How to Send an Invoice in Australia (That Actually Gets Paid)

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Getting paid starts long before you hit ‘send’ on an invoice. If you want your money to land in your bank account without any fuss, you need to make sure the invoice itself is spot on. A good invoice isn't just a bill; it's a professional document that makes it easy for your clients to pay you and keeps you on the right side of the Australian Taxation Office (ATO).

Nailing this part saves you from those painful back-and-forth emails that only delay you getting the cash you've earned. Let's break down exactly how do you send an invoice the right way.

What Every Aussie Invoice Absolutely Needs to Include

Think of your invoice as the final handshake on a job well done. It needs to be clear, correct, and have a few key details to be considered a legal document in Australia. Without these, you risk looking amateur and creating bookkeeping headaches for both you and your client.

Let’s run through the must-haves.

The Non-Negotiables

Every single invoice you send should have these bits of info front and centre. This is the basic stuff that identifies you, your client, and the job itself.

Your Business Details: This includes your business name (or your name if you’re a sole trader), your address, and your Australian Business Number (ABN). Your ABN is critical—it’s how the government and other businesses know who you are.

Your Client’s Details: Clearly state the client's name and address. If you're dealing with a bigger company, it helps to include the specific person or department to make sure it lands in the right inbox.

A Unique Invoice Number: Each invoice needs its own unique number (e.g., #001, #002, #003). This is vital for your own records and makes it easy to refer to if you ever need to follow up.

The Date: Simply pop on the date you issued the invoice.

Tax Invoice vs. Regular Invoice

Here's where a lot of Aussie sole traders and small businesses get a bit tangled up. According to the ATO, if you are registered for GST, you must issue what's called a 'Tax Invoice'.

A Tax Invoice has to clearly state that it is a 'Tax Invoice', show the GST amount (or state that the total price includes GST), and list your ABN. If you're not registered for GST, you just issue a standard 'Invoice' and shouldn't mention GST at all.

This is a huge deal for compliance. Charging GST when you're not registered is a big no-no, and failing to provide a proper tax invoice when you are can cause headaches for your clients when they try to claim their GST credits.

Your invoice is more than just a bill; it's a reflection of your professionalism. But more importantly, it’s a record of the value you delivered. This is why understanding your numbers is so crucial. Before you even create the invoice, knowing your job profitability ensures the final amount truly reflects a healthy return for your hard work.

How Do You Send an Invoice? Choosing Your Tools

Alright, you’ve got all the essential details sorted. Now for the practical part: how do you actually create and send the thing?

The method you choose has a massive impact on how much time you spend on admin versus actually earning money. Let’s break down the main options, from simple and free to powerful and automated.

The Manual Method: Fiddling with Templates

When you're just starting out, creating invoices by hand is a perfectly fine way to go. Using a program you already have, like Microsoft Word or Google Docs, is a no-cost option that gets the job done.

You can find heaps of free templates online, fill in the details for each job, save it as a PDF, and attach it to an email. It’s simple, familiar, and doesn’t require learning any new software.

But the manual approach has its limits. As you get busier, you’ll find yourself:

Manually tracking invoice numbers, which can lead to messy duplicates or gaps in your records.

Forgetting which invoices are paid and which are still outstanding.

Wasting precious time copying and pasting details for every new client.

This is the point where proper software starts to look like a brilliant idea.

The Smart Move: Using Dedicated Invoicing Software

This is the logical next step for most sole traders and small businesses. Platforms like Xero, MYOB, or Wave are built for this stuff, taking the guesswork out of invoicing and automating most of the process.

With good software, you can:

Create professional, branded invoices in seconds.

Set up recurring invoices for your regular clients.

Automatically track payments and send reminders for overdue bills.

Even see who has opened your invoice email (a game-changer!).

The biggest win here is the time you get back and the professional image you project. While most have a monthly fee, the efficiency you gain often pays for itself many times over.

This is where knowing your numbers is key. A tool like the Profit Calculator helps you price your services properly, making sure you can easily cover small business overheads like accounting software.

The Future-Proof Option: e-Invoicing

There's a newer method getting serious traction in Australia called e-invoicing. This isn't just sending a PDF via email; it's a standardised way for different accounting systems to talk directly to each other through a secure network called Peppol, which is backed by the ATO.

E-invoicing helps slash errors from someone typing in the wrong details and can significantly speed up payment times because the invoice lands directly in your client's accounting software, ready for them to approve.

The growth here is pretty impressive. The Aussie e-invoicing market is expected to skyrocket to over USD 1.8 billion by 2033, which shows just how many businesses are shifting this way.

So, which one is right for you? It depends on your scale, your patience for admin, and how professional you want to look.

Here’s a quick comparison to help you choose the best way to send your invoices.

Method	Best For	Pros	Cons
Manual (Email & PDF)	Brand new businesses or those with very few clients.	Free to start; uses familiar software like Word or Google Docs.	Time-consuming; high risk of errors; looks less professional.
Invoicing Software	Most sole traders and growing service businesses.	Automates tracking, reminders, and recurring bills; looks pro.	Monthly subscription fee; requires a bit of setup.
e-Invoicing	Businesses dealing with government or large corporate clients.	Super fast and secure; reduces data entry errors; ATO-backed.	Both you and your client need compatible software; still emerging.

