Put hours in Qty on Hours lines. When tax is set to products only, just the Product lines are taxed.
Saved only in this browser, never uploaded. The lines you see are an example month of work; replace them with your own.
An electronic invoice is a bill created, sent and stored digitally instead of on paper. To make one, add your business and client details, an invoice number no other bill shares, the dates it was issued and is due, and each service or product with quantity and price. The invoice then shows the subtotal, discount, any tax, the total and the balance due, plus payment terms and a payment link. Save it as a PDF, email it to the client, and keep a digital copy with your tax records.
How the electronic invoice total is worked out
Each line in the electronic invoice generator is multiplied out and added up; then the discount comes off, tax lands only on taxable lines, and payments already received are removed.
| Meaning | Worked out as | |
|---|---|---|
| Line amount | A single charge: a service, billed hours, a product sold or an expense passed on | Quantity times unit price; on Hours lines, hours times rate |
| Subtotal | Everything billed before any discount or tax, also split by line type | Sum of all line amounts |
| Discount | A flat amount taken off the whole invoice | Shared out across the lines by their size, so taxed lines carry their part |
| Tax | Sales tax on products only, on every line, or switched off | Tax % × taxed lines, reduced by their share of the discount |
| Balance due | Money still outstanding from the client | Subtotal minus discount + tax minus amount paid |
Worked example: one month of website care for a client, no sales tax, part paid in advance
How to use this electronic invoice template
Fill in four tabs. The invoice on the right changes as you type, which lets you proofread it before it reaches an inbox.
- Enter your business details: business name, address, phone, the email clients should reply to, plus any tax or registration ID. Logos are optional and never leave your computer.
- Enter the client and delivery details: the client, their company and billing address, the email the invoice will go to and an accounts payable copy. Larger clients often will not pay without their PO number, so add it here along with any IRN, e invoice reference or digital signature ID their system needs.
- List services or products.
- Add totals and taxes: mark which lines are taxed, enter a discount and anything already paid. Subtotals, tax and balance due work themselves out.
- Paste a payment link: a link from your card or ACH processor prints on the invoice, so the client can pay from the same email that delivered it.
- Download your invoice in PDF format: press Download PDF, choose Save as PDF, and attach the file to your email. Only the invoice is printed, on one page.
What an electronic invoice template should include
Everything a paper bill needs, plus the details that let a digital copy be matched, paid and filed without anyone picking up the phone.
| Section | Details to add |
|---|---|
| Business details | Your company or freelancer name, logo, address, phone, billing email and any tax or registration ID. |
| Client details | Client name, company, billing address and the inbox the invoice is sent to. |
| Invoice details | A sequential invoice number, issue and due dates, plus the billing currency. |
| E invoice metadata | Any IRN or e invoice reference and digital signature ID the client's system or local rules require. |
| Service or product breakdown | Each service performed or product sold, with quantity and rate. |
| Labor charges | Hours worked and the hourly rate, or a flat fee for the piece of work. |
| Taxes and totals | Subtotal, discount, any tax that applies, the total, payments in and what is left to pay. |
| Payment terms | The day payment is due, methods you accept, a pay link and any late policy agreed in advance. |
| Notes or references | Project IDs, PO numbers, the billing period or a thank you line. |
Why do e invoices matter for contractors and businesses?
The invoice is how you get paid, but it is also a business record. A digital one does both jobs with less chasing.
- Faster payment cyclesAn emailed invoice lands the same day the work wraps up, and a payment link lets the client settle it in a couple of clicks.
- Improved accuracyTotals are calculated, not typed.
- Organized recordkeepingDigital copies can be searched by client, number or date. That matters at tax time, because invoices are one of the documents that back up the income you report.
- Professional credibilityA branded layout that looks the same every month signals a business that has its paperwork in order.
- Easier matchingPO numbers and references let a client's accounts payable team match your bill to an approved order quickly.
How long should you keep electronic invoices?
The IRS applies the same rules to digital records as it does to paper ones. Electronic storage has to be able to index, store, preserve, retrieve and reproduce the records in a legible format.
| How long | When it applies |
|---|---|
| 3 years | The general rule, when none of the longer periods below apply. |
| 4 years | Employment tax records, counted from the date the tax is due or paid, whichever is later. |
| 6 years | When income that should have been reported was left off and it is more than 25% of the gross income shown on the return. |
| 7 years | When you claim a loss from worthless securities or a bad debt deduction, for example writing off an invoice that never got paid. |
Keep both the PDF you sent and a record of payment. A bank or processor export alongside the invoice folder makes any later question quick to answer.
