ToolbeltDocsThe contractor invoice checklist
Use this table to check any invoice before you send it. Every row answers a question the customer — or their bookkeeper — will otherwise ask you.
| What to include | Why it matters | Example |
|---|---|---|
| Your business name, logo and contact details | Shows who is billing and how to reach you | Martinez Home Repair LLC, phone, email, address |
| License number (if required) | Some states and cities require it on contractor paperwork | License #: CR-12345 |
| Invoice number | A unique number for tracking and matching payments | INV-0012 |
| Invoice date and due date | When you billed and when payment is due | Nov 3, 2026 · due Dec 3, 2026 |
| Payment terms | The rule for the due date | Net 30 |
| Bill-to and job address | Who pays, and where the work was done | Jordan Lee · 45 Oak Ave (rear bedroom) |
| Estimate, PO or contract reference | Lets the customer match the bill to what they approved | Estimate EST-0007, PO 4471 |
| Itemized labor and materials | Shows exactly what is being charged | 6 hr labor @ $65 · 4 sheets drywall @ $18.50 |
| Change orders | Explains differences from the estimate | Change order #1 – replace shutoff valve |
| Subtotal, discount, tax and total | Each step of the math, so it can be checked | Subtotal · Tax (6.25%) · Total |
| Deposit paid and balance due | Credits money already received | Deposit paid (25%) · Balance due |
| How to pay | Removes every excuse for paying late | Check payable to…, bank transfer, payment link |
Payment terms: what Net 30 and "due on receipt" mean
Payment terms set when the invoice must be paid. Net 30 means the full amount is due 30 days after the invoice date; Net 15 and Net 60 work the same way. Due on receipt means payment is expected as soon as the customer gets the invoice. Always print the actual due date as well, so nobody has to count days.
Use the same terms you agreed in the estimate or contract. If you expect payment on completion for residential jobs, say so in the estimate before the work starts.
How to show deposits and progress payments
A deposit is money the customer paid up front. On the final invoice, show the full total, subtract the deposit already paid, and show the balance due — that way the invoice still tells the whole story of the job.
For larger projects billed in stages, send a progress invoice for each milestone, list the stage being billed, and reference the original estimate or contract so the customer can track what's been paid. The job estimate template can be converted into an invoice with one click, which keeps the line items consistent from estimate to final bill.
Contractor invoice example
Example only Here is a filled-in example for replacing a bathroom vanity and faucet, including a small change order approved during the job to replace a corroded shutoff valve. The customer paid a 25% deposit when the job was booked. The prices are made up for illustration only — your rates, material costs and tax rules will differ.
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Labor – remove old vanity, install new vanity and faucet | 5 hr | $70.00 | $350.00 |
| Vanity cabinet with top, 36 in. | 1 ea | $389.00 | $389.00 |
| Single-handle bathroom faucet | 1 ea | $129.00 | $129.00 |
| Supply lines, drain parts and sealant | 1 lot | $36.50 | $36.50 |
| Change order #1 – replace corroded shutoff valve (labor and part) | 1 job | $95.00 | $95.00 |
| Haul away and dispose of old vanity | 1 job | $40.00 | $40.00 |
| Subtotal | $1,039.50 | ||
| Sales tax (0%) | $0.00 | ||
| Total | $1,039.50 | ||
| Deposit paid (25%) | $259.88 | ||
| Balance due | $779.62 | ||
Change orders on the final invoice
A change order is a written agreement to change the scope or price after the original estimate was approved. List each approved change order as its own line on the invoice, with its number and a short description. Customers rarely argue with a higher total when they can see the change they signed.
Different kinds of contractor invoices
- Trade contractors billing homeowners or businesses for a job: use the contractor invoice template.
- Freelancers and self-employed contractors billing hours or project fees to a client: the independent contractor invoice template adds service periods and contract references.
- If you work in Google Docs, the invoice template for Google Docs explains how to open, edit and share the file in Drive.
Before you hit send
- Check the invoice number hasn't been used before.
- Check the math, especially after any edits.
- Make sure the due date and payment details are on it.
- Save it as a PDF and name the file with the invoice number and customer.
- Note the due date in your calendar so you can follow up on time.
Tax rules and contractor requirements vary by state. Check with your state's department of revenue about sales tax, and your state contractor licensing board about anything your invoices must show.
Frequently asked questions
What makes a contractor invoice legally valid?
Invoice rules depend on where you work and the type of work, and some states have specific requirements for contractors, especially for home improvement. The safest approach is to include everything in this checklist, follow your contract, and check your state contractor licensing board for any local rules.
Can I charge a late fee on a contractor invoice?
Only if your contract or agreed terms allow it, and within the limits of your state law. If you charge one, state the fee and when it applies in your terms before the job, not for the first time on the invoice.
What is retainage on a construction invoice?
Retainage is a percentage of each progress payment that the customer holds back until the project is complete, as agreed in the contract. If your contract has retainage, show the amount retained and the net amount due on each invoice.
Should I send an invoice as a PDF or a Word file?
Send a PDF. It looks the same on every device and the customer can't change it. Keep a Word or Excel version for your own records if you like to edit invoices later.