What a freelance invoice should cover
Freelance work is usually agreed as a project, a milestone plan or a retainer, and the invoice should mirror that agreement so the client can match it to their purchase order or contract without questions.
- A line per milestone or deliverable, named the way your proposal named it.
- The client's purchase order or project reference, in Notes, if they gave you one.
- Expenses you are allowed to recharge, such as stock images or travel, as separate lines.
- Your payment terms and the bank or payment details, so nothing delays payment.
Invoicing deposits and milestones
A common arrangement is a deposit on signing, then payments at agreed milestones. BillCrisp handles this with the Amount paid field: enter what the client has already paid against this invoice and the document shows the balance due. In the example, 600.00 of the 1,800.00 deposit is credited against the second milestone, one third of the deposit per milestone.
| Invoice | Lines | Amount paid | Balance due |
|---|---|---|---|
| On signing | Deposit, 30% of the fee: 1,800.00 | 0.00 | 1,800.00 |
| Concepts approved | Milestone 1 of 3: 1,800.00 | 600.00 credited from the deposit | 1,200.00 |
| Design approved | Milestone 2 of 3: 2,250.00 | 600.00 credited from the deposit | 1,650.00 |
| Final delivery | Milestone 3 of 3: 1,950.00 | 600.00 credited from the deposit | 1,350.00 |
Whatever split you use, write it into the proposal first. An invoice that introduces a new payment schedule is a common source of disputes.
Late payment and kill fees
Late fees and cancellation (kill) fees are only enforceable as your contract and local law allow, so quote the clause rather than inventing a penalty on the invoice. In the UK, businesses can claim statutory interest on late business-to-business payments; see invoice payment terms for the details and common terms such as Net 14 and Net 30.
Freelancers paid by the hour
If you bill time rather than deliverables, the hourly invoice page explains how to turn minutes into decimal hours and how to list several rates on one invoice.
Taxes for freelancers
Charge VAT or GST only if you are registered for it. If you are, choose your country in Region so the right tax label, tax number field and rate are used; country pages such as the UK VAT invoice and Australian tax invoice list the details those tax offices require. If you are not registered, leave tax at 0%.