Question 1

How do I create an invoice for my small business?

Accepted Answer

Creating an invoice is simple. Start by downloading our free template in Excel, PDF, or Word. Add your business information (name, address, contact details, logo). Enter your client details (name, company, billing address). Create a unique invoice number and add the date. List each product or service with description, quantity, and price. The template automatically calculates subtotals and totals. Add payment terms (like Net 30) and accepted payment methods. Save as PDF and send to your client via email. Most small businesses can create their first invoice in under 5 minutes using our template.

Question 2

Is this business invoice template really free?

Accepted Answer

Yes, completely free with no hidden costs or signup required. Download in Excel, PDF, or Word format as many times as you need. No account registration, no email required, no credit card, no limitations. Just click download and start using it for your business immediately.

Question 3

What should I include on a business invoice?

Accepted Answer

Every business invoice should include: your company name and contact information (address, phone, email, website), your logo if you have one, client name and company details, unique invoice number, invoice date and payment due date, detailed descriptions of products or services provided, quantities and unit prices, subtotal before tax, applicable taxes (sales tax, VAT, GST), total amount due, payment terms (Net 15, Net 30, etc.), accepted payment methods and instructions, and any relevant notes or terms of service.

Question 4

Can I customize the business invoice template?

Accepted Answer

Absolutely. The template is fully customizable. Add your company logo and brand colors, change fonts and styling, modify or add line items and fields, adjust tax rates and labels for your jurisdiction, add custom payment instructions and banking details, include terms of service or warranty information, add purchase order fields for corporate clients - make it completely yours. Excel and Word formats are especially easy to customize.

Question 5

Which format should I use - Excel, PDF, or Word?

Accepted Answer

Use Excel for creating invoices because formulas automatically calculate subtotals, taxes, and totals. Excel is also great for tracking multiple invoices. Use PDF for sending invoices to clients - it looks polished and professional and cannot be edited. Use Word if you prefer text editing or need to make quick formatting changes. Many businesses create invoices in Excel then export to PDF before sending to clients.

Question 6

Do I need to charge sales tax on my invoices?

Accepted Answer

It depends on your location, business type, and what you are selling. In the United States, sales tax rules vary by state - most states tax physical products but many exempt services. In the European Union, VAT typically applies to both goods and services. In Canada, GST/HST generally applies. Check with your local tax authority or accountant to understand your specific obligations.

Question 7

What are standard payment terms for business invoices?

Accepted Answer

Common payment terms include Net 30 (payment due within 30 days) which is standard for B2B transactions, Net 15 (due within 15 days) for faster payment, Net 60 for large corporations with longer payment processes, and Due Upon Receipt for small transactions or new clients. Always discuss and agree on terms before starting work and include them prominently on every invoice.

Question 8

Should I require a deposit before starting work?

Accepted Answer

Yes, for projects over $2,000 or new clients, request 25-50% deposit before starting work. Deposits are standard business practice and serve multiple purposes: they ensure client commitment and seriousness, protect your business from non-payment risk, improve cash flow, and cover initial expenses. Most legitimate businesses expect to pay deposits.

Question 9

How do I follow up on unpaid invoices?

Accepted Answer

Use a gentle escalation approach: Send friendly reminder 3-5 days before due date, follow up 2-3 days after due date with polite email ("Following up on invoice #123 which was due on March 15"), make phone call 7-10 days after due date, send firmer email after 2 weeks overdue, consider pausing work or involving collections after 30 days. Most late payments are process issues, not refusals to pay, so stay professional.

Question 10

What payment methods should I accept?

Accepted Answer

At minimum, accept bank transfers (ACH, wire transfer) and checks for local clients. However, offering digital payment options dramatically speeds up payment. Consider accepting PayPal (widely used, 2.9% + $0.30 fee), Stripe (professional, similar fees), credit cards (highest fees but fastest payment), Zelle or Venmo (for smaller amounts), and Wire transfer for international clients. More payment options mean faster payment.

Question 11

How should I number my business invoices?

Accepted Answer

Create a simple consistent system and stick to it. Popular formats include Sequential (001, 002, 003), year-based (2024-001, 2024-002, 2025-001), or client-based (CLIENT-001, CLIENT-002). Whatever system you choose, never reuse invoice numbers and never skip numbers. This helps with bookkeeping, tax records, and looks professional. Some businesses start at 1001 instead of 001 to appear more established.

Question 12

Can I send invoices via email or must they be printed?

Accepted Answer

Email is completely acceptable and actually preferred by most modern businesses. Email is faster, creates an automatic paper trail, and is more environmentally friendly. Send as PDF attachment (never send editable Word or Excel files to clients). Use clear subject line like "Invoice #123 from [Company Name] - Due March 15". Include brief message in email body, then attach the PDF invoice.

Question 13

Should I include my business registration number?

