What a contractor invoice should show
A homeowner reads a contractor invoice line by line, looking for anything they did not agree to. A property manager forwards it to an accountant who wants clean categories. Both are easier to satisfy when the invoice mirrors the job: what you did, what you bought, and what was already paid.
The sample above already splits the work this way. Change the descriptions and rates to your own, and the totals update as you type.
- Your business details and license number. Many states want the license number on contracts and invoices. Check your state licensing board for the exact rule.
- Job address, if it differs from the billing address. Put it in the notes or in the first line description.
- Labor lines with hours or days, and materials lines with quantities and units (each, sq ft, linear ft, box).
- Markup on materials, built into the unit price or shown openly, as your contract says.
- Permit, dumpster and disposal fees as their own lines, so nobody mistakes them for profit.
- Change orders as separate lines that match the signed change-order form.
- Deposit or progress payments received, shown as a negative line, and the balance due.
- Payment terms and due date. Our guide to Net 30 and other payment terms explains the common choices.
For a full field list that applies to any trade, see what to include on an invoice.
Labor, materials and sales tax: a worked example
Sales tax on contractor work is a state-by-state question. In some states you pay tax when you buy materials and do not charge it again; in others you charge tax on materials but not labor; some tax the full job. The editor lets you set a rate per line, so you can follow whichever rule applies to you. The rates below are editable examples, not market prices.
| Line | Qty | Unit | Rate | Amount |
|---|---|---|---|---|
| Drywall hang and finish, basement | 24 | hour | $65.00 | $1,560.00 |
| 1/2” drywall sheets, 4x8 | 30 | each | $14.50 | $435.00 |
| Joint compound, tape, screws | 1 | lump sum | $68.00 | $68.00 |
| Debris haul-off and disposal | 1 | each | $275.00 | $275.00 |
| Subtotal | $2,338.00 | |||
| Sales tax 7% on materials ($503.00) | $35.21 | |||
| Total | $2,373.21 |
If your state taxes the whole contract, set the same rate on every line instead. If you are unsure, ask your state revenue department or your accountant before you send.
Deposits, progress billing and change orders
Larger jobs rarely end with a single invoice. A common pattern is a deposit at signing, a progress payment at a milestone (rough-in passed, cabinets set) and a final payment at completion. Use the Duplicate action after download to start the next invoice with the same client and items, then edit the quantities.
Deposits are not unlimited everywhere. California, for example, caps the down payment on a home-improvement contract at 10% or $1,000, whichever is less. Other states have their own rules, so check before you ask for money up front.
Change orders cause most billing disputes. Get every change in writing, priced and signed before the extra work begins. Then add it to the invoice as a separate line with the change-order number. If you started from a contractor estimate, keep the estimate and each signed change together.
Lien rights are the other half of the picture. Many states require a preliminary notice early in the job to keep lien rights, and owners often ask for lien waivers with each payment. The forms and deadlines vary by state; your licensing board or a construction attorney can tell you which apply. Bigger commercial jobs with retainage follow the pattern on our construction invoice template.
Sending it and getting paid
Download the PDF on US Letter, then share it from your phone or open a ready e-mail draft and attach the file. Mark the invoice as sent so it shows in My documents. When the check clears, mark it paid and create a receipt from the same data in one tap. Need a signed copy for the homeowner? Make a signature image with the signature generator.
Specialty trades have their own pages: electrical, plumbing and landscaping. If you would rather fill in a blank file offline, the invoice template gallery has Word, Excel and PDF versions.