Invoice like a pro

Invoice Like a Pro: The Ultimate Invoicing 101 Guide

As a freelancer or consultant, invoicing is essential for running a successful business. Invoices not only help you get paid for your work but also help you to maintain professionalism and build trust with your clients. In this article, we’ll provide you with a comprehensive guide to invoicing 101, cover the basics of invoicing, as well as go over how to create and send an invoice. In addition, we’ll go over some best practices when sending invoices to make the invoicing process easier and more effective. Let’s dive right in. 

Table of contents:

    1. The Basics of Invoicing
    2. Creating Invoices
    3. Sending Invoices
    4. Advanced Invoicing
    5. Conclusion

Invoicing 101: The Basics of Invoicing

1. What is an Invoice?

An invoice is a formal document that freelancers and consultants send to their clients to request payment for the goods or services provided. It serves as a record of the transaction and outlines the details of the work performed, the amount owed, and the payment terms.

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2. Types of Invoices

There are different types of invoices that freelancers and consultants can use depending on the nature of their work and the agreement with their clients. Some common types include:

  • Standard Invoice: This is the most commonly used type of invoice, providing a straightforward summary of the goods or services rendered, along with the corresponding costs.
  • Progress Invoice: This type of invoice is used for longer projects or contracts. Progress invoices allow freelancers and consultants to bill clients for completed milestones or stages of the work. This helps maintain a steady cash flow throughout the project duration.
  • Recurring Invoice: This type of invoice is used for ongoing services. recurring invoices automate the invoicing process by generating invoices at set intervals, such as monthly or quarterly. This is commonly utilized for subscription-based services or retainer agreements.

If you want to learn more about the different types of invoices, check out our comprehensive article on the different types of invoices here.

3. Essential Elements of an Invoice

To ensure clarity and prompt payment, an invoice should include essential elements such as:

  • Header: This section typically includes your business name, contact information, logo, along with the client’s details, which typically include their name and address.
  • Invoice Number: Assigning a unique identifier to each invoice helps with organization and makes it easier to track payments.
  • Itemized Description: Provides a detailed breakdown of the goods or services provided, including quantity, hourly rate, or unit price.
  • Total Amount Due: Clearly states the amount owed for the work performed or goods delivered.
  • Payment Terms: Specifies the payment due date, acceptable payment methods, and any late payment penalties or discounts offered.
  • Additional Information: Includes any other pertinent details, such as project PO numbers or references to previous communications, to facilitate easy identification and processing of the invoice.

By understanding the basics of invoicing, including the different types and essential elements, you can create clear and professional invoices that help ensure timely payment and maintain healthy client relationships. If you want to learn more about how to create a professional invoice, refer to this article here. 

Now that you understand the basics of invoices. Let’s get to the next steps of creating an invoice. You can use invoice templates and invoicing software to create invoices. Let’s look at each of them in detail. 

Invoicing 101: Creating Invoices

1. Invoice Templates:

One of the first steps in creating an invoice is choosing the right template. An invoice template that contains all the necessary sections and information for an invoice. Using a template saves you time and ensures consistency across your invoices. Here are some benefits of using invoice templates:

  • Professional Appearance: A well-designed template gives your invoice a polished and professional look. It includes all the essential elements, such as your business logo, contact information, and client details.
  • Easy Customization: Templates allow you to customize the invoice with your branding elements and adapt it to your specific needs. You can add your own design touches while ensuring the essential information is presented clearly.
  • Time-saving: By using a ready-made template, you don’t have to reinvent the wheel for each invoice. It eliminates the need to create a new layout from scratch, saving you time and effort.
  • Consistency: Using the same template for all your invoices helps with brand consistency and creates a sense of professionalism. Clients will appreciate the familiarity and easily recognize your invoices.

2. Invoicing Software:

Invoicing software simplifies the entire invoicing process by providing specialized tools and features. Here are some advantages of using invoicing software:

  • Automation: Invoicing software automates many time-consuming tasks, such as generating invoices, calculating totals, and even sending reminders for overdue payments. This saves you valuable time that can be better spent on client work.
  • Organization: Invoicing software keeps all your invoice records in one secure location, making it easy to access and manage invoices. You can track payment statuses, generate reports, and have a clear overview of your financials.
  • Payment Integration: Many invoicing software solutions integrate with payment gateways, allowing your clients to make payments directly from the invoice. This simplifies the payment process and reduces the chances of late payments.
  • Client Management: Invoicing software often includes client management features, enabling you to store client details, track their payment history, and maintain a contacts database.