Ultimately, the best method gets you paid on time with the least amount of mucking around. Starting manually is fine, but as your business grows, investing in software will save you countless hours and headaches.

Writing an Invoice Email That Actually Gets Opened

The invoice PDF has all the details, but it's the email you write that gets it opened and actioned. A vague subject line or a confusing message is a one-way ticket to your client’s “I’ll deal with this later” pile, which is exactly where you don't want to be.

Put yourself in their shoes. They could be a busy business owner juggling a dozen things or an accounts person processing stacks of invoices. Your job is to make their life easier. Clear, direct communication is what gets your invoice paid without needing a single follow-up.

Nail the Subject Line

This is the most critical part of the email. It needs to be instantly recognisable and easy for your client (or their accounts team) to search for later. Just writing "Invoice" is a classic rookie error.

Instead, create a clear, consistent format you use every single time.

Good: Invoice #123 from [Your Business Name]

Better: Invoice #123 for Website Design Services

Best: [Your Business Name] | Invoice #123 | Project: New Website

That simple tweak makes you look organised and helps your client’s finance team know exactly what the email is about before they even open it.

Keep the Email Body Short and Sweet

Nobody has time to read an essay, especially when they're about to pay a bill. Your email body should be friendly but get straight to the point, giving them all the key info at a glance.

Here’s a simple structure you can borrow:

A friendly opening: "G'day [Client Name],"

The main point: "Please find attached Invoice #[Invoice Number] for the recent [Service/Project] we completed."

The key details: State the total amount and the due date clearly. For example: "The total amount due is $1,250.00, with payment due by [Date]."

How to pay: Briefly remind them of their options. "You can pay via the bank details on the invoice or through the secure link."

A polite closing: "Thanks again for the business. Please let me know if you have any questions."

Your goal is to remove any friction. By putting the total and due date directly in the email, you save your client a click and make it far more likely they’ll action it straight away.

Sending a clear, professional email shows you respect your client's time. It's a small detail, but it reinforces the quality of your work and is a crucial part of knowing how do you send an invoice that gets paid on time.

Setting Clear Payment Terms to Protect Your Cash Flow

Getting paid on time isn't about luck; it’s about setting crystal-clear expectations before you even start the job. Your payment terms are the ground rules for your business's financial health, and they need to be simple, firm, and agreed upon from the very beginning.

Vague terms like "payment upon completion" are a recipe for disaster. Does that mean the same day? The same week? A month later? This ambiguity is where cash flow grinds to a halt. You have to be specific.

Decoding Common Payment Terms

You've probably seen phrases like 'Net 7' or 'Net 30' on invoices. They might sound a bit corporate, but it's dead simple: it’s the number of days the client has to pay you in full from the invoice date.

For Aussie service businesses, these are the most common options:

Due on Receipt: This means you expect payment the moment they get the invoice. It works well for smaller, one-off jobs, but it can feel a bit abrupt for some clients.

Net 7: Payment is due within 7 days. This is a fantastic default for most sole traders. It keeps cash moving quickly while giving clients a reasonable window to sort out their admin.

Net 14 / Net 30: Payment is due in 14 or 30 days. You’ll often find these longer terms are standard when you're dealing with larger companies that have rigid payment cycles. Just be sure your business can handle waiting that long for the cash.

Unfortunately, many big businesses are notorious for paying their smaller suppliers slowly. A government report found the average payment time for small business invoices is 32 days, with some left waiting as long as 60 days. It's worth checking the latest Payment Times Reporting Scheme data to see how this trend might affect you.

Smart Strategies to Protect Yourself

Slapping a due date on your invoice isn't always enough, especially for bigger projects that lock up your time and resources for weeks or even months.

A powerful way to protect your cash flow is to require an upfront deposit. Asking for 30-50% before work begins is a completely standard and professional practice. It secures the client's commitment and gives you the funds to cover any initial costs without dipping into your own savings.

But here’s the most critical part: your payment terms are meaningless if your pricing is broken in the first place. If you haven't properly calculated all your hidden costs most sole traders forget and overheads, getting paid 'on time' could still mean you're not actually making a profit. Your terms must be built on a foundation of profitable pricing.

This is exactly why knowing your numbers is non-negotiable. Before you send that invoice, you need absolute certainty that the final figure actually supports a healthy business.

👉 Ready to improve your profitability? Try the Profit Calculator free at profitcalculator.com.au

The Gentle Art of Chasing Unpaid Invoices

It’s the one chat every business owner dreads. You’ve done great work, sent a professional invoice, and the due date has drifted by in complete silence. Now what?

Chasing money always feels awkward, but it's a non-negotiable part of running a healthy business.

