Freelance Invoicing: Best Practices That Actually Work

After talking to hundreds of freelancers, we've learned that invoicing isn't just about the invoice itself. It's about setting expectations, maintaining relationships, and actually getting paid. Here's what works.

Set Expectations Before You Start

The biggest invoicing problems happen before the invoice is even created. Here's what to discuss upfront:

Before you start any project:

Agree on the total price or hourly rate

Clarify what's included (and what costs extra)

Decide on payment terms (NET 7, NET 15, etc.)

Discuss the payment schedule (50% upfront, full payment on completion, etc.)

Put it in writing (even if it's just an email)

One freelance designer we spoke to said: "I used to skip this because it felt awkward. Now I lose way less time chasing payments because everyone knows what to expect."

The Upfront Payment Debate

Should you ask for money upfront? Short answer: Yes, for most clients.

When to require a deposit:

New clients (always)

Projects over $500

Long-term projects (monthly retainers)

Clients with slow payment history

Typical deposit amounts:

25% for ongoing clients you trust

50% for new clients

100% for very small projects (under $200)

When you might skip it:

Long-term clients with perfect payment history

Large companies with standard NET 30 terms

Very small projects where it's more hassle than it's worth

Invoicing Schedule: What Works

Different project types need different approaches.

One-time projects:

Send the invoice immediately when you deliver the work. Don't wait until Monday if you finish on Friday—send it Friday.

Hourly work:

Bill weekly or bi-weekly. Monthly is too long—you're essentially giving an interest-free loan.

Retainer clients:

Invoice on the same day each month. First of the month works well. Consistency helps both you and the client budget.

Long projects (3+ months):

Break it into milestones with invoices at each milestone. Never do months of work before invoicing.

The Invoice Itself: Keep It Simple

You don't need to overthink this.

Essential information:

Invoice number (make up a system, any system)

Date

What you did (be specific)

Amount

Due date

How to pay

Good description:

"Website design: Homepage, About, Contact pages. Includes 2 revision rounds. As agreed on October 1st."

Bad description:

"Website work"

The more specific you are, the fewer questions you'll get.

Payment Terms: What's Realistic?

NET 30 is standard, but...

It's what big companies use, not what makes sense for freelancers. You have bills too.

Better options:

Due on Receipt (for new clients)

NET 7 (for trusted clients)

50% upfront, 50% on delivery (for projects)

One freelance writer told us: "I used to do NET 30 because I thought it was 'professional.' Now I do NET 7 and my cash flow is so much better. No one has ever complained."

When Clients Are Late

They will be. It happens. Here's how to handle it without burning bridges.

Day of due date (not overdue yet):

Send a friendly reminder: "Hey! Just a heads up that invoice #123 is due today. Let me know if you have any questions about payment."

7 days late:

More direct: "Hi [name], invoice #123 is now 7 days overdue. Can you let me know when I can expect payment?"

14 days late:

Pick up the phone or send a firmer email: "I need to follow up on invoice #123, which is now 2 weeks overdue. Please let me know what's going on."

30 days late:

Time for consequences: "Invoice #123 is now 30 days overdue. Per our agreement, I'm adding a 5% late fee and pausing work on current projects until this is resolved."

Late Fees: Do They Work?

Sometimes. Here's the thing about late fees:

The reality:

State them on your invoice (even if you don't charge them)

They give you leverage

They make clients take due dates seriously

You might not actually charge them to preserve relationships

Typical late fees:

5% after 30 days

1.5% per month (18% annual)

Flat fee ($25-50) for small invoices

The key is to state them upfront. You can always waive them later if there was a genuine mistake.

Multiple Payment Options

The easier you make it to pay, the faster you get paid.

Offer at least two options:

Bank transfer (cheapest for you)

PayPal or similar (convenient for clients)

Credit card (fastest, but fees)

One freelancer put it well: "I used to only accept bank transfers because I didn't want to pay PayPal fees. Then I realized waiting an extra week for payment cost me more than the 3% fee."

Record Keeping (The Boring But Important Part)

Future you will thank present you.

What to track:

Copy of every invoice sent

Date sent

Date paid (or if still unpaid)

Payment method

Any related expenses

Why it matters:

Tax time is way easier

You can see which clients pay on time

You can spot your busy vs. slow months

You can prove income for loans/mortgages

Use whatever system works for you—spreadsheet, invoicing software, or even a paper folder. Just pick something and stick with it.

Red Flags to Watch For

Some clients are more trouble than they're worth.

Warning signs:

They push back on 50% deposit for a new relationship

They want to change terms after agreeing

They're slow to pay the first invoice

They ask for lots of extra work "really quick"

They claim they "usually pay NET 60"

Trust your gut. It's okay to decline projects from difficult clients.

Contracts vs. Invoices

An invoice is not a contract. It's a request for payment.

For anything over $500, you should have:

A contract or statement of work

Scope clearly defined

Payment terms in writing

Revision limits

Deadline

Then the invoice just references the contract: "As per contract dated October 1st..."

The Mindset Shift

Here's something that helped multiple freelancers we talked to:

You're not being difficult by asking for clear payment terms. You're running a business. Professional clients expect professional invoicing.

One freelance developer said: "I used to feel like I was being pushy. Then I realized that companies pay millions in invoices every month. My $1,000 invoice isn't a big deal to them—but it's rent for me."

Quick Tips That Work

Invoice on the same day you finish work

Use invoice software if you send more than 3-4 per month

Follow up on the due date, not a week later

Keep a professional tone, even when frustrated

Thank clients who pay on time

Review your payment terms every 6 months

The Bottom Line

Good invoicing practices are really about respect—for your work, your time, and your business.

Be clear, be consistent, and be professional. Most clients will appreciate it. The ones who don't? They're probably not clients you want anyway.

Ready to streamline your invoicing? Try Invoisseur free—unlimited invoices for paid plans, no complicated setup.