3. Best Practices for Creating Invoices:

Besides using templates and software, it’s essential to follow best practices when creating invoices. Here are some tips to consider:

  • Accuracy: Double-check all the information on your invoice, including the client’s name, billing address, and payment terms. Ensure that the itemized details are accurate.
  • Clear Payment Terms: Clearly communicate your payment terms, including the due date, accepted payment methods, and any late fees or discounts offered. This eliminates confusion and sets clear expectations.
  • Professional Communication: Craft a polite and professional tone in your invoice language. Use appropriate language and consider including a short note expressing gratitude for the opportunity to work with the client.
  • Timely Invoicing: Send invoices promptly after completing the work or at the agreed-upon intervals. Prompt invoicing helps maintain a steady cash flow and reduces delays in receiving payments.
  • Follow-up: If a client hasn’t paid by the due date, follow up with a friendly reminder. Maintaining open communication about payment helps prevent late payments and strengthens your client relationships.

By implementing these best practices, you can create professional invoices that facilitate timely payment and improve your overall invoicing process. In the section below let’s explore how CheckYa can be a valuable tool for creating, sending invoices and receiving payments.

CheckYa is an end-to-end invoicing platform that offers a comprehensive set of tools to help freelancers and small business owners streamline their invoicing process. With CheckYa’s free invoice generator, you can create a professional looking invoice in minutes.. 

CheckYa’s invoicing software simplifies the process of creating and managing invoices. You can create invoices in minutes, save them, or conveniently email them directly to your clients. It also offers features like real-time invoice tracking, automated reminders for overdue payments, and reports to help you monitor outstanding invoices.

When it comes to accepting payments, CheckYa supports a variety of options to cater to your client’s preferences. You can accept payments via Apple Pay, Google Pay, credit/debit card payments, ACH transfer, and PayPal. CheckYa integrates with trusted payment processors like Stripe and PayPal, allowing you to accept payments in over 135 countries and currencies securely.

CheckYa goes beyond just creating and managing invoices. It provides additional benefits like the ability to split or pass transaction fees to your clients and send out automatic payment reminders to reduce late payments. You can sign up and start using Checkya for free with no credit card required. Its user-friendly interface and efficient invoicing features make it easy to create professional invoices, receive payments efficiently, and streamline your invoicing process.

By combining the use of invoicing software like CheckYa, you can create professional invoices, manage your accounts, and receive payments seamlessly. This integrated approach to invoicing helps to streamline your invoicing process, enhance your professional image, and improve your overall client relationships.

Want to learn more about invoice generators, here is a curated list of the top 9 invoice generators. 

Invoicing 101: Sending Invoices

Once you have created your invoices using professional templates/ invoicing software like CheckYa, it’s time to send them to your clients. Sending invoices effectively involves considering the right payment method, setting clear payment terms and conditions, and following up on overdue invoices. Let’s look into each of these aspects:

1. Choosing the Right Payment Method:

When sending invoices, it’s important to consider your clients’ preferred payment method. Offering multiple payment options increases the chances of receiving timely payments. Some common payment methods include:

  • Bank Transfers: Provide your bank account details so that clients can make direct transfers. Include all necessary information, such as account number, routing number, and any additional details required for international transfers.
  • Credit/Debit Cards: Accepting card payments offers convenience to your clients. Integrate a secure payment gateway into your invoicing system to enable easy credit or debit card transactions.
  • Digital Wallets: Popular digital wallets like PayPal, Venmo, or Apple Pay are often preferred by clients due to their ease of use and security. Consider integrating these options into your invoicing process.

By offering a variety of payment methods, you cater to your clients’ preferences and increase the likelihood of timely payments.

2. Payment Terms and Conditions:

Including clear payment terms and conditions on your invoices ensures that both you and your clients are on the same page when it comes to payment expectations. Here are some important considerations:

  • Due Date: Clearly state the payment due date on the invoice. Specify the date by which the payment should be made.
  • Payment Methods: Outline the payment methods you accept and provide specific instructions, such as bank transfer details or links to payment gateways.
  • Late Fees or Discounts: If applicable, communicate any late fees for overdue payments or offer early payment discounts. Ensure that these terms are clearly stated on your invoice to avoid confusion.
  • Payment Currency: If you work with international clients, specify the currency you prefer to receive payments in to avoid exchange rate issues.

By setting clear payment terms and conditions, you minimize misunderstandings and increase the likelihood of timely payments.

3. Following up on Overdue Invoices:

Sometimes, clients may miss the payment deadline, and it becomes necessary to follow up on overdue invoices. Here are some tips for effective follow-up:

  • Friendly Reminders: Send polite and professional reminders to clients who haven’t made the payment by the due date. Use a friendly tone and emphasize the importance of timely payment.
  • Frequency: Determine an appropriate frequency for sending reminders. Sending one or two reminders a few days apart is often effective without being overly intrusive.
  • Alternative Communication: If the client is unresponsive to email reminders, consider reaching out through other communication channels such as phone or messenger apps.
  • Late Payment Policy: If the payment remains overdue, communicate your late payment policy clearly. This may involve charging late fees, pausing work until payment, or seeking legal action as a last resort.

