The self-employed life has a lot going for it. For one thing, there's never a shortage of things to do.

One thing to keep in mind? Those little administrative tasks like invoicing and bookkeeping might seem like number 67 on your priority list, but they're actually the fuel that keeps the whole engine running. After all, you're doing this to earn an income, right?

Make your life easier by using our free downloadable freelance and self-employed invoice template so you can track your work and streamline your billing process. Read on to learn how to write an invoice for freelance work, including what should be on a professional invoice, and how and when to send it off to clients to get paid quicker. 

Download and customize your freelance and self-employed invoice template now.

What should you include on a self-employed invoice?

Regardless of whether you create your invoice for freelance or self-employed work in Microsoft Word, Excel, or as a PDF, there are some standard items to include on every invoice you send. The exact details vary depending on the type of work you do, but there are three main line items to consider: consultation, expenses, and the finished project, plus sales tax if you charge it. The Canada Revenue Agency has details on when and how to charge GST/HST to your clients. 

Invoicing tools make it easier for you to create invoices and customize them per client account. Since you run your own business, the responsibility falls to you to create a self-employed invoice that covers all needed information.

This includes:

• Your business name
• Your contact details
• The client’s information
• A unique invoice number
• The payment due date and payment terms
• Anything else the client requires, like a purchase order (PO) number

On top of this, consider including the following, depending on the kind of work you do.

Consultation 

If a client hires you to provide advice or instruct them on how to complete a specific project, it’s considered consultation work. For example, if you're a freelance copywriter, you might complete a website audit for a client to provide detailed advice about any changes they should consider making to their website.

When billing for consultation services, write a detailed description of the consultation services rendered, the hourly or flat rate, and the total cost.

Project-related expenses 

Depending on the type of work you do, you may have project-related expenses. The costs of materials, software, and tools needed to complete a project are all considered expenses, and they are often passed along to the client. This is a good thing to verify at the beginning of the project so there are no surprises.

For example, you might include estimated expenses in your project quote. For that reason, you can create a materials or supplies section in your invoices to make a detailed account of what was used during the project.

If you’re a freelance wedding photographer who's sold a package that includes printed photos and a printed album, then the photo paper, the album, and the cost of printing the images are project-related expenses that can be billed to your client.

Because clients typically like to know exactly what they’re paying for, it's important to create an itemized list of all materials used. You should enter each expense as a separate line item on the freelance invoice template and include any details about the items, such as a description and price per unit. Also, keep your receipts on hand in case the client asks to see them.

Finished project

It's common to invoice clients on a per-project basis. When billing a client in this way, you should send an invoice for the total cost of the project. In some cases, you may also want to create separate line items for different parts of the project so the client can see the costs broken down.

Therefore, include the services rendered, and the total cost of those services in the invoicing process. 

Imagine you're a freelance web designer billing a client $5,000. The total might include website setup, landing page design, and uploading product photos and descriptions to an e-commerce system. If so, list each item as a line item, with individual costs that total $5,000.

Invoice payment terms 

The right words go a long way. When you're creating your invoice templates for freelance work, there are vital invoice payment terms that you should include to establish how and when you will get paid. Using the correct terminology can help you financially protect your business and ensure both parties understand the expectations, including penalties and late fees for missed or late payments. 

Professional invoices should always include these terms, which cover everything needed during the payment process. This includes the total amount the client pays, the payment due date, payment options, and the preferred payment method of your business.

Clearly stating such terms, and identifying that late payments will incur a late fee, will help you get paid quickly and settle outstanding client bills.

When should you send a freelance invoice?

It’s common to collect a deposit upfront and send an invoice for the remaining cost of the project once the work is complete. But you can also require payment in full upfront or accept monthly payments.

When you manage multiple freelance clients, it’s a good idea to set payment terms in advance and use those terms for all your clients. Set up your freelance or self-employed invoice template so your invoices are always written the same way, in the same place on the document.

Ensure your clients understand your payment terms upfront by including them in your freelance proposal.

To make things even easier, consider automating your billing process by using QuickBooks Online invoicing solutions. With invoicing tools, your company can track client accounts, send multiple invoices, check outstanding invoices, and send reminders to ensure you get paid for your work. Sending invoices is a breeze with electronic invoicing and payment options.

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