Invoicing basics
Invoicing is how you formally ask a client or customer to pay you for work or goods. An invoice is a document that says what you provided, how much is owed, and when and how to pay. It’s the basis for getting paid and for your own records and taxes.
Who needs to send invoices?
Anyone who gets paid for work or goods outside of a regular W-2 job typically needs to send invoices (or similar documents like bills or statements). That includes:
- Freelancers and contractors
- Consultants and sole proprietors
- Small businesses selling services or products
- Landlords billing rent
- Anyone who needs to document income for taxes or to get paid
If you’re requesting payment from a client or customer, you’re effectively invoicing. Doing it in a clear, written form (e.g. invoice format) helps you get paid and stay organized.
How invoicing works
- You do the work or deliver the goods (or agree on a milestone).
- You create an invoice that lists what you delivered, the amount due, and payment terms. See how to create an invoice and how to write an invoice.
- You send the invoice to the client by email, portal, or mail. See how to send an invoice.
- The client pays by the due date (or you follow up if they don’t).
- You keep a copy of the invoice and record the payment for your books and taxes.
Invoice vs receipt
An invoice is a request for payment before or when payment is due. A receipt is proof that payment was received. You send an invoice to get paid; you may give or get a receipt after they pay. For more on the difference, see invoice vs receipt.
Why it matters
- Getting paid – A clear invoice tells the client exactly what to pay and when.
- Records – Invoices support the income you report on taxes and can be required in an audit.
- Disputes – A written invoice reduces “what was this for?” and helps resolve disagreements.
For a full overview, see how to create invoices and our invoice format guide. You can create an invoice for free with our tool and download a PDF to send.