In conclusion, sending invoices effectively involves choosing the right payment methods, setting clear payment terms and conditions, and following up on overdue invoices. By offering multiple payment options, clearly communicating payment expectations, and proactively following up on overdue payments, you decrease the likelihood of payment disputes and ensure that your business maintains a healthy cash flow.. Remember, effective communication and professionalism are key to building and nurturing strong client relationships.

Tools like CheckYa can come in handy here. CheckYa offers more payment options, real-time invoice tracking and automated reminders. 

  • Multiple Payment Options: CheckYa accepts multiple payment options, including credit/debit cards, ACH debit, and even cryptocurrencies. With over 135 currencies supported and the ability to bill and receive payments in international currencies, CheckYa caters to a wide range of clients.
  • Real-Time Invoice Tracking: Users can monitor their invoices’ status from CheckYa’s straightforward dashboard, allowing them to manage invoices and view detailed reports directly from one place. By keeping track of invoice status in real-time, users can reduce time spent on tracking and collecting invoice payments.
  • Automated Payment Reminders: CheckYa offers a useful feature that reduces late payments by sending reminders to clients when invoices are past due. This process is automatic, saving users time on manual reminders or awkward follow-ups.
  • Savings on Payment Processing Fees: When using CheckYa, you can save 50-100% of payment processing fees by asking clients to cover half or all of the transaction fee.

Overall, CheckYa offers a streamlined end-to-end invoicing platform to create, send, and receive payments for your business. By enhancing clients’ payment experience and simplifying invoicing processes, CheckYa helps you build strong client relationships while saving time. 

Now that we have a clear understanding of creating and sending basic invoices, let’s look at more advanced invoicing features. 

Invoicing 101: Advanced Invoicing:

In addition to regular invoicing, there are advanced techniques that can make invoicing even more effective. Let’s explore three of these techniques: Retainer Invoicing, Recurring Invoicing, and Late Fees and Penalty Invoicing.

1. Retainer Invoicing

Retainer invoicing is useful if you provide ongoing services.  It involves getting a fixed payment from your clients in advance for a specific period. Here’s why it’s helpful:

  • Predictable Cash Flow: It ensures a steady income, making it easier to plan your finances.
  • Client Commitment: By asking for an upfront payment, you confirm your clients are serious about working with you.
  • Resource Management: With retainer invoicing, you can allocate resources efficiently and schedule tasks effectively.

To use retainer invoicing, clearly state the terms in an agreement, including the scope of work, payment terms, and duration. This technique creates stability and certainty for your business.

2. Recurring Invoicing

Recurring invoicing is great for businesses that provide regular services or products. Instead of creating invoices every billing cycle, you can set up automated invoices at predefined intervals. Here’s why it’s beneficial:

  • Time and Effort Savings: Automating recurring invoices saves you time and effort.
  • Consistent Billing: Recurring invoicing ensures clients are billed accurately and promptly.
  • Improved Customer Experience: Clients appreciate knowing what to expect and being able to plan their finances accordingly.

To set up recurring invoicing, choose an invoicing software with this feature, create recurring invoices for your clients, and define the billing periods and frequency. This technique optimizes your invoicing process and lets you focus on other aspects of your business.

3. Late Fees and Penalty Invoicing

Late fees and penalty invoicing is a way to encourage clients to pay on time by applying additional charges for overdue payments. Here’s why it’s useful:

  • Encourages Timely Payments: Late fees create urgency for clients to settle their invoices promptly.
  • Compensation for Delayed Payments: Late fees compensate for the time and effort spent on managing overdue payments.
  • Reinforces Payment Terms: It reminds clients of payment deadlines and sets clear expectations.

To use late fees and penalty invoicing, clearly explain your late payment policy in your invoices, ensuring clients understand the consequences of late payments.

By using these advanced invoicing techniques, you can streamline your invoicing process, ensure steady cash flow, increase client commitment, and address late payment issues effectively. Experiment with these techniques and see the positive impact on your business.


Invoicing doesn’t have to be complicated. By following the basics, creating invoices, sending them on time, and adhering to best practices, you can maintain a professional image and build trust with your clients. This, in turn, can lead to more business and financial success in the long run. Remember to keep track of your invoices and evaluate your invoicing workflow regularly to ensure it’s efficient and effective. With these tips and tricks, you’ll be on your way to mastering the art of invoicing and taking your freelance or consulting business to new heights.

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Merry Christmas!
20% OFF
Tired of wasting time on invoicing? ⏰
Switch to CheckYa invoicing, automate your billing process, and reclaim valuable hours in your day 💪🔥
Payment processing fees eating into your income?
Switch to CheckYa invoicing, pass on the charges to your clients, & keep more of your earnings.💰🔥
Payment processing fees eating into your income? 😮
Switch to CheckYa invoicing, pass on the charges to your clients, & keep more of your earnings 💰🔥
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