A professional invoice does more than request payment — it protects you legally, sets clear expectations, and signals that you run a serious business. Here's exactly what to include on every invoice, how to write payment terms that get you paid faster, and a free generator to create one right now.
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A compliant contractor invoice must have:
1. Your business name and contact details — name, phone, email, and business address 2. Your ABN or tax ID (if applicable in your jurisdiction) 3. The client's name and address 4. Invoice number — a unique sequential number (INV-0001, INV-0002, etc.) 5. Invoice date — the date you're issuing the invoice 6. Due date — when payment is expected 7. A detailed description of work done — not just "plumbing work," but specifically what was done 8. Itemised line items — each service or material on its own line with quantity, unit price, and total 9. Subtotal, any tax, and total amount due 10. Payment instructions — how you want to be paid (bank transfer, card, check) and account details if applicable
Missing any of these can create disputes, delay payment, or cause issues with your accountant.
"Payment due on completion" is the weakest possible payment term. It's vague, unenforceable, and gives clients an excuse to delay.
Effective payment terms are specific:
- "Payment due within 7 days of invoice date" — clear, specific, professional - "30% deposit required before work commences, balance due within 7 days of completion" - "Net 14" (common in commercial contracting, means payment within 14 days)
For residential clients, net 7 to net 14 is appropriate. For commercial clients, net 30 is common, but try to negotiate shorter if you can.
Always add a late payment clause: "Invoices unpaid after 30 days will incur interest at 2% per month." You may rarely enforce this, but it signals that you take payment seriously.
Invoice numbering matters for your records, your accountant, and any disputes. Use a sequential system from the first day you're in business.
Simple format: INV-0001, INV-0002, and so on. Never skip numbers or reuse numbers.
If you have multiple clients or projects, you can use a prefix: SMITH-001 or 2026-042. The important thing is consistency — your accountant and any auditor should be able to find any invoice immediately by its number.
The work description on your invoice should be specific enough that anyone reading it knows exactly what was done — including someone who wasn't there.
Weak: "Plumbing work — $1,400"
Strong: "Supply and install new hot water unit (Rheem 250L), including isolation valve, pressure relief valve, and drain pipe to existing overflow point. Removal and disposal of old unit. Labor: 4 hours. Materials: unit + fittings."
Why it matters: If a client disputes a payment or questions what they paid for 6 months later, your invoice is your record. Vague descriptions get disputed. Specific descriptions don't.
You can create a professional contractor invoice right now — no account required — using TaskArc's free invoice generator at /tools/invoice-generator.
Enter your details, add your line items, and download a PDF in seconds. If you want to save and track invoices over time, you can create a free TaskArc account and all your invoices are stored and organised automatically.
Pro tip: Once you're in TaskArc, you can create a quote first and convert it to an invoice in one click — the numbers carry over automatically, so you're not re-entering anything.
A well-written invoice is the last impression you leave on a client. Make it professional, make it specific, and send it the same day the job is done. The faster you invoice, the faster you get paid.
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