Invoice requirements in the USA: What to include and best practices

Small businesses like independent contractors must comply with certain tax requirements when issuing invoices. So knowing how to invoice in the US could help you avoid legal issues and ensure smooth payments.

In this article, we'll explain everything you need to know to have good invoicing, issue them correctly, and how tools like Invoice Fly can help you automate the entire process.

Requirements for invoicing in the United States

For an invoice to be valid in the US, it must comply with certain basic requirements that guarantee its legality and acceptance by clients and tax entities.

Issuer and recipient information

Each invoice must clearly detail who issues it and who receives it. This includes the name or company name and address of both parties.

Invoice date and number

Indicating the date on which the invoice is generated helps to keep accounting control and define payment terms. Additionally, each invoice must have a unique ID number to facilitate tracking and avoid duplications or errors in accounting.

Description of products or services

A detailed breakdown of the goods or services invoiced must be included, specifying quantity, unit of measure, unit price and total.

Subtotal, taxes and total to be paid

It is important to indicate the subtotal before taxes, applicable taxes (such as Sales Tax or VAT in certain states) and the final amount that the client must pay.

Payment method and conditions

Include details about the accepted form of payment (bank transfer, credit card, PayPal, among others) and the terms in which payment must be made.

Tax identification number

Depending on the type of business, it may be mandatory to include a tax identification number, such as the EIN (Employer Identification Number) or the SSN (Social Security Number) if you are self-employed.

Best practices for efficient billing

Having a well-structured billing process prevents errors, improves financial management, and ensures timely payments. To achieve this, it is important to apply strategies that optimize the process and reduce unnecessary risks.

Automate your billing

Using specialized software helps generate accurate invoices and avoid manual errors. It also allows you to schedule payment reminders and maintain better control over your finances.

Send invoices on time

Not delaying the issuance of invoices is key to ensuring a constant cash flow. The sooner the client receives it, the faster the payment will be processed, reducing the possibility of non-payments.

Offer multiple payment methods

Providing various options, such as transfers, cards, or digital platforms, improves the customer experience and speeds up collections, avoiding unnecessary delays.

Keep an organized record

Keeping digital and physical copies of each invoice allows for better accounting control and facilitates audits or tax reviews if necessary.

Check current regulations

Tax laws can change depending on the state or type of business. Ensuring that your invoicing complies with all legal requirements will avoid problems with the IRS or other regulatory entities.

Implementing these best practices will make your invoicing more efficient, reducing errors and ensuring better management of your business.

Invoicing solution for SMEs and contractors

For small businesses and independent contractors, managing invoicing can be a time-consuming and resource-consuming challenge.

With products such as Invoice Fly, it is possible to easily add new clients, organize contact information, and track each transaction. In addition, it allows you to send estimates and obtain approvals quickly, ensuring that each project moves forward without delays.

Another great benefit is the possibility of receiving payments faster, since online platforms support multiple methods such as PayPal, Stripe, and credit cards. They also facilitate expense tracking, receipt scanning, and detailed reporting for better financial control.