Small Business Invoice Template

Professional invoices do more than request payment - they build credibility and protect your business.

First Impressions Count
Your invoice is often the last touchpoint with customers. A clean, professional invoice reinforces that you run a legitimate, organized business worthy of their continued patronage.

Legal Protection
A proper invoice serves as a legal record of the transaction. It documents what was sold, when, for how much, and under what terms. This protects you in disputes or audits.

Faster Payments
Clear, professional invoices get paid faster. When customers can easily understand what they owe and how to pay, they're more likely to pay promptly.

Better Record Keeping
Consistent invoicing creates organized financial records. This simplifies tax preparation, helps track business performance, and makes audits less stressful.

Business Identity
Branded invoices with your logo and consistent formatting reinforce your business identity and professionalism.

Include these elements on every invoice:

• Your business name and logo
• Business address
• Phone number and email
• Website (optional)
• Tax ID or business number (if applicable)

• Invoice number (unique, sequential)
• Invoice date
• Due date
• Payment terms

• Customer/company name
• Billing address
• Contact person
• Email address

• Clear description of products/services
• Quantity
• Unit price
• Line total
• Any applicable discounts

• Subtotal
• Tax (if applicable)
• Shipping (if applicable)
• Total amount due

• Accepted payment methods
• Bank details or payment links
• Check payable instructions

• Thank you message
• Return/refund policy (if relevant)
• Contact for questions

Follow these practices to improve cash flow and reduce payment delays:

Invoice Promptly
Send invoices as soon as work is complete or products are delivered. The longer you wait, the less urgent payment feels to customers.

• Use descriptive line items (not just "Services")
• Include dates of service
• Reference PO numbers or quotes
• Break down complex jobs

• State due date prominently
• Specify accepted payment methods
• Include late payment policy
• Offer early payment discounts (2% Net 10)

• Include direct payment links
• Accept multiple payment methods
• Provide clear bank details
• Consider online payment platforms

• Send reminder before due date
• Follow up immediately when overdue
• Have a standard collections process
• Document all communications

• Number invoices sequentially
• Record payment dates
• Note partial payments
• Keep copies of all invoices

These errors can delay payment or create problems:

• No invoice number (makes tracking hard)
• Missing due date (no urgency)
• Incomplete contact info
• No payment instructions

• Vague line items like "Services"
• No dates for work performed
• Missing quantities or rates
• Bundled items without breakdown

• Limited payment options
• Missing bank details
• No online payment option
• Unclear instructions

• Invoicing too late
• Wrong due dates
• Not following up on overdue invoices
• Inconsistent invoicing schedule

• Typos and errors
• Inconsistent formatting
• Missing business info
• No branding

• Wrong tax calculations
• Missing tax ID
• Not separating taxable items
• Incorrect tax rates

Choose payment terms that balance cash flow needs with customer expectations:

Common Payment Terms

Due on Receipt
Payment expected immediately. Best for small purchases or one-time customers.

Net 15
Payment due in 15 days. Good balance of urgency and flexibility.

Net 30
Industry standard. Payment due in 30 days. Expected by most B2B customers.

Net 60/90
Extended terms for large customers or specific industries. Use carefully as it impacts cash flow.

• Your cash flow needs
• Industry norms
• Customer relationship
• Order size
• Customer payment history

• Offer early payment discount (2/10 Net 30 = 2% off if paid in 10 days)
• Charge late fees (state clearly on invoice)
• Require deposits for large orders
• Accept credit cards (instant payment)

• Check credit for new B2B customers
• Require deposits from new customers
• Shorter terms for first-time buyers
• Credit limits for repeat customers