Quick answer
An invoice is a document a seller sends to a customer asking to be paid for goods or services. It lists what was supplied, the price, any tax, the total due, the due date and how to pay. It also gives both sides a record of the sale for their accounts and taxes.
What an invoice includes
Every invoice should have:
- the word “Invoice” and a unique invoice number
- the invoice date and the due date
- your business name, address and contact details, plus your tax number if you are registered for VAT, GST or sales tax
- the customer’s name and address
- a line for each product or service, with quantity, unit price and amount
- subtotal, any discount, tax and the total due
- how to pay: bank details, mobile money or a payment link
Some countries require extra details on a tax invoice. See what is a tax invoice.
Need one now? Open the invoice template. It’s free and makes a PDF in a minute.
Invoice vs quote vs receipt
The three documents follow a sale from start to finish:
- A quote (or estimate) comes before the work: “this is what it will cost”.
- An invoice asks for payment: “this is what you owe, by this date”.
- A receipt confirms payment was made: “we received this amount, thank you”.
For a longer comparison, read invoice vs receipt.
Who sends invoices?
Anyone who sells to another business, or to a customer who pays later: freelancers, contractors, consultants, shops selling on account, and companies of every size. A shop where you pay at the till usually gives a receipt instead, because payment has already happened.
You don’t need accounting software to send one. Fill in a free invoice generator, download it as a PDF and email it to your customer.
Create your invoice in under a minute, free. Fill in the form, watch the preview and download a PDF. No sign-up, and your data stays on your device.
Invoice templateFrequently asked questions
Is an invoice the same as a bill?
Mostly, yes. The seller calls it an invoice; the customer receiving it often calls it a bill. It is the same document.
Is an invoice a legal document?
An invoice is a record of a sale and a request for payment. It is commonly used as evidence of what was agreed and owed, and tax authorities rely on it, but the contract is the agreement between you and the customer.
When should I send an invoice?
As soon as the work is done or the goods are delivered, or at the agreed time, such as the end of each month. The sooner you send it, the sooner you are paid.
Related tools & articles
More from the blog
- Can I send an invoice without a registered business?Yes, freelancers can send invoices without registering a company. What to put instead of a business name, and when tax registration matters.
- How to invoice international clientsHow to invoice clients in another country: which currency to use, tax on exported services, payment options, and what to include on the invoice.
- How to send an invoice by emailHow to email an invoice so it gets paid: subject line, what to write, attaching the PDF, and copy-paste email templates for new and repeat clients.
- Invoice template for Word or Excel: is there a better way?Making invoices in Word or Excel works, but it is slow and error-prone. How to do it, the common mistakes, and a free online alternative that makes a PDF.