What to Put on an Invoice: Required Information

An invoice serves as a formal request for payment for goods sold or services rendered. It provides a clear, documented record of a transaction between a seller and a buyer. This document helps businesses manage their accounts receivable and provides customers with a detailed breakdown of their financial obligation.

Essential Business and Client Information

Every professional invoice begins by clearly identifying both the party issuing the invoice and the party being billed. The sender’s information should include the full legal business name, physical address, phone number, and a professional email address for communication. This ensures the recipient knows precisely who is requesting payment and how to contact them regarding the transaction.

Similarly, the invoice must accurately display the client’s full legal name or business name and their complete billing address. This detail confirms the intended recipient and helps prevent billing errors or delays in payment processing.

A unique, sequential invoice number is mandatory for proper record-keeping and easy reference. This numbering system allows for efficient tracking of all issued invoices and simplifies reconciliation processes for both the sender and the recipient. Each invoice should prominently display the exact date it was issued, which is important for calculating payment due dates.

Some clients may provide a Purchase Order (PO) number. If a PO number is provided, including it on the invoice links the payment request directly to the client’s internal purchasing record. This streamlines their approval and payment processes, making it easier to match the invoice with their original order.

Detailed Service and Product Breakdown

Following the foundational identifying details, an invoice must provide a clear, itemized list of all products or services being billed. This detailed breakdown ensures transparency and helps the client understand exactly what they are paying for. Each item should have a clear and concise description, detailing the specific product, service, or work performed.

For products, the quantity of each item sold must be clearly stated, while for services, the number of hours or units of service provided should be specified. Alongside the quantity, the unit price or hourly rate for each individual item or service must be explicitly noted. This ensures the client can easily verify the cost of each component.

The line total for each item is calculated by multiplying the quantity by the unit price or rate. Displaying these individual line totals allows the client to see the cost accumulation for each product or service before any overall calculations. This detail helps prevent disputes and builds trust by providing clarity on charges.

Financial Summary and Payment Instructions

After detailing each item, the invoice must present a clear financial summary of the entire transaction. The subtotal represents the sum of all individual line items before any taxes, shipping costs, or discounts are applied. This provides a baseline figure for the goods or services rendered.

If applicable, any sales tax or other relevant taxes should be clearly listed as a separate line item. The specific tax amount must be accurately calculated based on the subtotal and the applicable tax rates for the type of goods or services and the customer’s location. Businesses are responsible for collecting and remitting these taxes, making their clear display on the invoice important for compliance.

Any discounts offered should also be itemized and subtracted from the subtotal. The final amount the client needs to pay, known as the total amount due, must be prominently displayed. This figure represents the complete financial obligation including all charges, taxes, and applied reductions.

Clear payment terms are essential, specifying the timeframe within which payment is expected, such as “Net 30 days” or “Due on receipt.” A specific payment due date should be included, providing a definite deadline for the client. The invoice should clearly outline the accepted payment methods, such as bank transfer details, mailing address for checks, or links to online payment portals, to facilitate prompt payment.