How to Invoice as a Contractor
How to go from an approved estimate to a clear invoice: materials and labor on separate lines, a deposit and stage payments, extra work shown on its own, and follow-up when payment is late.
A contractor invoice should show the client exactly what they're paying for: materials, labor, permit fees and any extra work, each on its own line, with the deposit and later payments set out against the total.
If a client asks for your taxpayer identification number, the IRS explains Form W-9 on a page dated June 27, 2026 (last reviewed or updated), which states "Use Form W-9 to provide your correct Taxpayer Identification Number (TIN) to the person who is required to file an information return with the IRS to report, for example: Income paid to you." Check your state's licensing and permit rules, and talk to a lawyer or accountant before you settle your terms.
Worked example, with sample figures and no sales tax: a contractor quotes a deck with materials at $3,150.00, labor of 40 hours at $60.00 = $2,400.00, and a permit fee of $120.00, so $3,150.00 + $2,400.00 + $120.00 = $5,670.00. Once the client approves the estimate online, the contractor turns it into an invoice with two scheduled payments: a 30% deposit of $1,701.00 due before work starts and $3,969.00 due on completion. $1,701.00 + $3,969.00 = $5,670.00, equal to the invoice total, which is what Billed's help center requires.
Step-by-step invoicing guide
- 1
Start from an approved estimate
Billed's features page says "Yes your clients can approve or reject your estimates online." Billed's invoice software page says you can "convert an approved estimate into an invoice", so the prices the client saw carry over.
- 2
Put materials, labor and fees on separate lines
Billed's help center says you can "fill this section to charge against new items and services". For materials you reuse, Billed's invoice software page says you can "save the products and services you sell so you can pull them into an invoice instead of retyping them."
- 3
Add approved extra work when you convert
When the client approves extra work, add it as its own line. The help center's article on converting estimates says "You can add and edit any information here."
- 4
Set the deposit and stage payments
Billed's help center says "Add a percentage or flat amount and the due date for each installment." and "You can make unlimited installments. However, the sum of all installments should be equal to the total balance of the invoice."
- 5
Set the due date
Billed's invoice software page says "Set a due date on each invoice so your client knows when to pay." Use the terms in your contract.
- 6
Collect and record the payment
Billed's mobile app page says "Invoices carry a pay button when Stripe or PayPal is connected, so clients can pay by card the minute they receive it." Billed's invoice software page says "When a client pays by check or cash, record it as an offline payment so all your income is in one place."
Tips for contractor invoicing
- Describe each line in words the client will recognize from the estimate, such as deck framing or railing install.
- Get the client's written approval for extra work before you do it, and keep it with your records.
- Attach photos or drawings to your quote, as Billed's estimating page says you can "Attach important files and images with your estimates."
- Schedule reminders before the due date: Billed's help center says "You can set a schedule of payment reminders before and after the invoice's due date."
- Send a receipt once you're paid: Billed's invoice software page says "After a client pays, you can send them a payment receipt."
Common invoicing mistakes to avoid
- Starting work without a written estimate the client has approved.
- Retyping the estimate into the invoice and changing a price by mistake.
- Billing extra work without a line that shows what it was.
- Asking for the whole amount at the end of a long job when the contract allows a deposit and stage payments.
- Taking a check and not recording it, so the invoice still shows as unpaid.
How this works in Billed
Estimates clients approve online
Billed's features page says "Yes your clients can approve or reject your estimates online." Billed's estimating page says you can "Attach important files and images with your estimates."
Estimate to invoice
Billed's invoice software page says you can "convert an approved estimate into an invoice". Its help center adds, on converting: "You can add and edit any information here."
Line items and saved services
Billed's help center says you can "fill this section to charge against new items and services". Billed's invoice software page says you can "save the products and services you sell so you can pull them into an invoice instead of retyping them."
Deposits and stage payments
Billed's help center says "Clients can pay several installments against a single invoice."
Card, PayPal and check payments
Billed's mobile app page says "Invoices carry a pay button when Stripe or PayPal is connected, so clients can pay by card the minute they receive it." Billed's invoice software page says "When a client pays by check or cash, record it as an offline payment so all your income is in one place."
Frequently asked questions
Start Invoicing With Billed
Set up your account and send your first invoice with Billed.
At a glance
| Part of the job | On the invoice |
|---|---|
| Materials | Their own lines, from saved items |
| Labor | Hours and rate on its own line |
| Extra work the client approved | Its own line, added when you convert the estimate |
| Deposit and balance | Scheduled payments on one invoice |
When this isn't for you
If you already have an invoicing routine that works for your jobs, there's no need to switch.