Getting the job done is only part of getting paid. You also need to give your customer a clear record of the work completed, what they owe, and how they can pay you.
A professional invoice breaks down labor, materials, taxes, payment terms, and the total amount due. Whether you create your own, use a template, or purchase invoicing software, the same basic information belongs on every invoice.
Here’s how to create an invoice, what to include, and how to build a billing process that works from the job site to the office.
What is an invoice?
An invoice is a document that requests payment from a customer for work you’ve completed or products you’ve provided.
For contractors, that could mean billing a homeowner after a roof replacement, charging for labor and materials on a remodel, or invoicing a customer as different phases of a larger project are completed.
An invoice also gives you and your customer a record of the transaction. It spells out what you’re charging for, how much is due, and the terms for payment.
What should a contractor invoice include?
A good invoice gives your customer enough information to understand the bill without having to call you for an explanation.
Most field service invoices should include:
- Invoice details: Include an invoice number, issue date, project or service address, and payment terms.
- Customer information: Add the name and contact information for the person or business responsible for payment.
- Itemized charges: Break down the labor, materials, services, and other costs you’re billing for. Include quantities and unit prices when applicable.
- Sales tax: Include any taxes that apply to the work or materials.
- Total amount due: Make the final balance easy to find.
- Payment methods: Tell customers how they can pay, whether that’s online, by card, bank transfer, cash, or check.
- Notes: Add any additional information your customer needs to know.
- Supporting documentation: Photos and project files can give customers more context for the work they’re paying for.
The exact information you need may depend on your business, location, customer, and type of work.
Invoice templates for different trades
The basics of an invoice stay pretty consistent, but the line items can look very different depending on the work you do.
A basic construction invoice might include separate charges for materials, equipment, subcontractor work, labor, and change orders. However, plumbing, HVAC, landscaping, restoration, and other trades will have their own common materials and services.
An invoice template can give you a starting point, but you still need to update it for every project. An invoice generator or invoicing app can make that easier by letting you reuse common items and pull existing customer records and project information into the bill.
How to create an invoice for contractor work
Your customer should be able to open an invoice and quickly figure out what they’re paying for, how you arrived at the total, and what they need to do next. Here’s how to create one:
1. Add the customer and project details
Start by identifying who you’re billing and which job the invoice covers.
Include the customer’s name and contact information along with the project or service address. Double-check the billing contact before sending it, especially when working with property managers, general contractors, insurance adjusters, or commercial customers.
2. Add the invoice date and payment terms
Give every invoice an issue date and clear payment terms so your customer knows when you expect payment.
Depending on how your business handles billing, payment may be due immediately or within a set number of days. Whatever terms you use, keep them consistent and make the due date easy to understand.
3. Itemize the work
Break the invoice into individual line items instead of giving your customer one unexplained total. A roofing invoice, for example, might separate shingles, flashing, underlayment, labor, disposal fees, and other materials or services.
Each line item should clearly explain what you’re charging for and, when applicable, include the quantity, unit type, unit price, and markup. If your business regularly sells the same materials or services, a Price Book can save you from rebuilding those line items for every job.
Accurate pricing matters beyond the final invoice, too. Before settling on your rates or markup, a profit margin calculator can help you understand how your costs and selling price affect the amount you actually make on a job.
4. Add sales tax
Add the appropriate sales tax based on the work you’re billing for and the requirements where you operate. Some charges may not be taxable. Labor, for example, may be treated differently from materials depending on your location and type of work.
5. Add photos and supporting documents
An invoice tells your customer what they’re paying for. Attach relevant job site photos or documents when they provide useful context for the bill. That could include photos of completed work, installed materials, repairs, damage, or another part of the project tied to a charge.
This can be especially useful for insurance work, property management, subcontracting, and jobs where the person paying the invoice wasn’t physically on site.
6. Add a customer note
Use the memo section for any short message your customer should see. It can be as simple as a thank-you, or you can use it to provide additional context about the invoice or payment. Keep it short so important information about the bill doesn’t get buried.
7. Give customers a way to pay
Tell the customer exactly how they can pay the invoice, either by check, cash, or online payment. Giving customers a direct way to pay removes another step between receiving the invoice and settling the balance.
Using a payment processing software gives customers the easiest option to pay online by credit or debit card or bank transfer.
8. Review and send the invoice
Review the customer information, line items, quantities, prices, taxes, payment terms, attachments, and final balance. If the invoice differs from what the customer originally approved, make sure those changes have already been communicated.
Choosing the right invoicing software
For contractors managing jobs every day, field service invoicing software can keep billing closer to the actual work. Instead of copying information from project management tools, photos, proposals, spreadsheets, and customer records into a separate invoice, you can use information that’s already attached to the job.
The best invoicing software for your business depends on how you work, but contractors should pay attention to more than whether a tool can generate a PDF. Look at how easily you can create itemized invoices, reuse common pricing, handle taxes, collect payments, and access invoices from the field.
It’s also worth considering how the software connects billing to the rest of the project. If your crews already take job site photos, document completed work, and manage customer information somewhere else, moving all of that information into a standalone invoice tool creates another task.
Common invoicing mistakes to avoid
Small invoicing mistakes can create unnecessary back-and-forth when it’s time to collect payment.
Watch for missing or incorrect customer information, unclear line-item descriptions, incorrect quantities or pricing, missing payment terms, and taxes applied to the wrong items. It’s also worth checking that the final invoice matches the work your customer approved.
Documentation matters, too. If a charge could raise a question, attach the project photos or files that explain it rather than making the customer track you down for more information.
Tips for a better invoicing process
A good invoicing process starts before you create the invoice.
Keep customer information attached to the project from the beginning. Document the work with photos as your crew completes it. Keep proposals, approvals, and billing connected whenever possible. When it’s time to invoice, most of the information you need is already there.
Sending invoices promptly helps, too. When the job is complete and the details are fresh, create the invoice, review it, and get it to the customer instead of adding billing to a pile of office work for later.
Create and send invoices with CompanyCam
CompanyCam keeps billing connected to the Project where your job documentation already lives. Keep the work and the bill together, from the first photo to final payment.
With CompanyCam, you can pull pricing from your price book, add job site photos and files, and send the invoice directly to your customer. You can also create an invoice from an accepted Proposal and bill against the remaining balance as work moves forward, or create a one-off invoice for the project.
Turn completed work into invoices.
See how CompanyCam helps you go from documenting the job to creating and sending the invoice in one place.
