How to Invoice as a Freelancer
A step-by-step guide to freelance invoices: what to settle before you start, what each invoice should show, how to split a project into payments, and how to follow up.
In the US, the IRS Self-Employed Individuals Tax Center (page last reviewed or updated September 27, 2026) says: "Before you can determine if you are subject to self-employment tax and income tax, you must figure any net profit or net loss from your business." It adds: "You do this by subtracting your business expenses from your business income." Your invoices are where that business income is written down, so number each one, date it and keep a copy.
This guide takes a freelance invoice in order: the terms, the deposit, the work itself, the due date and the follow-up. It covers project, hourly and retainer work. The IRS estimated taxes page (US, last reviewed or updated September 25, 2026) says "Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed." Ask an accountant what that means for you.
Worked example (sample figures): a freelancer and a client settle on a $3,600.00 website project, paid in two parts: 40% at the start, $1,440.00, and 60% on delivery, $2,160.00. $1,440.00 + $2,160.00 = $3,600.00. Midway, the client asks for one more page, approved in writing at 4 hours × $65.00 = $260.00. It goes on the delivery invoice as its own line: $2,160.00 + $260.00 = $2,420.00, so the client pays $1,440.00 + $2,420.00 = $3,860.00 in all.
Step-by-step invoicing guide
- 1
Put the terms in writing first
Before any work, write down the deliverables, your price or rate, how many revisions are included, when each payment is due and how the client can pay. Have the client approve it before you begin. Billed's features page says "Yes your clients can approve or reject your estimates online."
- 2
Turn the approved estimate into an invoice
Billed's invoice software page says you can "convert an approved estimate into an invoice". After converting, Billed's help center says "You can add and edit any information here."
- 3
Split a larger project into payments
Take part of the price at the start and the rest at milestones or on delivery. Billed's help center says "A payment schedule lets you add a payment plan to the invoices." Its steps say "Choose a suitable option among percentage or flat amount." and "Fill out the payment amount and due date of each payment."
- 4
Bill hourly work from your tracked time
Billed's time tracking page says "Create an hourly rate project, set its hourly rate, and Billed tracks the charge for each task as you log it." and "From the project dashboard you can invoice one task or several at once."
- 5
Give each item its own line
Name each deliverable, block of hours or approved extra as a separate line with its price, so the client can compare it with what they approved. Billed's mobile app page says "Add line items, your logo, and tax, then send by email or share a link before you leave the site."
- 6
Set the due date and how to pay
Billed's invoice software page says "Set a due date on each invoice so your client knows when to pay." Billed's invoice software page says "Connect Stripe and each invoice gets a pay button for card payments, or connect PayPal to add a PayPal option." It also says "When a client pays by check or cash, record it as an offline payment so all your income is in one place."
- 7
Follow up before and after the due date
Billed's help center says "You can set a schedule of payment reminders before and after the invoice's due date." and "You can send up to three reminders." Billed's invoice software page says "After a client pays, you can send them a payment receipt."
Tips for freelancer invoicing
- Put the proposal or project name on every invoice, so the client's accounts team can find the right project.
- Send the delivery invoice together with the final files.
- Price an out-of-scope request in writing before you do it, then bill it as a separate line.
- Send retainer invoices on a fixed date every period. Billed's invoice software page says "For clients you bill on a schedule, set up a recurring profile once." and you "Choose the billing frequency (daily, weekly, monthly or yearly) and how many invoices to send, or keep sending until you stop."
- Keep every invoice and payment record together for your accountant.
Common invoicing mistakes to avoid
- Starting before the client has approved the price and the payment terms.
- Billing a long project in one invoice at the end, with nothing paid up front.
- No due date on the invoice, which leaves the timing up to the client.
- Adding extras to the final invoice that the client never approved.
- Sending one reminder and then letting an overdue invoice drift.
How this works in Billed
Estimates Clients Can Approve
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".
Payment Schedules
Billed's help center says "A payment schedule lets you add a payment plan to the invoices." Its steps say "Choose a suitable option among percentage or flat amount." and "Fill out the payment amount and due date of each payment."
Invoices From Tracked Time
Billed's time tracking page says "Create an hourly rate project, set its hourly rate, and Billed tracks the charge for each task as you log it." and "From the project dashboard you can invoice one task or several at once."
Recurring Invoices for Retainers
Billed's invoice software page says "For clients you bill on a schedule, set up a recurring profile once." and you "Choose the billing frequency (daily, weekly, monthly or yearly) and how many invoices to send, or keep sending until you stop."
Payment Reminders
Billed's help center says "You can set a schedule of payment reminders before and after the invoice's due date." and "You can send up to three reminders."
Frequently asked questions
Start Invoicing With Billed
Set up your account and send your first invoice with Billed.
At a glance
| How you charge | What the invoice shows |
|---|---|
| Fixed project | The price as a deposit plus a balance, due on separate dates |
| Hourly | The hours from your tracked time, each task on its own line |
| Retainer | The same amount on the same day each period |
| Extra work | Its own line, matching what the client approved |
When this isn't for you
This guide covers invoicing your own clients as a freelancer. If a marketplace bills the client for you, follow that platform's process for its payments.