The secret is to have a simple, repeatable process. This isn’t about being aggressive; it’s about being professionally persistent. You need a plan that starts gently and escalates logically, protecting both your cash flow and your client relationship.

Your Follow-Up Timeline

Don’t jump straight to the worst-case scenario. Most late payments are simple oversights, not deliberate attempts to dodge you. The person might be on holiday, or your email just got buried. A calm, structured approach always works best.

Here’s a simple sequence you can follow:

Day 2 Past Due — The Nudge: Send a friendly, polite email. The goal here is just to bring your invoice back to the top of their inbox. Assume it was an honest mistake.

Day 7 Past Due — The Reminder: If you still haven’t heard anything, send another email. This one can be a bit more direct but still friendly. Mention the original invoice number and date.

Day 14 Past Due — The Phone Call: Email isn’t working, so it’s time to pick up the phone. It’s much harder to ignore a friendly voice than another email. A quick call can often sort out any issues in minutes.

Day 30+ Past Due — The Formal Notice: If calls and emails are met with silence, it’s time to send a more formal letter or email. This message should clearly state the overdue amount and warn that further action may be taken.

The key is consistency. Don't let an invoice sit for weeks before you act. A prompt follow-up shows you're serious about your finances and sets a professional standard for future work.

Scripts You Can Use Today

Knowing what to say makes the whole process less stressful. Feel free to pinch and adapt these simple templates for your own business.

Email Template: The Nudge (2 Days Late)

Subject: Just a friendly follow-up on Invoice #123

Phone Call Script: The Check-In (14 Days Late)

This approach is non-confrontational and opens the door for them to explain what's going on.

Always keep a record of your calls and emails—what you said and when. This documentation is crucial if you ever need to escalate things. Automating these follow-ups is one of the key reasons to upgrade to professional invoicing software, as it saves you from having to manually track every late payment.

Why Your Invoice Is a Report Card for Your Business

Sending an invoice might feel like the finish line, but it’s actually a moment of truth for your business. It's so much more than a request for money; think of it as a final report card on your profitability.

Each invoice is the result of your pricing strategy, your time tracking, and every material you bought for the job. If that final number doesn't properly cover all your hidden business costs, pay you a decent wage, and leave a healthy profit margin, then you're just working hard—not smart.

Shifting Your Invoicing Mindset

Thinking of invoicing as a business health check changes everything. It stops being a chore and starts being a powerful, regular review of your financial position. This perspective is vital when you're figuring out how do you send an invoice that actually builds a sustainable business, not just one that covers this week's bills.

Of course, getting the invoice right is only half the battle. Your process for chasing up late payments needs to be just as methodical, often following a simple timeline of reminders and calls.

This kind of simple, repeatable workflow is key. It helps you manage payments efficiently while keeping your client relationships positive and professional.

This shift towards smarter invoicing isn't just a nice idea—it has huge economic benefits. Research shows that full e-invoicing adoption in Australia could unlock over A$22.5 billion in annual economic gains through pure efficiency. You can read the full research on the benefits of e-invoicing to see the bigger picture.

This is where a tool like Profit Calculator becomes absolutely essential. By working out your true Effective Hourly Rate (EHR), you make sure the price on every single invoice you send is a profitable one.

Common Invoicing Questions from Aussie Sole Traders

We get it. You’re busy doing the actual work for your clients. Navigating the admin side of things can feel like a massive pain, but getting your invoicing right is non-negotiable.

Here are some quick, no-fluff answers to the questions we hear all the time from Aussie business owners just like you.

Do I Have to Include GST on My Invoice?

This is a big one, and getting it wrong can cause major headaches with the ATO.

The rule is pretty clear: you only need to register for and charge GST if your business has a GST turnover of $75,000 or more per year.

If you are registered, you must issue a 'Tax Invoice' that clearly shows the 10% GST amount. If you're not registered, you just issue a standard 'Invoice' and must not mention or charge GST at all. It’s crucial to know exactly where you stand on this.

What Is the Best Way to Accept Payments?

The golden rule here is to make it dead simple for your clients to pay you. Don’t create any barriers. Offering a few convenient options is always the best approach.

Direct Bank Transfer (EFT): This is the most common, fee-free choice for many service businesses. It’s reliable and costs you nothing.

Online Gateways: Services like Stripe or PayPal let clients pay instantly with a credit card. It's super convenient for them, but just remember they charge you processing fees.

A quick tip: make sure you account for those payment gateway fees in your pricing. If you're not sure how they're impacting your bottom line, it's a good idea to chat with a professional. Many bookkeepers and accountants now offer specialised advisory services for trades and service businesses to help you get this right.

Can I Charge a Fee for Late Payments?

Yes, you can—but you can't just spring it on a client after the fact.

The right to charge a late fee must be clearly stated in your initial contract or terms of service that the client agreed to before you even started the work.

A common and fair practice is to include a clause like, "A late payment fee of 2% per month applies to overdue balances." This sets the expectation upfront and gives you a leg to stand on if you need it.

👉 Want to know your real hourly rate? Use the Profit Calculator at profitcalculator.com.au