Accepted Answer

If you operate as a registered business (LLC, corporation, partnership), include your full legal business name on invoices. For corporate clients, including your Tax ID, EIN (in US), VAT number (in EU), or ABN (in Australia) makes their payment processing easier and is often required for them to pay you. Check your local business requirements for what must be included on invoices.

Question 14

What should I do with paid invoices?

Accepted Answer

Mark invoice as paid in your records with date and payment method, send payment receipt or confirmation to client, save both invoice and receipt for at least 7 years for tax purposes and potential audits, update your accounting software or bookkeeping system, file digitally in organized folder structure by year and client. Good record keeping makes tax preparation easier and helps resolve any future questions.

Question 15

Should I offer early payment discounts?

Accepted Answer

If cash flow is important, yes. Offering 2-3% discount for payment within 7 days can significantly speed up payment. Note it clearly on invoice as "2% discount if paid within 7 days" with both discounted and full amounts shown. Many clients will take advantage of this, and getting paid faster is often worth more than the small discount.

Question 16

How do I handle invoice disputes with clients?

Accepted Answer

When a client disputes an invoice, respond quickly and professionally. Ask specific questions about which items they dispute and why. Provide documentation of work completed or goods delivered (contracts, emails, delivery receipts). Review your original agreement or purchase order. Be willing to clarify, but stand firm on agreed-upon terms. For future prevention, get written approval before starting work.

Question 17

Can I charge interest on late payments?

Accepted Answer

In most jurisdictions yes, but you must include interest terms on invoice before work begins - you cannot add them retroactively. Common rates are 1.5% per month (18% annually) on overdue balances. Check local laws as some jurisdictions limit interest rates or require specific language. Many businesses include terms but rarely enforce them - just having them stated encourages timely payment.

Question 18

What is the difference between an invoice and a receipt?

Accepted Answer

An invoice is a request for payment sent before or when payment is due. It includes payment terms and due date. A receipt is proof of payment sent after payment is received. It confirms payment date and method. Invoices say "please pay this amount by this date" while receipts say "payment received, thank you". Send invoice first to request payment, then send receipt after you receive payment.

Question 19

Should I include terms and conditions on my invoice?

Accepted Answer

Yes, include basic terms like payment due date, late payment fees, accepted payment methods, refund or return policy if applicable, and warranty information if relevant. For complex terms, you can reference a separate Terms of Service document. Including terms on invoices protects your business and sets clear expectations with clients.

Question 20

How often should I invoice clients?

Accepted Answer

It depends on your business and agreement. For project work, invoice at completion or at predetermined milestones (like 50% at start, 50% at completion). For ongoing services, invoice monthly or bi-weekly. For hourly work, invoice weekly or bi-weekly to keep amounts manageable. For retainer clients, invoice on same day each month. More frequent invoicing generally results in better, more predictable cash flow.

Question 21

Why use Invoice Mama instead of free templates?

Accepted Answer

Free templates work great for occasional invoicing, but if you invoice regularly, Invoice Mama saves significant time. Enter your business details once and they are saved for all future invoices. Clients are saved for quick repeat invoicing. Invoice numbers auto-increment. Send invoices via email directly from the platform. Accept online payments (clients pay 2-3x faster). Automatic payment reminders follow up for you. Track paid, pending, and overdue invoices at a glance. Generate tax reports instantly. Start free with 10 invoices, then just $69 once for unlimited lifetime invoices - no monthly fees ever.

Free Business Invoice Template

Download Your Free Business Invoice Template

Excel Template

PDF Template

Word Template

Everything Your Business Need for Invoicing

Professional Business Formatting

Flexible Line Items

Automatic Calculations

Tax & Discount Fields

Payment Terms Section

Multiple Format Options

Easy Customization

Client Information Section

Invoice Numbering

Notes & Terms Section

How to Create Your Business Invoice

Choose Your Format

Add Business Information

Enter Client Details

List Products or Services

Set Terms & Send

What to Include on Your Business Invoice

Product Sales

Professional Services

Creative Services

Technical Services

Administrative Services

Subscription Services

Additional Charges

Best Practices for Business Invoicing

Send Invoices Immediately

Use Clear Descriptions

Set Payment Terms Upfront

Require Deposits for Large Projects

Use Professional Invoice Numbers

Include Multiple Payment Options

Add Late Payment Penalties

Send Professional Reminders

Maintain Detailed Records

Consider Early Payment Discounts

Why Businesses Choose Invoice Mama

Invoice in Minutes

Get Paid 2-3x Faster

Look Professional

Track Everything

Work Anywhere

No Monthly Fees

Ready to upgrade from templates?

Templates are great. Automation is better.

What you get with Invoice Mama:

Frequently Asked Questions

More Invoice Templates

Consulting Invoice Template

Freelance Invoice Template

Marketing Invoice Template