How to Create a Plumber Invoice in 5 Simple Steps [w/ Tips]
September 26, 2024
A plumber invoice is a key document in ensuring that plumbing businesses and contractors keep track of client payments and secure steady and consistent cash flow.
Understandably, it can still be easy to commit mistakes and forget to include key details in an invoice if you are not familiar with how to create a solid and reliable invoice document.
To help you minimize these invoicing errors, this article will explain all the essential details you must include in a plumber invoice, as well as the steps in how to create a professional invoice for plumbers that best enumerates the scope of services that you offer. Let’s start!
Key Takeaways
- A plumber invoice contains a plumbing contractor’s services, payment terms, and rates. It is issued to request payment from clients who hired a plumber’s services.
- Professional invoices for plumbers should follow a clear and neat format. More importantly, the invoice should reflect correct and accurate information about the transaction to earn the customer’s trust.
- A plumbing invoice is different from a plumbing bill in that an invoice is used by contractors or businesses, while a bill is a term that customers or clients use to refer to pending payments that they owe to an establishment, vendor, or service provider.
- Using an invoice generator, hiring an accountant, establishing a solid set of payment terms, and keeping digital copies of your plumber invoice enhances the efficiency of your operations and reduces errors in charging payments from customers.
What is a Plumber Invoice?
A plumber invoice is a billing document issued to help plumbing contractors charge payment from clients in exchange for their services. It contains a list of all the services provided and materials used in relation to the nature and scope of their job.
To be more specific, here are the key components that should be present in a plumber invoice:
- Business name, address, and contact details
- Client name and contact information
- Invoice number and date
- Invoice payment terms, including your invoice late fee wording or policies and accepted payment methods
- A complete and detailed list of the services you provided
- The corresponding rates for each of the services
- The taxes that apply to your transaction
- The gross and net amounts of the plumbing services offered
- Any discounts, additional notes, or clarifications that you may have regarding the prices or services requested by your client
It is important for plumbing businesses to provide clear and concise documentation of their services for transparency purposes when charging payments from their customers.
A plumber invoice also gives clients an opportunity to review whether the plumber fulfilled their end of the bargain and charges reasonable rates. Otherwise, they can dispute the invoice if they find any inconsistencies between their prices and the services listed in the billing statement.
More importantly, creating plumber invoices in line with your services and responsibilities instills legal compliance, particularly when applying taxes, adding your service charges, and calculating the amount owed by each customer.
5 Steps to Creating a Plumber Invoice
There are five steps to creating a reliable plumber invoice that accurately conveys your terms and prices to your customers. That said, let’s explore the different components of creating an invoice for your plumbing services:
#1. Add Your and the Customer’s Information
Inputting your business and customer’s name enables you to address or issue your plumber invoice to the correct recipient.
In the same manner, providing your business name, updated business address, and contact number verifies the validity and legitimacy of your business operations.
If a client has inquiries about your invoice, they can use the contact information on your invoice to reach out and clarify any details about their bill. For instance, a client may want to ask about the different types of payment methods that you accept.
Similarly, labeling your invoice with each of your clients’ respective names and basic information allows you to organize your accounting books and send payment reminders accordingly.
#2. Create a Unique Invoice Number
A unique invoice number consists of the date when the invoice was issued and a sequence number. The sequence number on a plumber invoice and on all other types of invoices usually follow a chronological order.
Here’s a plumber invoice example that shows how to generate a unique invoice number:
Let’s say you issue your first invoice to Client A on January 5, 2024. That means your unique invoice number for Client A should contain the date when you sent the invoice, which is 01/05/2024.
At the same time, since the invoice in this example is the first one issued for the year, then it is only logical to assign it to sequence number 1. When you combine the date and sequence number, you come up with an invoice number such as INV-01052024-001.
You can change the arrangement of the numbers and dates—just make sure you or your accounting personnel can easily understand the structure of your invoice number.
#3. Specify the Invoice Terms and Payment Due Date
Your invoice payment terms refer to the essential information and policies that your clients must know about your rates and services.
The information includes the payment due dates for each client, your preferred payment methods, and the specific discounts and pay arrangements that you accept.
By enumerating and specifying your payment terms, you protect your business and inform clients of the scope of their responsibility when fulfilling the transaction.
#4. Enumerate Your Services
When enumerating the scope of the services fulfilled in your plumber invoice, focus on the services hired by your client. If there were materials you had to use or provide to fulfill your services, provide the exact itemization of all the tools.
You must also provide the corresponding price charged for each material and service.
It is crucial to practice transparency and honesty when listing your services and prices because that is how you earn the trust of your customers.
#5. Calculate the Subtotal & Net Amount
Lastly, once you have listed all the services you’ve provided to your client in your plumber invoice, you must add the total amount due to be paid by your customer. The resulting amount is the subtotal before taxes.
When including any discounts or applicable taxes, such as VAT, indicate the type of taxes and the percentage of taxes added to the subtotal amount.
