3 steps to a firm grasp of how to number freelance invoices

Each of these items can be on their own invoice, with their own invoice number. Assigning unique invoice numbers to each of your invoices helps you distinguish one transaction from another and match the payment received to the respective invoices. While there is no simple answer to this question, we recommend the “less is more” philosophy. Imagine if your phone company sent you a separate invoice for every call you made! Keeping up with that many invoices would quickly become overwhelming.

Each company has different policies, requiring invoices to have an invoice number, date, and description. So, when it comes to invoicing numbers on company invoices and get paid faster, they are fully determined by the company that sends invoices. The project number is your last option for referencing your invoices. For example, construction businesses are ideal candidates for employing this method since they manage several projects or have critical project figures. Consistency is essential when constructing a number sequence based on a number pattern.

How to Create an Invoice Number?

These best practices will help you avoid incorrectly numbered invoices and create an invoice number system that will work for your establishment for many years to come. However, QuickBooks and most other accounting software, such as FreshBooks, allow you to customize the numbering system to suit your specific business needs. QuickBooks will assign an invoice number automatically to every invoice you generate, and the default numbering starts at 1001 for the first invoice. The invoice number generation process will be automatic if you have automated your bookkeeping with accounting software like QuickBooks.

From a customer’s perspective, an invoice number is also how they keep track of payments due and payments made in their accounting system. Did you know that you can use Bonsai to generate and send a beautiful custom invoice in just 2 minutes? Using a freelance invoice template can help eliminate errors on your invoices.

All in all, invoice numbers save vendors some headaches, serving as an excellent tool that can be supported by any accounting software and come in handy when creating a new invoice. Accounting software like FreshBooks makes this even easier by making unpaid invoices simple to find. This is a huge relief when your invoice numbers reach double or even triple digits.

Where Do I Find the Invoice Number?

We recommend you increase your invoice number by 5 or 10 with each invoice you send. For example, the first invoice you send would have invoice number 100. If the client has no particular invoice requirements, use the other best practices below to set up your invoice process. If you decide to pursue late fees, it is convenient to reference the invoice number in your communication.

• Start by using a longer number, like 1001, for your first invoice.
• For example, if your first invoice is 1, the second should be 2, and so on.
• It can even help at tax time if you need to find specific invoices.
• That is because every new invoice should have a unique number generated to help sort and identify invoices in an accounting system.
• Now that you have a good idea why invoicing and invoice numbers are important, you’re probably curious about the best ways to assign them.
• An invoice number is a unique number assigned to each of your invoices so that you can identify, organize, and document them.

While it may seem tedious, invoices are one of the most important parts of freelancing. Paying attention to the details that matter to your clients (like an invoice number) makes you look good and helps you get paid on time. If your work largely follows this format, numbering this way can make a lot of sense. It’s useful to group invoices according to the project they are billed to, especially if you’re tracking an overall project budget and need to monitor how much you have already billed.

Essentially, your invoice gives a client all of the information they need in order to pay you. Chronological invoice numbering systems is one of the most effective invoice numbering system options available. Even if you use the best accounting software, you can still have difficulties filing your taxes if you cannot track invoices. It is essential to assign numbers chronologically to keep track of your invoices. That way, you can easily find the invoice you’re looking for and keep them organized by the pattern you use for the first time.

Get your invoices set up right the first time

Tax time is a stressful time for all businesses, so a major goal is to make all operational processes as effective and efficient as possible. This is never more true than when meeting any tax compliance obligations. Having a systemized invoice number structure can help you backtrack and find invoices quickly to clear up any disputes on past work or miscommunication between you and the customer. There are several types of invoices that are used for different purposes, in different industries, and with different legal statuses.

This is the simplest system of all and works well for many freelancers. It largely depends on where you operate, given the difference in invoicing regulations. It’s free to register as a US business for an account, and there’s 24/7 support on hand to guide you through the whole process.

Invoice numbers are consecutive or sequential (i.e., following a logical sequence). The simplest way to use invoice numbers is to choose a starting number like 100 and add 10 to it each time. The first invoice you send would be numbered 100, and the second invoice number would be 110.

Why an invoice number is important

They usually appear near the top of the invoice and (if in digital format) as its file name. For my business, one of the headaches was managing both stocks and expenses. Luckily, I switched to Moon Invoice and found the hassles of stock and expense management getting faded. The date makes up the first part of this number, and the order number, which rises by one with the previous sale, makes up the second part.

Failing to charge tax amounts (e.g., sales tax) is an invoice mistake that some new business owners make. The tax situation may become more complicated if you serve clients in different countries and locations. Sending an incorrect invoice is one of the fastest ways to look foolish in front of clients. That’s not all – an invoice with errors may result in the client refusing to pay you until you send a corrected invoice. That’s why it is helpful to use an invoice checklist when you first get started running your business.

It is also assigned to your invoice to help you avoid duplicate payments. Sequential invoice numbering is the most common method used across industries, where the invoice number increases by one every time a new invoice is issued. For example, you can start numbering the first invoice with 1, followed by 2, 3, 4, and so on for subsequent invoices. Hence, it’s prudent to choose a suitable numbering system that would remain effective as your business expands.

Even if your clients don’t insist on having an invoice number, there is another reason why you should use one. Let’s start with a clarification and process to generate an invoice number. An invoice number is typically located near the top of the invoice, on the right or left side of the page. It is What is an invoice number often accompanied by the date the invoice was issued and the name and contact information of the issuer. For example, Statrys is the 51st client to whom a business has provided work or goods. The business requesting payment uses a sequential system when allocating a representative customer number.

Invoice Number Examples

Types include the proforma invoice, commercial invoice, or final invoice. The invoice number can typically be found on the invoice document itself, usually near the top or the header of the page. It is commonly presented as a unique identification number, often preceded by the word “Invoice,”  “Bill,” “Purchase Order,” or another similar term.

For example, you might be charging an additional fee because the client asked for last-minute emergency services. If so, you may want to add a separate line item for “emergency services request – DATE” (e.g., “Emergency Website Services – October 2”) on the invoice. In summary, increase your invoice number by 5 or 10 each time you send an invoice. An invoice number and date are the most common ways to identify an invoice quickly. If you want to save time on invoice management, using an invoice number is a wise idea. Choose the finest method or software for organizing your bills based on your needs.