How to Create an Invoice Online: A Step-by-Step Guide for Beginners

You have finished the work, delivered the project, and the client is happy. Now comes the most important part of running a business: getting paid. If you are new to freelancing or small business management, you might be asking yourself, “How do I create my invoice so it looks professional and gets paid quickly?” Whether you want to write an invoice online using a dedicated tool or stick to a manual document, there are specific standards you need to follow.

In this guide, we will walk you through exactly how to create an invoice online, what information you legally need to include, and the best methods for sending them.

💡 Still confused about the difference between a bill and a pitch? Read our guide on Invoices vs. Proposals first!

The “Must-Have” Checklist: What Goes on an Invoice?

Before you open a program to create invoices, you need to know what data is required. An invoice isn’t just a polite request for money; it is a legal accounting document.

To ensure you get paid without administrative delays, every invoice should include:

• The Word “Invoice”: It sounds obvious, but it must be clearly labeled.

• A Unique Invoice Number: Essential for tracking.

• Date of Issue: The day you sent the bill.

• Provider Information: Your name, company name, address, and contact info.

• Client Information: Their name and address.

• Description of Services andProducts: A clear breakdown of what you are billing for.

• The Amounts: Unit costs, subtotal, any taxes (VAT/Sales Tax), and the Grand Total.

• Payment Terms: When is the payment due? (e.g., “Due on Receipt” or “Net 30”).

Manual Docs vs. Online Tools

There are two main ways to approach this.

The Manual Way (Word or Excel)

Many beginners start by downloading a template for Microsoft Word or Excel. You manually type in the data, save it as a PDF, and email it.

• Pros: It’s free and you likely already have the software.

• Cons: It is prone to human error. It is easy to accidentally duplicate invoice numbers, mess up formula calculations in Excel, or forget to update the date. Plus, tracking who has paid requires a separate spreadsheet.

The Automated Way (Online Software)

The more professional route is to make an invoice online using cloud-based software.

• Pros: Calculations are automatic. The system remembers your clients, tracks who has opened the email, and can even send automatic reminders if they forget to pay.

• Cons: Some platforms have a monthly fee (though the time saved usually pays for it).

Step-by-Step: How to Create an Invoice Online

Ready to get paid? Here is the standard workflow when using modern invoicing software.

Step 1: Input Your Business Details

You usually only have to do this once. Upload your logo, add your tax ID number, and set your currency. Branding matters and an invoice with a logo looks significantly more trustworthy than a plain text document.

Step 2: Add the Client

Enter your client’s email and billing address. Most programs to create invoices will save this profile, so the next time you bill them, it’s just a single click.

Step 3: Add Line Items

Be specific here. Instead of writing “Consulting,” write “Web Design Services – Phase 1.”

💡 Tip: If you charge by the hour, ensure your quantity (hours) and rate are clearly visible. If you create an invoice online, the math (Quantity x Rate) is done for you automatically, reducing rejection risks.

Step 4: Define Payment Terms and Notes

How do you want to get paid? Bank transfer? Credit card? Stripe? Make the instructions impossible to miss.

• Example: “Please send payment via Bank Transfer to [Account Details] within 14 days.” You can also add a “Thank You” note here to leave a lasting positive impression.

Step 5: Review and Send

Hit the button to generate the invoice. Most tools will email the invoice directly to the client on your behalf, allowing you to see exactly when they viewed it.

The Pro Way: Connect Your Proposal to Your Invoice

If you are typing out invoices manually after a client has already signed a contract, you are doing double the data entry.

The most efficient workflow is to use a platform like Proposaly.

With Proposaly, the detailed line items and pricing you built during the proposal phase don’t disappear. Once your client digitally signs the proposal, all that data is ready to go. You don’t need to open a separate program to create invoices and copy-paste the numbers.

By integrating your signed proposals directly with your invoicing or accounting tools, you reduce errors and speed up your cash flow. You move seamlessly from “Signed” to “Paid.”

✌️ Ready to streamline your billing? Start winning with Proposaly today and look professional from the first pitch to the final payment.