Send an invoice document pack

An invoice is the difference between 'we owe you something' and 'this is exactly what we owe, here's how to pay, and the clock starts now.'

Who this pack is for

You're a freelancer, contractor, side hustler, or small business who just finished work and needs to bill the client. You don't want a $40/month QuickBooks subscription for the two invoices you send a year. You want a clean, plain-language invoice you can email or print today, that includes the right details for the client to actually pay you, and that gives you the paper trail you'll need if they don't.

When to use it

Send the invoice the day you finish the work, or on the schedule your contract specifies. Invoice-on-completion is the default for one-off work; weekly or monthly is normal for ongoing engagements. The 'due date' field on an invoice triggers important defaults — Net 30 is the small-business standard but unenforceable unless agreed; Net 15 or 'due upon receipt' is increasingly common and easier to enforce. Match the due date on the invoice to the payment terms in your contract or signed scope-of-work; mismatch is the first thing a client will point at when they want to slow-pay.

What it doesn't cover

This is a single invoice for a single client. It is not a recurring billing system, not a subscription manager, not a payment processor. It does not handle sales tax calculation (which varies by state, by buyer location, and by product type — talk to a CPA if you sell physical goods in multiple states). It does not handle international VAT or cross-border invoicing requirements. It does not handle Stripe / PayPal / ACH integration directly — you set up payment infrastructure separately and reference it on the invoice. And it does not generate a 1099-NEC; that's a year-end IRS form your client issues to you for tax reporting, separate from any individual invoice.

Common questions

Should I include sales tax?

Depends on what you're selling and where. Services are generally not taxable in most states; physical goods almost always are; SaaS is taxable in some states and not others. If you have nexus in the buyer's state (employees, inventory, or in some states a revenue threshold), you collect tax at the buyer's rate. If unsure, charge no tax and note 'sales tax not applicable to this transaction' on the invoice; the client's accounting team will tell you if they expect tax. For ongoing work, get a state-by-state tax determination from a CPA before invoicing.

What payment methods should I offer?

ACH (bank transfer) is cheapest for both sides and best for B2B invoices over $500. Credit card via Stripe/PayPal is convenient but eats 2.9% — fine for small amounts, painful for large. Wire transfer for international. Avoid checks for new clients (they bounce; you have no recourse for a week). The pack leaves the payment method as a fill-in so you can specify what you accept.

What does Net 30 actually mean?

Payment due 30 days from the invoice date, not 30 days from when the client received or processed it. Net 15 is 15 days, Net 60 is 60 days, 'Due on receipt' means now. The invoice date is the start of the clock — if the client claims they didn't receive it for two weeks, send it again with the same invoice number and note that the original was sent on [date].

Can I charge late fees?

Only if your contract or invoice explicitly says so. A 'late fee of 1.5% per month' or '$50 flat fee after 30 days late' is standard and enforceable if disclosed in advance. Some states cap late fees on consumer transactions; for B2B, the cap is what you and the client agreed to. Add late-fee language to the bottom of your invoice ('Late payments accrue interest at 1.5% per month') so it's not a surprise when you charge.

How long do I have to send an invoice?

Practically, send it the day you finish or per your contract. Legally, you have whatever the statute of limitations on the underlying contract allows — typically 4–6 years for written contracts, 2–4 years for verbal. The longer you wait, the harder it is to collect; clients forget, accounting changes, the project becomes ancient history. Send it the same week.

What if the client doesn't pay?

Step 1: friendly reminder email at 7 days past due ('just checking in on invoice #001'). Step 2: formal demand letter at 30 days past due, with a specific deadline to respond. Step 3: small claims court (limit $5,000–$10,000 per state) or send to a collection agency. For larger amounts, an attorney's demand letter for a few hundred dollars is often enough to shake the payment loose without a lawsuit. Pike has a separate demand-letter pack for unpaid invoices.

Should I number my invoices?

Yes, always — sequential and unique. INV-001, INV-002, etc. is fine. Numbering matters for your bookkeeping (so each invoice is unambiguously identifiable), for tax reporting, and for client conversations ('I'm calling about INV-046'). If you skip numbers or reuse them, your accountant will hate you.

What information must be on the invoice?

Your business name and contact info, the client's name and contact info, an invoice number, the date issued, the date due, a clear description of what was billed, the amount, and how to pay. Optional but useful: project reference number, PO number (if the client provided one — they'll often refuse to pay without it), tax ID for international invoices, late fee terms, and a thank-you line at the bottom (small thing, makes invoices feel less adversarial).

Pike provides plain-language legal information, not legal advice. State and local rules change. If money, custody, or your housing is on the line, talk to a licensed attorney or your local legal aid office.