How to Send Invoices as a Subcontractor

A subcontractor invoice is a formal request for payment issued by a subcontractor to a general contractor or client for services rendered or goods provided. This document serves as a record of work performed, agreed-upon costs, and the amount due, ensuring timely compensation. An effective invoicing process helps maintain consistent cash flow for the subcontractor’s business operations. This article guides subcontractors through creating, sending, and managing invoices to secure payments efficiently.

Gathering Essential Invoice Information

Before creating any invoice, gathering all necessary information ensures accuracy and completeness, forming the foundation of a professional invoice. Your business details, including your legal name, address, contact information, and your Employer Identification Number (EIN) or Social Security Number (SSN), should be readily available.

Client details are equally important: company name, contact person, address, and any specific project name or number. A clear description of services provided or goods delivered is necessary, including dates of service and achieved project milestones. Pricing details should state agreed-upon rates (hourly or flat fee), itemized costs, and quantities of materials used. Establish payment terms: due date, accepted payment methods, and any late payment policies. A unique invoice number and invoice date are crucial for record-keeping and tracking.

Creating Your Subcontractor Invoice

Once essential information is gathered, structure it into a clear, professional invoice document. Subcontractors have several options for creating invoices, including professional invoicing software, online templates, or custom spreadsheets. Invoicing software provides automation and professionalism; templates are cost-effective. Custom spreadsheets offer flexibility but require manual input and formatting.

Regardless of the method, the invoice should follow a typical layout for clarity and ease of processing. The header should display your business information, client details, unique invoice number, and the invoice issue date. An itemized list of services or products should detail each line item, including descriptions, quantities, rates, and individual subtotals. The invoice must present the subtotal, any applicable taxes, and the total amount due. Clear payment instructions, including accepted methods and bank details, should be provided to facilitate prompt payment.

Submitting Your Invoice

Once the subcontractor invoice is complete and accurately reflects all services and charges, the next step is its submission to the client. The most common method of submission is via email, with the invoice attached as a PDF document. This ensures that the formatting remains consistent across different systems and prevents unauthorized alterations. When emailing, use a clear and concise subject line that includes the invoice number and your company name, and ensure the accompanying message maintains a professional tone.

Some clients may require invoices to be submitted through dedicated online client portals, which streamline their internal processing. In certain situations, traditional mail may be necessary, particularly for clients who prefer physical documentation or for legal purposes. It is important to confirm receipt of the invoice, especially for new clients or significant projects, to prevent delays. Attach any relevant supporting documents, such as timesheets, expense reports, or proof of materials purchased, if required by contract terms.

Tracking and Following Up on Payments

Effective record-keeping is fundamental for managing invoices and ensuring timely payments. Subcontractors should track all invoices sent, including submission date, amount due, and current payment status. This can be achieved through simple spreadsheets, dedicated accounting software, or features within invoicing platforms, all of which offer clear overviews of outstanding receivables. Consistent record-keeping helps identify potential payment issues early and provides documentation for financial reporting.

Establish a clear follow-up schedule for payments not received by the due date. A polite reminder can be sent a few days after the due date, referencing the original invoice and payment terms. If payment remains significantly delayed, firmer communication is necessary, reiterating terms and any late payment policies. In cases of persistent non-payment, escalate communication to higher-level contacts within the client’s organization, or consult a legal professional for advice on next steps.