice you can overwrite.
Everything you type is saved in this browser only, so the next invoice to a repeat client needs just a new number and new line items. Clear form starts over. The files are generated on your device with no account. Downloads carry a faint BizToolDesk mark and a one-line footer credit; your numbers and text are never covered.
What every invoice must include
There is no single US law that dictates the layout of an invoice, but an invoice that is missing any of the following will get paid late, questioned by the client's bookkeeper, or rejected by their accounts-payable system.
| Element | Why it matters |
|---|---|
| The word "Invoice" | Distinguishes it from a quote or receipt; many AP systems key on it |
| Unique invoice number | Lets both sides reference and reconcile the payment |
| Invoice date and due date | Starts the payment clock and defines "late" |
| Your business name, address, email, phone | Identifies the payee; required for the client's records |
| Client's legal name and billing address | The invoice must be addressed to the entity that will pay |
| Itemised description, quantity, unit price, line total | Shows exactly what is being charged for |
| Subtotal, tax, discounts, total due | Makes the arithmetic auditable |
| Payment terms and methods | Tells the client how and when to pay |
| Client PO or reference number (if they gave you one) | Corporate clients often will not pay without it |
If your client is a business, they may also ask for your Taxpayer Identification Number on a Form W-9. Do not print your Social Security number on the invoice itself; provide the W-9 separately.
Invoice numbering schemes
Every invoice needs a number that is never reused. Beyond that, pick the scheme that makes your own bookkeeping easiest:
- Sequential: INV-1001, INV-1002, INV-1003. Simplest, and what most small businesses use. Starting at 1001 rather than 1 avoids advertising that a client is your first customer.
- Date-based: 2026-09-001, 2026-09-002. Resets each month or year, which makes it easy to find invoices from a given period in a folder.
- Client-prefixed: ACME-014, ACME-015. Useful if you send many invoices to a handful of retainer clients.
Whatever you choose, keep a running log of numbers issued (a spreadsheet is fine); this template does not track them for you. Accountants look for gaps because they can indicate missing income.
Payment terms explained
Payment terms tell the client when payment is expected and whether there is any incentive to pay early. Put them in the terms field of the template so they print on every invoice.
- Due on receipt – payment is expected as soon as the client gets the invoice. Common for one-off jobs and for clients who have paid late before.
- Net 15 / Net 30 / Net 60 – full payment is due 15, 30, or 60 days after the invoice date. Net 30 is the default in most US B2B work; large companies often push for Net 60 or longer.
- 2/10 Net 30 – the client may deduct 2% if they pay within 10 days; otherwise the full amount is due in 30 days.
The maths on 2/10 Net 30 is worth understanding before you offer it. On a $5,000 invoice the client saves $100 by paying 20 days early. For the client, that is equivalent to earning about 2% in 20 days, or roughly 37% annualised, so well-run businesses take the discount. For you, it is a 2% cost for cash 20 days sooner: worthwhile if you would otherwise borrow to cover the gap, expensive if you can comfortably wait.
Late fees, and the state-law caveat
You can charge a late fee, but only if the client agreed to it in advance. The place to establish it is your contract or engagement letter; the invoice then repeats it as a reminder. A late fee that appears for the first time on an overdue invoice is very hard to enforce.
Typical practice is 1% to 1.5% per month (12% to 18% per year) on the overdue balance, or a flat fee of $25 to $50 for small invoices. Several states cap the interest rate a business may charge, and some treat late fees on consumer transactions differently from business-to-business ones, so check your state's usury and consumer-protection rules before adopting anything above 1.5% per month. Also state the grace period, if any, so "late" is unambiguous.
Sales tax basics for invoices
Whether you charge sales tax depends on what you sell and where the customer is. In broad terms:
- Tangible goods are taxable in the 45 states (plus DC) that have a sales tax, unless the buyer provides a valid resale or exemption certificate.
- Services are exempt in many states and taxable in others; a handful of states tax most services. Digital products and software vary state by state.
- If you must collect tax, register with your state's department of revenue first, show the tax rate and amount as a separate line on the invoice, and remit it on the schedule the state assigns you.
The template applies one tax rate to the whole subtotal after any discount; it cannot tax some lines and not others. If you sell a mix of taxable and exempt items, either issue separate invoices or note which items are exempt in the description. Shipping is added after tax in this template because many states do not tax separately stated delivery charges, but that too varies. When in doubt, ask an accountant; sales-tax mistakes are expensive to unwind.
Invoice vs. receipt vs. estimate
| Feature | Invoice | Receipt | Estimate |
|---|---|---|---|
| Sent | Before payment | After payment | Before work starts |
| Purpose | Request payment | Prove payment | Approximate cost |
| Binding? | Yes, for agreed work | Confirms a completed transaction | No (unless labelled a fixed quote) |
| Key fields | Due date, terms | Amount paid, payment method | Validity date, exclusions |
Once an estimate or quote is accepted and the work is done, its line items move onto the invoice. If a client pays on the spot, either enter the payment in "Amount paid" so the balance due shows zero, or issue a separate receipt, which also records how they paid.
Tips to get paid faster
Many late payments come from friction rather than bad faith. Remove the friction:
- Invoice immediately. Payment terms run from the invoice date, so an invoice held until month-end pushes the due date back by the same number of days.
- Address it to the right person. Ask who processes payments and put their name in the "Bill to" block. A great invoice sitting in the wrong inbox does not get paid.
- Include the client's PO or reference number. For larger companies this is the single most common reason invoices are bounced.
- Offer at least two payment methods and state them in the terms: bank transfer (ACH) details, a card-payment link, or a check address.
- Keep descriptions specific. "Consulting" invites questions; "Website redesign, phase 2: checkout flow (per proposal of 12 Aug)" does not.
- Set shorter terms than you think you need. Many clients pay on the due date, whatever it is.
- Follow up on the due date, politely and by phone if possible. A one-line reminder on day 31 is easier for everyone than a firm letter on day 60.
When to move to invoicing software
A template like this one is ideal when you send a handful of invoices a month and track them in a spreadsheet. It has limits worth knowing: it does not number invoices for you or keep a list of past ones (each saved draft is the last invoice you worked on), it has no logo upload or online payment link, and it does not record whether an invoice was paid. Consider dedicated software when:
- You send more than 10 to 15 invoices a month and manually chasing them is eating hours.
- You bill recurring retainers or subscriptions and want invoices sent automatically.
- You want clients to pay by card or ACH straight from the invoice.
- You need to reconcile payments with your accounting system rather than re-typing them.
Our review of free invoicing software compares the options on fees, payment processing, and how painful it is to export your data if you outgrow them.
Worked example
A designer completes a branding project for Acme Co. and issues invoice INV-1042 dated September 24, 2026 with Net 30 terms, so the due date is October 24, 2026.
| Description | Qty | Unit price | Amount |
|---|---|---|---|
| Logo design | 1 | $1,200.00 | $1,200.00 |
| Brand guidelines (per page) | 12 | $85.50 | $1,026.00 |
| Stock photography licence | 3 | $49.99 | $149.97 |
The subtotal is $2,375.97. A $100 goodwill discount brings the taxable amount to $2,275.97. Assuming the work is taxable where the client is, sales tax at 8.25% adds $187.77 ($2,275.97 × 0.0825 = $187.7675, rounded to the cent), for a total of $2,463.74. The client paid a $500 deposit at kick-off, so the invoice shows the total, the $500 payment, and a balance due of $1,963.74. Enter those figures in the template (discount as a fixed amount of 100, tax rate 8.25, amount paid 500) and the preview shows exactly that breakdown.