Creating a bill means putting together a document that requests payment for goods or services you’ve provided. Whether you call it a bill, an invoice, or a statement, the core purpose is the same: clearly communicate what’s owed, who owes it, and when payment is due. The process is straightforward once you know what information to include and how to format it.
Essential Information Every Bill Needs
A complete bill includes a set of standard elements that protect both you and your customer. Missing even one can delay payment or create disputes down the line.
- Your business name and contact information: Full legal name, address, phone number, and email. If you have a tax identification number or business registration number, include it.
- Customer’s name and contact information: The person or company being billed, with their address.
- Unique bill or invoice number: A sequential number you assign so both sides can reference and track it. Something as simple as INV-001, INV-002 works fine.
- Date of issue: The date you created and sent the bill.
- Due date: When payment is expected. This ties directly to your payment terms.
- Itemized list of goods or services: Each line item should include a description, quantity, unit price, and line total. Vague descriptions like “services rendered” invite questions. Be specific: “Website redesign, 12 hours at $75/hour” leaves no room for confusion.
- Subtotal, taxes, and total amount due: Show the math. List the subtotal before tax, any applicable sales tax, and the final amount owed.
- Payment methods accepted: Tell the customer exactly how they can pay, whether that’s check, bank transfer, credit card, or an online payment link.
Setting Payment Terms
Payment terms define when you expect to be paid and what happens if you’re not. The most common terms are Net 15 (payment due within 15 days), Net 30 (within 30 days), and Due on Receipt (payment expected immediately). Net 30 is the most widely used in business-to-business transactions.
If you want to encourage faster payment, you can offer an early payment discount. A term written as “2/10 Net 30” means the customer gets a 2% discount if they pay within 10 days, otherwise the full amount is due in 30.
Late fees are legal in most situations, but you need to establish them upfront. Include your late fee policy in the original contract or agreement and on the bill itself. Common approaches include a flat fee (typically $25 to $50 per late payment) or a percentage of the overdue amount (commonly 1% to 2% per month). Keeping your annual interest rate at or below 10% is a safe general guideline, since state laws vary on maximum allowable charges. One important detail: never label a late charge as a “penalty.” Courts may interpret that as punitive rather than compensatory, which could undermine your ability to collect.
Formatting the Bill
Your bill should be easy to scan. Place your business name and logo at the top, followed by the word “Invoice” or “Bill” in large text so there’s no ambiguity about what the document is. Group your contact details and the customer’s details near the top, on opposite sides. Put the invoice number, issue date, and due date in a visible spot, often in a summary box near the top right.
The itemized section works best as a table with columns for description, quantity, rate, and amount. Below the table, list the subtotal, any taxes or additional charges, and the total in bold. At the bottom, include your payment terms, accepted payment methods, and any notes (like a thank-you message or reference to a project number).
Keep the design clean. A cluttered bill looks unprofessional and makes it harder for the customer to find the total and payment instructions, which are the two things they care about most.
Tools for Creating Bills
You have several options depending on your volume and budget.
For occasional billing, a simple template in a word processor or spreadsheet works fine. Google Docs and Microsoft Word both offer free invoice templates you can customize with your business information. Save your template once and reuse it, updating the details for each new bill.
For regular billing, dedicated invoicing software automates much of the process. Wave offers a free plan that covers invoicing and basic accounting, with a paid tier at $16 to $19 per month for additional features. Zoho Books has a free single-user version that includes invoicing, inventory tracking, and multi-currency support. QuickBooks Online and FreshBooks are popular choices for small businesses that need invoicing tied into full accounting, with multiple pricing tiers based on features. Xero is another strong option, especially if you need project tracking and expense management alongside billing.
These platforms let you save customer profiles, set up recurring bills, track which invoices are outstanding, and accept online payments directly from the bill. If you send more than a handful of bills per month, the time savings add up quickly.
Sending and Following Up
Email is the standard delivery method for most bills. Send the bill as a PDF attachment (which preserves formatting and prevents accidental edits) along with a brief email summarizing the amount due and the due date. Some invoicing software generates a payment link you can embed directly in the email, letting customers pay with a click.
Track your outstanding bills and follow up promptly when a due date passes. A polite reminder email the day after the due date is appropriate. If payment is still missing after a week, send a second notice that references the original invoice number, the amount, and your late fee policy. Consistent follow-up is the single most effective way to get paid on time.
Creating a Legislative Bill
If you’re looking to create a bill in the legislative sense, the process is entirely different. A legislative bill is a formal proposal for a new law or a change to an existing one. At the federal level, only a sitting member of the U.S. Senate or House of Representatives can formally introduce a bill, but the idea can come from anyone: a citizen, an advocacy group, or a candidate’s campaign platform.
Legislative bills follow a rigid structure. The section is the basic organizational unit, and each section should contain a single proposition. Within a section, content is broken into subsections (labeled with lowercase letters), paragraphs (Arabic numerals), and subparagraphs (uppercase letters). Larger bills group sections into titles, subtitles, chapters, and parts.
The standard structure for a bill’s content follows a specific order: state the general rule first, then list exceptions, special rules, transitional provisions, definitions, effective dates, and any funding authorizations. The language is precise by design. “Shall” means an action is required, “may” means it’s permitted but optional, and “may not” denies a right or privilege. When defining terms, “means” creates an exclusive definition (only the listed items qualify), while “includes” creates an open-ended one (the listed items qualify, but others might too).
If a bill amends an existing law rather than creating a new one, the new language is placed in quotation marks, with instructions outside the quotes explaining where in the existing statute the changes go. Drafting a legislative bill typically involves working with the Office of the Legislative Counsel, which helps translate policy ideas into proper legal language. If you want to propose a law, your starting point is contacting your elected representative’s office with your idea and any supporting research.