How To Send an Invoice: 7 Steps for Invoicing a Client

The concept of asking for payment isn’t new—but the modern invoice has surprisingly ancient roots. From cuneiform records in Mesopotamia to clay tablets in Athens, people have been sending requests for money for at least as long as written language has existed. 

As for an invoice that looks pretty similar to one we might send today, Dutch painter Hieronymus Bosch billed King Philip the Handsome for his work The Last Judgment all the way back in the 1500s. It wasn’t exactly a polished PDF—just a hand-scrawled note with rough calculations in the margins—but it did the trick: Bosch walked away with 36 pounds and a footnote in financial history.

Today, sending an invoice is a bit more precise and high-tech. Customers want a professional invoice that lists all the necessary information they need to pay you. Whether you’re a freelancer billing clients or a small business looking to get paid for your last shipment, take a look at how to send an invoice and collect prompt payments for your work.

How to send an invoice in 7 steps

1. Determine payment terms and schedule
2. Choose the right invoicing tools
3. Set up an invoice template
4. Set up payment accounts
5. Draft your email or upload your invoice
6. Send and track receipt
7. Follow up with payment reminders

At its core, sending an invoice sounds simple. You send the bill, and then your clients pay it. But there are a few more steps in the invoicing process if you want to come across as a professional and manage your small business’s bookkeeping well. Use the following steps to send an invoice that will inspire your clients to make timely payments.

1. Determine payment terms and schedule

Before doing any work or selling any products to a client, the first thing you need to do is define your payment agreement. Ideally, both parties sign a contract outlining payment terms to get on the same page. This should include how much they pay you, how often they pay you, and the manner in which they pay you.

For freelancers, some clients may be willing to pay part of the amount owed before you render the services. The second part of the payment would then be due after work is completed. You might also consider installment payments based on certain milestones. Other clients will only contract to pay you after you complete all services.

Other common payment terms include:

• Net 30: Payment due 30 days after you send an invoice

• Net 60: Payment due 60 days after you send an invoice

• Immediate: Payment due on the invoice date

Unfortunately, most freelancers don’t have the bargaining power to set their own payment terms. They often have to roll with whatever guidelines clients provide. The same goes for when it’s time to send a bill; clients often set the rules for when they’ll accept and approve invoices.

However, for small-business invoices, you have more control. A lot of people go with a monthly, bimonthly, or quarterly cycle. Others may deliver directly at point of sale or take a project-based approach. Regardless, nail down the exact payment schedule in your initial contract. Let your clients know what your preferred method is, whether it’s credit card, check, or cash. Knowing how they plan to pay can help you prepare your payment accounts and plan for any processing fees. 

2. Choose the right invoicing tools

After nailing down a payment agreement, decide what tools you want to use for invoicing. Your client may already have something set up for you, but there are many small-business accounting tools that can help you if not.

For example, Shopify’s online invoice generator creates professional invoices in just a few simple steps. All you need to do is enter your company’s information, your customer’s information, and the items you wish to bill. The tool generates an invoice you can send with ease after the fact.

While this works great for one-off billing, you might want a more dedicated invoice app if you’ll be dealing with clients regularly. Top invoicing tools let you:

• Schedule recurring invoices

• Send automated payment reminders

• Sync with your accounting software to keep your finances up to date

3. Set up an invoice template

When it’s time to craft a sales invoice, there’s certain information you need to include. If you’re using an invoicing tool, choose a professional invoice template with all the fields you need. But if you’re creating a custom invoice template, make sure you include these invoice details:

• Your business’s information, including name, phone number, business address, and email address

• Your customer’s information, including client name, phone number, business address, and email address

• Invoice date

• A unique invoice number

• An itemized list of services rendered or products delivered, clearly outlining the cost of each as well as the total amount due

• Any discounts or taxes that apply

• A summary of the payment terms as well as links to payment portals if applicable

• The due date for the payment

• Any special notes

Working from a template ensures you follow a standarized formula and don’t have to start from scratch.

4. Set up payment accounts

How you accept payments is up to you, but many small businesses accept electronic payments like credit cards, debit cards, Apple Pay, and ACH bank transfers. In fact, research from Ardent Partners shows that 68% of accounts payable departments currently use e-payments for payment collection.

If you want to go this route and accept online payments, you’ll need a payment gateway to collect the customer’s payment details as well as a payment processor to manage the transaction for you. Finally, you’ll need a merchant account to accept the funds from the customer’s bank.

Luckily, many companies offer an all-in-one payment processing service so you don’t have to worry about finding each of these elements. Also, if you use invoicing software like QuickBooks or FreshBooks, it may come with built-in payment options to simplify your experience. You can also accept payments via your PayPal account or another other payment service.

5. Draft your email or upload your invoice

With your invoice drafted and your payment processing set up, it’s time to decide if you want to send invoices via email or an invoicing platform. Both work well to send invoices, but many prefer invoicing platforms because they manage the sending process for you. You just enter the invoice details, choose a client, and the system takes over from there.

If you’re writing an email, all you have to do is attach a PDF of your invoice to the message. Then, write a short note explaining what the invoice is for. Be courteous but succinct—after all, the important details your client needs are already in the invoice.

It’s rare, but some people still send invoices via mail. If you’re sending a paper invoice, make sure you don’t need to pay additional postage. 

6. Send and track receipt

The easiest step in the invoicing process is hitting the Send button. 

If you’re using invoicing software, many include the option to track when the client opens your payment request. That way, you know that your customers got your invoice and it didn’t end up in their spam folder. They can also show payment status so you know as soon as you get paid.

If you send invoices via snail mail, consider paying extra for delivery confirmation. This helps you know that the invoice wasn’t lost in the mail.

7. Follow up with payment reminders

Even though your invoice is in your customer’s hands, you’re not done yet. Unless you’re lucky and have a client who pays immediately, you may want to send follow-up reminders. This keeps your unpaid invoice top of mind so you get paid faster.

How often to send unpaid invoice reminders depends on when the payment is due and your relationship with the client. You don’t want to micromanage the payment process, especially with clients who have previously paid on time. Many freelancers and small businesses may not feel the need to send reminders until after the payment is late.

However, if you’re working with a new client who’s never paid you before, consider sending one reminder email a few days before the payment is due, especially if you don’t hear back that they’ve received your invoice.

If you still haven’t received payment and the due date arrives, consider sending one reminder email a week. At this point, you may also want to charge additional fees depending on your established policies. Don’t be afraid to stand up for yourself if the time comes.