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Can you create an invoice for free?

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Last editedMar 20232 min read

Learning how to create an invoice for free can be complicated at first, but it gets easier once you understand all the steps involved. You can find an invoice template for free online or create one entirely from scratch, as long it contains all the relevant information.

In this guide on how to create an invoice for free, learn the five key steps that are necessary to create invoices for free. These steps are:

  • branding your invoice

  • adding invoice information

  • describing goods/services

  • total amount owed and tax details

  • payment terms and conditions

Branding your invoice

Technically, this step isn’t absolutely necessary so long as all the other steps are completed, but branding your invoice gives your company a more professional tone.

When you create an invoice for free, add a professional header at the top of the invoice that includes your business name and logo. Also ensure all colours used are consistent with your company’s branding on your website and social media.

Adding invoice information

Invoice information starts with the word ‘invoice’ near the top so it is easily identifiable as such by the client. If you send multiple invoices to the same client, then an identifying numbering system is also necessary. Include the invoice number near the top, along with the date. Then add your business name, contact name and contact details, as well as the client’s business name, contact name and contact details.

Any business tax IDs such as ABN numbers must also be included here, as well as your limited company registration number if you have one.

Describing goods/services

The main body of the invoice consists of a list of all the goods or services that the invoice is for. For goods, include the name of each item sold and the quantity, along with the rate per unit and subtotal. For services, add all relevant details that you are charging for, such as time spent, labour incurred and materials used, with rates and subtotals included.

Listing everything you are charging for and how much each element costs individually makes your work and pricing transparent.

Total amount owed and tax details

After the list of goods or services rendered, add the total amount owed and any relevant tax details. Knowing how to create an invoice for free means you are responsible for ensuring the total has been calculated 100% accurately, so be sure to double-check you have it right before sending the invoice to the client.

Adding the tax details is also crucial if the incurred taxes are being covered by the client. This is simply because the taxes make the total owed greater than the total of work charged in the list of goods or services rendered.

Payment terms and conditions

When you create an invoice for free, add all payment terms and conditions that the client must adhere to at the very bottom of the invoice. This specifies when the client’s payment is due and how the client is to pay, be it by bank transfer, direct debit or other means. It can also simply be a list of acceptable payment methods and currencies.

If there are any penalties incurred for late payment, include these at the bottom of the invoice. You may also have early payment discounts or other conditions which can be added here too.

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