Invoicing Software for Contractors

Everything You Need, Nothing You Don't

What to include on a contractor invoice

On a job that runs for weeks and costs five figures, the invoice is part of your paper trail. These six items keep payments moving and protect you if a client disputes the bill.

1. 1

   License number and project address

   Many states require your contractor license number on invoices and contracts. Add the job site address too, since it often differs from the client's billing address.

2. 2

   Which phase or draw this invoice covers

   Label progress invoices clearly, such as "Draw 2 of 4: rough-in complete." The client and their lender can then match it to the payment schedule in your contract.

3. 3

   Materials and labor on separate lines

   Itemize lumber, fixtures, and finishes apart from labor hours or the labor lump sum. It answers "why did this cost so much" before the client asks.

4. 4

   Change orders as their own lines

   Reference each approved change order by number and date. Extra work that shows up without a matching approval is the most common reason a final payment stalls.

5. 5

   Deposits and payments already received

   Show what has been paid so far and the balance remaining. Clients paying across several draws want to see the running total.

6. 6

   Tax handled the way your state requires

   States treat construction differently. Some tax separately stated materials, others treat the contractor as the end buyer of materials. Check your state's rules and apply tax only to the lines that need it.