How to Invoice as a Freelancer
You finished the work. Now you need to get paid. That means sending an invoice, and if you have never done it before, the process can feel uncertain. What do you include? When do you send it? What if the client does not pay?
This guide walks through every step. By the end, you will know how to create a clear invoice, send it to your client, and follow up when payment is late.
Step 1: Set up your business details
Before you create your first invoice, gather these details:
- Your legal business name (or your full name if you operate as a sole proprietor)
- Your address
- Your email and phone number
- Your payment instructions (bank transfer, check, or online payment link)
This information goes at the top of every invoice you send. It tells the client exactly who is billing them and how to pay. In SettleDue, you enter these details once in your account settings and they appear on every invoice automatically.
Step 2: Add your client
Each invoice goes to a specific client. You need their name (or company name), their contact email, and their billing address. Keep a record of every client you work with so your invoices stay consistent.
If you invoice the same client every month, you only set them up once. Every future invoice pulls their details automatically.
Step 3: List your line items
This is the core of the invoice. Each line item answers the question: what did you do, and what does it cost?
A typical line item includes:
- Description - What you did. Example: "Website redesign - homepage and about page"
- Quantity - How many hours, units, or deliverables
- Rate - Your price per unit. Example: $85/hour
- Amount - Quantity multiplied by rate
Here is a real example. Say you are a freelance designer and you spent 12 hours on a logo project at $95 per hour:
- Logo design - concept development: 4 hours at $95 = $380
- Logo design - revisions and final files: 5 hours at $95 = $475
- Brand guidelines document: 3 hours at $95 = $285
- Total: $1,140
Break the work into clear categories. Your client should be able to read the invoice and understand exactly what they are paying for.
Step 4: Track your hours first
If you bill by the hour, track your time as you work. Do not wait until the end of the project to guess how long everything took. A few days of untracked time can cost you hundreds of dollars.
Keep a simple log: date, client, task, and hours. At the end of the billing period, pull those entries into your invoice. In SettleDue, you log time entries against each client and then generate an invoice from those entries directly. No spreadsheet required.
Example: you consult for two clients in one week. Client A gets 14 hours, Client B gets 8 hours. At your rate of $120/hour, that is $1,680 for Client A and $960 for Client B. Each client gets a separate invoice with their own line items.
Step 5: Set your payment terms
Payment terms tell the client when the invoice is due. Common options:
- Due on receipt - Payment expected immediately
- Net 15 - Due within 15 days
- Net 30 - Due within 30 days
If you are new to freelancing, start with Net 15. Net 30 is standard for larger companies, but it means you wait a full month for your money. If cash flow matters (and it usually does), shorter terms help.
Write the terms clearly on every invoice. Include the invoice date and the due date. A line that says "Due: September 5, 2026" is more effective than "Net 15" because the client sees the exact deadline.
Step 6: Ask for a deposit on large jobs
If a project is worth $1,000 or more, ask for a 50% deposit before you start. This is standard practice and protects both sides. The client shows commitment. You cover your time if the project falls apart halfway through.
Here is how it works. Say you quote a $3,000 website project. Send an invoice for $1,500 labeled "50% deposit - website project" before you begin. When the work is complete, send a second invoice for the remaining $1,500.
Some freelancers use a different split: 50% up front, 25% at the midpoint, 25% on delivery. Pick what works for the project size. The point is to avoid doing thousands of dollars of work before you see a cent.
If a client pushes back on a deposit, that is useful information. Established businesses expect deposits. A client who refuses to pay anything up front is a client who might not pay at all.
Step 7: Number your invoices
Every invoice needs a unique number. This is how you and your client reference it later. A simple numbering system works: INV-001, INV-002, INV-003, and so on.
Do not skip numbers or reuse them. Sequential numbering gives you a clean paper trail at tax time. When your accountant asks for invoice #47, you can find it immediately.
Step 8: Send the invoice
Email a PDF of the invoice to your client. A PDF is the standard format because it looks the same on every device and cannot be accidentally edited.
Include a short note in the email body: "Hi [Name], attached is my invoice for [project/period]. The total is $X and payment is due by [date]. Let me know if you have any questions."
Send the invoice as soon as the work is done (or at the end of each billing period if you bill monthly). Waiting adds days to your payment timeline. If you finish on a Friday, send the invoice on Friday, not the following Monday.
Step 9: Track payments (including partial ones)
When a payment arrives, record it against the invoice. This tells you the invoice is settled and keeps your records accurate for tax season.
Not every payment covers the full amount. If you asked for a 50% deposit, the client pays half now and half later. If a client sends $800 on a $1,200 invoice, you need to know that $400 is still outstanding.
In SettleDue, you can record partial payments on any invoice. Log the $800 payment, and the invoice shows a remaining balance of $400. When the second payment arrives, record that too and the invoice marks itself as paid. You always know exactly how much each client owes.
At any point, you should be able to answer: how much do my clients owe me right now? If you have to dig through emails and bank statements to figure that out, your system needs work.
Step 10: Follow up on late payments
Some clients pay late. It happens. Here is a straightforward follow-up schedule:
- 1 day past due - Send a short reminder: "Just a quick note that invoice #X was due yesterday. Let me know if you need anything from me to process payment."
- 7 days past due - Follow up again: "Following up on invoice #X, now 7 days past due. The total is $Y. Please let me know when I can expect payment."
- 14+ days past due - Call or send a firmer email. At this point, consider pausing new work for the client until the balance is cleared.
Most late payments are not intentional. A reminder is usually enough. But you have to send it. Invoices do not chase themselves.
Common invoicing mistakes to avoid
- Vague descriptions - "Consulting services" does not help your client approve the payment internally. Be specific.
- Missing payment instructions - Tell the client exactly how to pay you. Include bank details or a payment link on the invoice itself.
- Delayed sending - Every day you wait to send the invoice is a day you add to your payment timeline.
- No records - Keep a copy of every invoice. You need them for taxes and for resolving disputes.
Start sending invoices today
Invoicing does not have to be complicated. Set up your details, track your time, and send a clear PDF to your client. Do it consistently and you will get paid consistently.
SettleDue handles the entire workflow: time tracking, invoice generation, PDF delivery, and payment tracking. It starts at $12 per month, and every plan includes unlimited invoices.
No credit card required. Cancel anytime.