Checklist: what to include

Job name + job site address

Labor and materials line items

Change order notes (if applicable)

Payment schedule (deposit/milestones/final)

Payment methods + due date

A filled example you can copy

Sample invoice

Description Qty/Hours Rate Amount
Labor (installation / service work) 8 $95.00 $760.00
Materials (parts / supplies) 1 $240.00 $240.00

Frequently asked questions

How do contractors format invoices?

Many contractors break invoices into labor and materials, include job details (address/PO), list dates, and specify a payment schedule. Clear descriptions reduce disputes.

Should I list materials markup on an invoice?

If you mark up materials, it’s often simplest to list the line item total that includes markup rather than exposing raw cost. Keep it consistent with your contract terms.

What payment terms do contractors use?

Common terms include deposits (e.g., 30–50%), milestone payments, and final payment on completion. For commercial clients, Net 30 is common.