If you offer discounts or if your customer follows specific types of net terms, such as a 2/10 net 30 or a net 15 payment term, make sure it reflects on your invoice as well.
Once all necessary adjustments and taxes are added to the subtotal amount, you’ll arrive at the total net amount, or the amount that your customers must pay on or before the specified due date on your invoice.
The Difference Between a Plumber Bill and an Invoice
The difference between a plumber bill and an invoice is quite simple—plumbing contractors use the term ‘invoice’ when requesting payment from their clients.
Meanwhile, clients or customers use the term plumber bill or plumber billing statement to refer to the bill or invoice they receive from a plumber whose services they hired.
Understanding the difference and appropriate time to use the terms plumber invoice vs. plumber bill prevents misunderstandings when handling multiple transactions with different clients.
A plumber invoice summarizes the services hired by the client, as well as the corresponding amount they must pay to the plumbing contractor. Plumber invoices follow a specific format, although a client’s bill or billing statement contains the same key information.
5 Expert Strategies for Creating a Plumber Invoice
Expertly creating a plumber invoice also requires resourcefulness and establishing clear and concise invoice terms. In that regard, knowing and including the basic information that goes into the said document is just the first step.
If you want to boost the efficiency of your invoicing process for your plumbing services, use the following tips:
#1. Use a Professional Template
If you look at any plumber invoice example from more prominent and established businesses in the industry, you may notice how their invoices look neat and professionally made.
More often than not, these businesses already have a plumbing invoice template tailored to the trade and customers’ liking. Fortunately, you can achieve a professional-looking plumber invoice with the help of an invoice generator.
Paystub.org’s invoice generator has a selection of templates that you can choose from based on your preferences. Our generator lets you save time and resources when invoicing different or multiple customers.
At the same time, our generator also comes with a built-in calculator, thereby enabling you to calculate the subtotal and total labor and material costs for each client accurately.
#2. Specify Payment Terms Clearly
Establishing clear payment terms and specifying them in your invoice or before commencing your services prevents disagreements when it comes to your rates and scope of services.
For instance, you can enumerate the different payment methods accepted by your business so that your clients can check whether they have the means to use any of your preferred payment channels.
Or, you can create a set of guidelines on how your trade handles outstanding payments and explain it to your customers. The key is to show them the possible consequences should they fail to fulfill the payments they owe in a timely manner.
#3. Keep Digital Copies
Keeping digital invoices may not seem like much at first glance, but in truth, it will help your business in the long run. Digital copies of your plumber invoices serve as a backup in case your printed invoices are damaged or misplaced.
On top of that, saving electronic copies of your invoices and accounting documents effectively keeps your records organized and easy to update.
As such, preparing the necessary paperwork when filing taxes or addressing a client dispute will not be as tedious. You can easily pull up invoices and contracts from previous transactions or reproduce multiple copies of a single plumber invoice when needed.
#4. Hire an Accountant
Hiring an accountant means equipping your plumbing business with the expertise and background needed to streamline your invoicing process.
A licensed accountant can boost your operations’ efficiency when it comes to handling multiple client requests and even calculating your taxes. Accountants are also instrumental in keeping track of your profits and losses each quarter.
They can help give you better insight into how to manage the costs of maintaining your business.
Furthermore, a licensed accounting expert can aid you in identifying outdated payment policies that may be limiting your income or contradicting other existing payment terms you may have for your trade.
#5. Practice Time Management
Time management is crucial in a plumbing business. Aside from preparing, issuing, and following up on your plumber invoices, you also have to oversee your staff, uphold their labor rights, and prepare their wages.
Not only that, but you must also exert effort in monitoring your expenses, marketing your services, and acquiring new customers. If you have a newly established plumbing business, you need to meet the different plumbing licensing requirements and regulations in your state.
Managing your time and maximizing your resources keeps you from neglecting other key components of maintaining your operations.
Whether it involves issuing invoices in a timely manner, filing your taxes, or regulating your payroll administration process, budgeting your time accordingly prepares your business for success.
Final Thoughts
Creating a plumber invoice is quite easy as long as you know the basics of preparing one. Maximizing available tools and resources will help you save time, money, and energy when issuing your invoices.
In the long run, a foolproof invoicing system paves the way for securing more income for your trade, boosting customer convenience and trust, and attracting more new clients.
Plumber Invoice FAQ
#1. When is the best time to send a plumbing invoice?
The best time to send a plumbing invoice is after completing the service for the client. In this manner, you can justify your rates, and your client will not forget about your invoice.
#2. What is plumbing invoicing software?
Plumbing invoicing software is a tool that helps plumbers automate how they prepare invoices or billing statements for each client they cater to. It enables plumbers to remain efficient while ensuring they get paid on time.
#3. What does a plumber's invoice look like?
A plumber’s invoice contains the business name and contact information of the plumbing service provider. The invoice also summarizes the services and materials they provided, along with the corresponding prices for each.
Finally, all applicable taxes, payment terms, and the net amount to be paid must also be shown in the invoice.
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