Contractor Invoice Template

• The word "INVOICE" and a unique invoice number
• Your business name, contact info, and tax ID (EIN/GST/VAT)
• The client's name and job address
• Invoice date and payment due date
• A plain-language description of the completed work
• Itemized labor vs. materials with quantities and prices
• Subtotal, tax, and total due
• Any deposit already paid and the remaining balance
• Clear payment terms and accepted payment methods

An estimate is a proposal before the work; an invoice is the bill after it. The invoice should reference the original estimate or change orders, reflect any deposits already paid, and state a firm due date. The clearer the payment terms, the faster you get paid.

Missing a tax identifier or vague payment terms are the two biggest reasons invoices get questioned or delayed. Spell out the tax collected, the exact amount due, and when it's due — for example "Net 15" or "due on receipt" — plus how to pay.

INVOICE #1042 — July 10, 2026
From: Liddell Contracting — EIN 00-0000000
For: John Smith, 14 Oak St.
Work completed: Replaced 220 sq ft of rear deck boards and railing.

Materials (pressure-treated lumber, fasteners): $1,150
Labor (16 hrs @ $65): $1,040
Dump/haul-away: $120
Subtotal: $2,310
Tax (7%): $161.70
Total: $2,471.70
Less deposit paid: -$1,235.85
Balance due: $1,235.85

Terms: Net 15 (due July 25). Pay by check, card, or bank transfer.

The invoices that get paid fastest are the ones that arrive while the job is fresh in the client's mind. Contractor's Secretary turns a few details into a clean, professional invoice you can text on the spot.

Send the contractor invoice the day the work is finished, or at each payment milestone in your contract. Every day you wait is a day the job drifts out of the client's mind. On longer projects, progress invoices — for example after demolition, rough-in, and completion — keep cash coming in so you aren't paying for materials out of pocket.

• Due on receipt — best for small jobs and repeat homeowners.
• Net 7 or Net 15 — the bill is due 7 or 15 days after the invoice date.
• Net 30 — common with commercial clients and property managers, but slow for small businesses.
• Progress billing — a set percentage due at each stage of a bigger project.

Whichever invoice payment term you choose, write the actual due date ("due July 25") as well as the term. Many people don't know what "Net 15" means, but everyone understands a date.

• No invoice number, so the client's records and yours don't match.
• Vague descriptions like "labor — $1,040" with no hours or rate.
• Forgetting to subtract the deposit, which makes the client think they're being double billed.
• No easy way to pay — list every method you accept, and include a payment link if you have one.
• Sending it to the wrong person — on rentals and commercial work, confirm who actually pays.

Do I have to charge sales tax? Sales tax on contractor invoices depends on your state and the type of work. Rules on taxing labor versus materials vary widely, so check with your state's tax agency or an accountant rather than guessing.

Can I add a late fee? Add a late fee to a contractor invoice only if the fee was in your agreed terms before the work started. Adding one after the fact causes disputes. State the fee in your estimate or contract and repeat it on the invoice.

What if the client disputes a line? Respond to a disputed contractor invoice line quickly and in writing. Point to the estimate or signed change order for that item. If one line is genuinely wrong, correct it and send a revised invoice so the rest gets paid.

How long should I keep invoices? Keep copies of contractor invoices for at least as long as your tax advisor recommends — several years is typical — since they back up both your income and any collection effort.

On a larger job, a progress invoice looks like the example above but references the milestone: "Progress Invoice #1042-2 — Rough-in complete. Payment 2 of 3: $4,000. Paid to date: $6,000. Remaining after this payment: $4,000." Showing what's been paid and what's left keeps everyone on the same page and prevents surprises at the end.

Before sending a contractor invoice, confirm the invoice number, dates, total, deposit credit, and payment methods:

• Invoice number and date are filled in.
• The total matches the estimate plus signed change orders.
• The deposit is subtracted and the balance is clear.
• The due date is a real calendar date.
• Payment methods are listed.