Why use an electronic invoice template, and how to send it
Handwritten or retyped bills are slow and easy to get wrong. A template plus email keeps every invoice consistent and in the client's inbox within minutes.
| Step | What to do | Why it helps |
|---|---|---|
| Save time | Let the template handle layout and totals | No formatting from scratch each month |
| Reduce disputes | Itemize each service, product and expense | The client can see what every dollar paid for |
| Send a PDF | Attach the file, name it with the invoice number | Looks identical on any device and is hard to edit by accident |
| Write a clear subject | Invoice number, amount and due date in the subject line | Easy to find in a busy accounts inbox |
| Link to pay | Paste a card or ACH payment link | Removes the step between reading and paying |
| Keep records | File the sent PDF by year and client | Ready for taxes, compliance and audits |
Electronic invoice vs digital receipt vs structured e invoice
The words overlap, but the documents do different jobs.
| Document | Sent when | Purpose |
|---|---|---|
| Electronic invoice (PDF) | After the work or sale | Asks the client to pay by a due date, sent by email or a portal. |
| Structured e invoice | Where a client system or a government scheme requires it | Data in a set machine readable format, often with a reference number such as an IRN, that software reads without retyping. |
| Digital receipt | After payment arrives | Confirms that the money has been received. |
Industry specific tips for electronic invoicing
Whatever you sell, a few habits keep digital billing tidy and audit ready.
- Use digital invoice numbersKeep them sequential with no gaps, so a missing invoice stands out at once.
- Integrate with payment systemsInclude a link or clear online payment instructions.
- Add client referencesPO numbers or project IDs speed up approval inside larger companies, where an invoice without one can sit in a queue for weeks.
- Keep backupsStore invoices securely in the cloud for accounting and audits, with a second copy somewhere else.
- Send from one addressA single billing email builds trust and makes replies easy to track.
Sending invoices is the easy part. Catching the call that turns into one is harder.
New clients usually phone first, and if that call rings out while you are busy with someone else, they try the next name in their search results. ServiceAgent answers every call for your business, finds out what the caller needs and books them into your calendar, so there is real work behind the next invoice you email.
Book a free demoFrequently asked questions
Straight answers on e invoices, records and this generator.
Book a free demoWhat should an electronic invoice include?
Your business and client details, a one off invoice number, dates of issue and payment, each service or product with quantity and price, the subtotal, discount, tax, total and balance due, payment terms and a payment link. Add a PO number or e invoice reference when the client asks for one.
Why use electronic invoices instead of paper invoices?
They arrive the moment you send them, the math is done for you and every copy is searchable later. Postage, printing and retyping disappear too.
What's the difference between an electronic invoice and a digital receipt?
The invoice asks for money that is owed. A receipt follows later, confirming payment arrived.
How do I format an electronic invoice correctly?
Put your business name and invoice number up top, client details and references beneath, then itemized lines, then totals on the right with the balance due made obvious. Finish with payment terms and the payment link, and save it as a PDF.
How does an electronic invoice generator work?
You type your details and line items into the form, and the electronic invoice generator works out the subtotal, discount, tax and balance due as you go. Download PDF then saves the finished invoice to send.
Can freelancers use electronic invoice templates?
Yes. Freelancers get the same numbered, itemized layout as a larger firm, with Hours lines for time billing and a payment link so clients can pay by card or ACH.
Are electronic invoices legally valid?
A digital invoice serves the same purpose as a paper one. For US taxes, the IRS applies the same requirements to electronic records as to hard copies, provided they can be stored, retrieved and reproduced legibly. Some countries and some large buyers require a structured e invoice format, so check what yours expect.
Why are electronic invoices important for businesses?
They shorten the time to payment, cut errors and leave a clean digital trail for bookkeeping, taxes and audits.
What is an IRN or e invoice reference?
A reference number some e invoicing systems assign to an invoice once it is registered, so the buyer and the tax system can match it. If your client or your country's scheme gives you one, enter it on the Client and delivery tab and it prints on the invoice.
How long should I keep electronic invoices?
Generally 3 years under IRS rules, 4 years for employment tax records, 6 years if more than 25% of gross income went unreported, and 7 years if you claim a bad debt deduction or a loss from worthless securities.
Does the generator upload my invoice data?
No. The draft stays in this browser so it is waiting next time, and the logo is processed locally. Press Reset to wipe the draft.
Leads growth and product marketing for ServiceAgent at SaaS Labs, where he has worked in product marketing since 2020. Writes ServiceAgent's coverage of AI call answering, CRM and home services operations.
Published by ServiceAgent, the AI front office for home service teams. This template is a general billing tool, not tax or legal advice. Record keeping, sales tax and e invoicing rules vary by country, state and client, so confirm yours with your tax authority or an accountant.