Invoice
Definition
An invoice is a formal document a freelancer or business sends to a client listing services provided, amounts owed, payment terms, and payment instructions. It serves as both a payment request and a legal record of the transaction.
Detailed Explanation
Invoices are the primary way freelancers request payment. A professional invoice includes: your business name and contact information, client name and billing address, a unique invoice number (sequential, never reused), the invoice date, a due date (Net 15, Net 30, or Due on Receipt), individual line items with descriptions and amounts, subtotal, tax, and the total amount due, and payment instructions (PayPal link, bank transfer details). AI-powered invoicing tools can generate complete invoices from plain English descriptions — for example, typing 'Logo design $300, landing page $700 for Acme Corp, Net 15, 6% VAT' creates a complete invoice with line items, tax calculations, client matching, and a PayPal payment link automatically.
Freelancer Example
A freelance web developer completes a homepage redesign for a client. They create an invoice for $850 with Net 15 terms, including their bank details for payment. The invoice serves as both the bill and a record for tax purposes.