10 Invoice Templates Every Small Business NeedsRunning a small business means juggling many roles — sales, operations, customer service, and finance. One simple but critical tool that keeps your cash flow healthy is the invoice. The right invoice template speeds payment, reduces disputes, and looks professional. Below are 10 invoice templates every small business should have, why each matters, and tips for customizing them.
1. Basic Sales Invoice
A clear, no-frills invoice for straightforward product or service sales.
Why use it
- Best for single-item transactions or simple services.
- Easy for clients to understand and pay quickly.
Key fields
- Invoice number, date, due date
- Seller and buyer contact details
- Description, quantity, unit price, subtotal
- Taxes, discounts, total due
- Payment instructions and terms
Customization tips
- Add your logo and brand colors for credibility.
- Include a short payment reminder line (e.g., “Please pay within 14 days”).
2. Service Invoice (Hourly)
Designed for service providers who bill by the hour (consultants, freelancers, contractors).
Why use it
- Tracks hours by date or task and justifies billed amounts.
- Useful for ongoing client relationships and retainers.
Key fields
- Time entries with dates, descriptions, hours, hourly rate
- Total hours and subtotal per task
- Any mileage or expense reimbursements
Customization tips
- Add a configurable timesheet attachment if clients require detail.
- Include a clear policy for rounding time and minimum billable increments.
3. Recurring Invoice (Subscription or Retainer)
Automated template for subscription services or recurring retainers.
Why use it
- Ensures steady cash flow and reduces manual billing overhead.
- Ideal for SaaS, membership sites, or monthly maintenance services.
Key fields
- Billing period, recurrence frequency, start/end dates
- Description of recurring service and amount per period
- Cancellation policy and notice period
Customization tips
- Offer multiple payment methods (ACH, card, direct debit) for convenience.
- Provide a link for clients to manage or cancel subscriptions.
4. Proforma Invoice
A preliminary invoice sent before delivery or service completion, often used for customs or deposits.
Why use it
- Sets expectations for cost and terms before order fulfillment.
- Common in international trade and large projects requiring deposits.
Key fields
- “Proforma” label, estimated totals, shipping terms, validity period
- Payment deposit percentage and method
Customization tips
- Clearly state that it is not a tax invoice and terms may change.
- Include shipping estimates and INCOTERMS for international shipments.
5. Credit Note / Refund Invoice
Issued when you need to credit a client for returns, overpayments, or discounts after invoicing.
Why use it
- Keeps accounting accurate and maintains customer trust.
- Necessary for VAT/GST adjustments in many jurisdictions.
Key fields
- Reference to original invoice, amount credited, reason for credit
- New balance due (if any)
Customization tips
- Keep language clear: “Credit Note” with a unique number.
- Explain how the credit can be applied (refund, account credit, future invoice).
6. Purchase Order Invoice (B2B)
Used when invoicing based on a client’s purchase order (PO), common in B2B relationships.
Why use it
- Matches the client’s procurement process and speeds approval.
- Reduces disputes by referencing PO numbers.
Key fields
- Client PO number, delivery/ship-to address, itemized line items
- Payment terms aligned with PO (e.g., Net 30)
Customization tips
- Ensure line-item descriptions match the PO exactly.
- Highlight any variations from the PO and request written approval.
7. Progress / Milestone Invoice
For projects billed in stages tied to deliverables or milestones.
Why use it
- Aligns payments with project progress and reduces project risk.
- Good for long-term contracts, construction, and custom development.
Key fields
- Project reference, milestone description, percent complete, amount due
- Total contract value and amount previously invoiced/remaining
Customization tips
- Attach proof of milestone completion (screenshots, delivery notes).
- Specify remedies in case of disputed milestone acceptance.
8. Final Invoice (Project Completion)
Issued when a project is complete and final payment is due.
Why use it
- Clearly closes the contract and summarizes all charges and prior payments.
- Essential for releasing final deliverables or transferring ownership.
Key fields
- Final balance due, list of previously billed amounts, retention amounts (if any)
- Acceptance sign-off section or link to final deliverables
Customization tips
- Include a polite thank-you and request for feedback or testimonials.
- State consequences for late payment (interest, collection steps) if applicable.
9. Expense Reimbursement Invoice
For employees or contractors requesting reimbursement for expenses incurred on behalf of the business or client.
Why use it
- Keeps expense claims organized and auditable.
- Helps separate reimbursable costs from billable services.
Key fields
- Expense date, category, description, receipt attachment, amount
- Employee/contractor details and project/client reference
Customization tips
- Require digital receipt uploads and a brief expense policy summary.
- Include currency conversion details for international expenses.
10. Provisional / Interim Invoice (Deposit)
For collecting deposits or partial payments before significant expenditures or procurement.
Why use it
- Secures commitment and covers upfront costs.
- Common for custom manufacturing, events, or large orders.
Key fields
- Deposit percentage or fixed amount, purpose of deposit, conditions for refund
- Link to full contract terms and schedule of subsequent invoices
Customization tips
- Make refund conditions transparent to avoid disputes.
- Tie deposits to a max hold period or start-of-work triggers.
Formatting & Legal Essentials (All Templates)
- Use a consistent invoice numbering system (e.g., INV-2025-0001).
- Include tax registration numbers where required (VAT/GST).
- State payment terms clearly (Net 30, due on receipt, late fee policy).
- Provide multiple payment options and clearly list bank details or payment links.
- Keep copies and attachments (contracts, timesheets, receipts) for bookkeeping and audits.
Design & Automation Tips
- Keep layout clean: logo, contact info at top; totals prominent at bottom-right.
- Use bold for totals and due dates to draw attention.
- Automate recurring, reminder, and late-fee workflows with invoicing software (e.g., QuickBooks, Xero, or lightweight alternatives).
- Provide PDF downloads and machine-readable formats (CSV, XML) for clients who import invoices.
Sample Checklist Before Sending an Invoice
- Invoice number assigned and unique.
- Correct client name, billing address, and PO number (if applicable).
- Accurate line items, quantities, and pricing.
- Taxes and discounts correctly applied.
- Payment terms and instructions included.
- Attachments (timesheets, receipts, contracts) appended as needed.
Using these 10 templates will cover most billing scenarios small businesses face. They keep communications professional, reduce payment friction, and help maintain clean accounting records.