You finished the job. Now you need to get paid. But what goes on the invoice? How do you make it professional? When do you send it?

Here's the complete guide to invoicing as a contractor.

What Every Contractor Invoice Must Include

1. Your Business Information

Your business name
Your address
Your phone number
Your email
Your license number (if required in your state)

2. Customer Information

Customer name (or business name)
Customer address
Job site address (if different)

3. Invoice Details

Invoice number (e.g., INV-001, INV-002 — use sequential numbers)
Invoice date (date you're sending it)
Due date (e.g., "Net 30" = due in 30 days, "Due upon receipt" = pay now)

4. Work Description & Line Items

This is the most important part. Be specific:

Description of work: "Panel upgrade - replaced 100A panel with 200A panel, added 4 circuits"
Materials: List major materials if charging separately
Labor hours: "8 hours @ $85/hr = $680"
Each line item should show: Description, Quantity, Rate, Total

5. Pricing Breakdown

Subtotal (before tax)
Sales tax (if applicable)
Total Amount Due (big, bold, clear)

6. Payment Terms

When payment is due (Net 30, Net 15, Due on Receipt)
Accepted payment methods (check, ACH, credit card, Zelle, etc.)
Where to send payment (your address or email for digital payment)

7. (Optional But Smart)

Late fee policy ("1.5% per month on overdue balances")
Thank you note ("Thanks for your business!")

Contractor Invoice Template

Here's a simple template you can copy:

[YOUR COMPANY NAME]
[Your Address]
[Your Phone] | [Your Email]
License #: [Your License Number]

INVOICE

Bill To:
[Customer Name]
[Customer Address]
Job Site: [Site Address if different]

Invoice #: INV-001
Invoice Date: March 15, 2024
Due Date: April 14, 2024 (Net 30)

DESCRIPTION                          QTY    RATE      TOTAL
────────────────────────────────────────────────────────
Electrical Panel Upgrade              1    $2,500    $2,500
  - Replaced 100A panel with 200A
  - Added 4 new circuits for future expansion
  - All work to code, inspected & approved

Labor (8 hours)                       8     $85       $680

Materials:
  - 200A Panel                        1     $450      $450
  - Wire & conduit                    1     $200      $200
  - Misc hardware                     1     $70       $70

────────────────────────────────────────────────────────
                              SUBTOTAL:       $3,900
                          Sales Tax (8%):     $312

                         TOTAL AMOUNT DUE:    $4,212
────────────────────────────────────────────────────────

Payment Terms: Net 30
Late fees of 1.5% per month apply to overdue balances.

Payment Methods Accepted:
  - Check: Mail to [Your Address]
  - Zelle: [Your Phone/Email]
  - Credit Card: [Link or call]

Thank you for your business!

When to Send the Invoice

Best practice: Send it immediately after completing the work.

Why?

Details are fresh: You remember exactly what you did, materials used, hours worked
Customer expects it: They just saw you finish — invoice while you're top of mind
Faster payment: Net 30 starts when you send it, not when you remember to send it 2 weeks later
Professional impression: Shows you're organized

The parking lot invoice: Before you leave the job site, pull out your phone, record what you did, and send the invoice. This is the fastest way to get paid.

Common Invoicing Mistakes (And How to Avoid Them)

❌ Mistake 1: Vague descriptions

Bad: "Electrical work - $2,500"
Good: "Panel upgrade: Replaced 100A panel with 200A, added 4 circuits, all to code"

Why it matters: Vague invoices get questioned. Specific invoices get paid.

❌ Mistake 2: Waiting weeks to invoice

Bad: Invoicing 2-3 weeks after job completion
Good: Invoicing same day or next day

Why it matters: Delayed invoices = delayed payment. You're giving them free float time.

❌ Mistake 3: No invoice number

Bad: Every invoice is just "Invoice"
Good: INV-001, INV-002, INV-003 (sequential)

Why it matters: Makes tracking easy for you and the customer. Professional.

❌ Mistake 4: Unclear payment terms

Bad: "Please pay soon"
Good: "Due Date: April 15, 2024 (Net 30)"

Why it matters: Clear due dates prevent "I didn't know when it was due" excuses.

❌ Mistake 5: No follow-up system

Bad: Send invoice, hope they pay, forget about it
Good: Follow up on day 5 ("Did you receive the invoice?"), day 10 ("Just checking in"), day 35 ("Invoice is now overdue")

Why it matters: Invoices that aren't followed up get ignored.

How to Invoice for Change Orders

This is where contractors lose money. Here's the right way:

Get approval BEFORE doing the work (text or email confirmation)
Document what changed: "Customer requested 2 additional outlets in garage (original scope was living room only)"
Send a separate change order invoice OR add it as a line item:

Change Order #1 - Additional Outlets    1    $400    $400
  - Per customer request on March 10
  - Added 2x 20A outlets in garage
  - Approved via text (see attached)

Always reference the approval ("per text on March 10" or "per email approval").

How to Handle Partial Payments

For big jobs, invoice in stages:

Deposit: 25-50% upfront (before starting)
Progress payment: 25-50% at midpoint
Final payment: Remaining balance upon completion

Each stage gets its own invoice:

Invoice #1: "Deposit - Panel Upgrade Project (50%): $2,000"
Invoice #2: "Final Payment - Panel Upgrade Project (50%): $2,000"

Digital vs Paper Invoices

Digital (Email/PDF):

✅ Instant delivery
✅ Easy to track (you know they received it)
✅ Professional
✅ Customer can pay online

Paper (Mailed):

❌ Slow (3-5 days to arrive)
❌ Can get lost
❌ Looks old-school
✅ Some older clients prefer it

Best approach: Email PDF + mail paper copy if customer prefers.

Tools for Invoicing

You don't need expensive software. Options:

Free: Google Docs/Word template, save as PDF, email it
Simple: QuickBooks Self-Employed ($15/mo), FreshBooks ($15/mo)
Voice-to-invoice: Record what you did, AI generates the invoice, send from your phone (fastest)

The Bottom Line on Invoicing

Good invoicing = faster payment. Here's the checklist:

✅ Clear, specific descriptions
✅ Professional format (use a template)
✅ Send immediately (parking lot invoice)
✅ Sequential invoice numbers
✅ Clear payment terms (Net 30, due date)
✅ Follow up early (day 5, not day 45)
✅ Document change orders with approvals

When you invoice fast and follow up early, you get paid faster. It's that simple.

How to Invoice as a Contractor: Complete Guide (With Template)