16 Types of Invoices for Service Businesses

Common service business invoices

Home service businesses can use different invoices depending on the client, what kind of work they’re doing, and what stage a job is in. 

To best serve your clients and keep your billing workflow organized, pick and choose from these common types of invoices and streamline your cash flow. 

1. Standard invoice

The most common type of invoice is a standard invoice or sales invoice. It’s a basic request for payment in exchange for services rendered and includes a description of the job as well as line items for labor, materials, and any other charges, deposits, discounts, taxes, or fees. 

Standard invoices can be sent as full invoices or simplified invoices. Full invoices have individual line items and associated costs, whereas simplified invoices may only include a brief description of the work and the total due. 

When to use:

Standard invoices are typically sent at the end of a job after the work is complete. 

FREE TOOL: Standard invoice generator

2. Pro forma invoice

A pro forma invoice is used to give customers an estimate of anticipated costs, not to request payment. 

Similar to a quote, it includes an outline of projected costs for a job and helps customers get an idea of what their expenses will be if they decide to move forward. 

When to use:

In a service business, a pro forma invoice may be used for jobs where multiple people need to approve a project before it proceeds. For example, if a property manager wants to hire you to wash windows in an apartment building but needs approval from the property owner first.

Pro forma invoices are sent before a job begins and aren’t considered binding. As in, they don’t hold the client to the job or amount and are meant to be used for informational purposes only. 

READ MORE: Quotes vs. invoices

3. Interim invoice

An interim or progress invoice is similar to a regular invoice, but instead of being sent at the end of a job, it’s sent before the work is complete. 

Interim invoices are used for ongoing and long-term projects that take place over weeks or months. They include a description of the work completed to date and only request payment for services that have already been rendered. 

When to use:

You might use an interim invoice during a major home renovation or landscaping project that will go on for longer than your usual billing cycle. Or, you might use an interim invoice to cover material costs for long-term projects to fund the work as you go. 

Pro forma invoices are sent as work progresses, usually when certain milestones are reached or at preset intervals, like biweekly or monthly. 

4. Recurring invoice

A recurring invoice is used to bill clients for ongoing services at regular intervals. Recurring invoices bill clients for pre-approved amounts for the same services. 

When to use:

Use recurring invoices for any regular or routine services. For example, lawn care clients who hire you for weekly mowing and trimming or house cleaning clients who hire you to come in biweekly. 

Recurring invoices are sent at predictable intervals, like once a week or once a month. 

READ MORE: What does net 30 mean on invoices?

5. Credit invoice

A credit invoice is when a business needs to issue a credit to a client, either to correct a mistake like overcharging or provide a refund. 

Unlike other invoices, credit invoices have a negative balance (like -$50) to reflect the credit due to the client. They still have the same information as other invoices, like a description of services and the cost of each one, but the balance owing is for the amount of credit you’re paying them. 

When to use: 

When you owe a client money, like when you forget to apply a valid promotion to a customer’s bill before they pay you and you need to give them a discount after the fact. 

6. Debit invoice

A debit invoice is used to bill a client for services or materials not included in the original invoice. 

For example, let’s say you’re a plumber installing a new dishwasher. While on the job, you discover the existing waterline is damaged and needs to be replaced. Although you initially invoiced the customer for a basic installation, it didn’t include the additional labor and materials needed to cover the repair. 

In this case, you would provide them with a debit invoice to cover the extra work outside of the original invoice. 

When to send: 

Debit invoices are usually sent after a standard invoice and include details about the unexpected costs and labor. 

Pro Tip: Make sure to get a client’s approval before completing any work outside of your initial invoice. Even if it’s necessary, like an emergency repair, it’s essential to let them know so they aren’t surprised by the additional bill once the work’s done. 

7. Mixed invoice

A mixed invoice combines a credit and debit invoice, outlining both what a client owes and any credits you owe to them. 

So, on the mixed invoice you send to them, you’d include both amounts to calculate the total. 

That means if they paid a deposit of $500 and the total charge for the work you did was $1500, the amount due on your mixed invoice would be $1000. 

When to send: 

When a client’s account has both a credit and a debit. Like if a client pays a deposit before the work begins, it counts as a credit to their account, whereas the work you do is a debit. 

8. Time and materials invoice

A time and materials invoice is when the total cost is determined by the time and materials associated with the job. 

These types of invoices are often used in repair work when it’s hard to predict how long a job will take or what it will require before you diagnose the issue. For example, in appliance repair when you need to diagnose an issue before you can order a part and estimate how long it will take to fix. 

When to send:

Time and materials invoices are sent after a job’s done and detail the labor and parts you used to complete the work. 

9. Timesheet invoice

A timesheet invoice is used for service providers who bill hourly and includes the number of hours worked and your standard pay rate. 

For example, house cleaners may bill hourly instead of using service rates since each customer’s house varies in terms of cleanliness, square footage, and client needs. 

When to send:

Timesheet invoices are sent after a job is done and are calculated by tracking the time spent on the job. 

FREE TOOL: Timesheet template

10. Collective invoice

A collective invoice is when you send a single invoice for multiple purchases at a time. 

For example, if you offer pressure washing services and a client hires you to service two different properties, a collective invoice would include the amount due for both. This prevents you from having to send two different invoices. 

Collective invoices work well for clients who hire you to service more than one property at a time, like lawn care or snow removal for multiple condo buildings. 

When to send: 

When you have two bills for the same account. 

For example, if you offer pressure washing services and a client hires you to service two different properties, a collective invoice would include the amount due for both. This prevents you from having to send two different invoices. 

11. Retainer invoice

Retainer invoices are used when a service business charges a client an upfront fee to secure their services in the future. 

A retainer ensures they block out their time for the city in advance so that they can plan out their schedule and prioritize bookings. 

When to send: 

When you’re pre-billing a client for work you are contracted to do in the coming month. 

For example, a landscaping company that works for the city to maintain and manage public green spaces may charge a retainer at the beginning of the month to cover all the work they do.

12. Purchase order invoice

A purchase order invoice is when an invoice is attached to a specific purchase order (PO) issued by a buyer to a seller. 

This type of invoicing helps business-to-business clients with accounting and record-keeping, ensuring that specific jobs are linked to unique agreements. 

When to send: 

When a client provides you with a PO number to attach to your invoices. 

For example, let’s say a property management company hires a service provider for maintenance across multiple properties. The purchase order would be directly linked to the terms and conditions outlined in that agreement—such as the rate, number of properties, timeframe, etc. 

When the service company provided an invoice at the end of the job, the invoice would reference the unique PO number that was given to them by the client. 

13. Self-billing invoice

A self-billing invoice is when a buyer provides an invoice instead of a seller. 

For example, if you do commercial cleaning at an office building, your client might provide you with an invoice to sign off on to make the payment process faster and easier. The services you provide and their associated costs will be based on your initial quote or rate. 

Self-billing works well for recurring work with business clients, but both parties should agree to it beforehand to prevent any issues. 

When to use: 

When a client provides an invoice to you for the work you’ve done. 

For example, if you do commercial cleaning at an office building, your client might provide you with an invoice to sign off on to make the payment process faster and easier. The services you provide and their associated costs will be based on your initial quote or rate. 

14. Outstanding invoice

An outstanding invoice is an invoice you send after your initial invoice due date passes without receiving payment. 

It includes the original amount due as well as any late fees or penalties as per your payment terms. 

When to send: 

After an initial invoice is sent and passes the payment deadline without being paid. 

READ MORE: 6 overdue payment reminder email templates to get you paid faster

15. Final invoice

A final invoice is when you send your last invoice to a client. They’re often used at the end of long-term projects and ongoing work to signal the end of the job. 

When to send: 

At the very end of a long-term job. 

For example, if you were sending interim invoices during a big landscaping job, your last invoice would be the final invoice and would include the total remainder due. 

16. Expense report

An expense report is when an employee or subcontractor bills you for business expenses they paid for out of pocket. Think gas, parts, materials, or supplies. 

Along with the report, they should also submit a receipt to confirm the purchase was made and to act as a record for tax purposes. 

When to use: 

When your subcontractor or employee needs you to reimburse them for job-related purchases. 

READ MORE: Invoice vs. receipt

Paper vs. digital invoices

When it comes to creating and sending invoices, you have two formats to choose from: paper and digital. 

While both types of invoices cover the same information, a paper invoice is usually provided in person or through the mail, while a digital invoice is sent via email. 

Electronic invoices are preferred since they’re easier to create, send, and track. Paper invoices are subject to human error and much easier to damage or misplace. 

You can make digital invoices yourself using an invoice template. Or  use invoicing software like Jobber to:

• Instantly generate accurate and professional invoices, complete with your company branding
• Send multiple invoices at once with batch invoicing
• Automatically send customized email or text follow-ups to customers, reminding them to pay their overdue invoice
• Speed up your invoicing process and get paid faster with convenient online credit card processing

Which software should I use to create and send invoices?

No matter what type of invoice you send, invoicing software helps you avoid mistakes, impress clients, and get paid faster.

Depending on your business needs and goals, you can choose from many apps, including Jobber, QuickBooks Online, and Zoho. There are also a variety of free tools for basic invoices, like Jobber’s free invoice generator. 

To choose what billing software works best for you, consider: 

• Your budget
• Whether you have an existing CRM or not
• What integrations you want or need
• How you usually bill clients and what types of invoices you use

READ MORE: Best invoice apps

Using the right invoices for each job helps manage cash flow. It can also help you get paid faster. By thinking about how to bill each client individually, you can improve your workflow. This approach allows you to create a strategy that works for you, your customers, and your business.

Especially if you use automated invoicing software like Jobber to create, send, and track your invoices.