Invoice Templates for Construction
If you work in the construction industry as a contractor, subcontractor, or business owner, it’s important to issue valid invoices to your customers.
While construction invoicing and accounting can be more complex than in other sectors, there are ways to make the process much simpler. One option is using a premade invoice template or invoicing software to help you create professional invoices quickly.
This article explains what information needs to be on a construction invoice, and if you should issue tax or non-tax invoices. We've also included a sample construction invoice and free invoice templates available for download in Word and Excel format.
The first step to choosing an invoice template is understanding if your business needs to issue non-tax invoices or tax invoices. If your business is registered for sales tax, then you'll need to issue tax invoices to your customers. If you're not registered for sales tax, you can issue invoices excluding tax.
If you're unsure if your business needs to register for sales tax, you should contact your local tax office. Each state and individual county has their own tax threshold for registration. Once you reach that threshold, you'll be required to register with the tax authorities and collect sales tax from your customers.
Now here’s where it gets tricky - each state and county has a different sales tax rate. You may be wondering which rate to apply to your sales if your construction business operates across state lines.
The general rule of thumb is that you don’t need to collect sales tax in a different state if you don’t have nexus status (tax registration) there. However, as soon as you reach the nexus threshold in that state, you'll need to register for sales tax and collect the local sales tax rate.
It’s no secret that sales tax is incredibly complex. If you regularly invoice customers in a different state, it could be beneficial to hire an accountant or contact your local tax office for advice.
Since invoices are legally binding documents, they require certain information to be valid. Construction companies should list all of the materials, labour, and extra costs involved in the sale. The following information should also be included on your invoices:
The title “Invoice”
Your business name and address
The customer’s name and address
The invoice date of issue
A unique invoice number
The payment due date and any payment terms
A description, quantity, and price of the goods/services sold
The total amount due
If your business is registered for sales tax or you import/export goods from the country, you may need additional information on your invoices. It would be beneficial to speak to an accountant if your circumstances are complex.
Want to learn more about the mandatory invoice fields and which sales require an invoice? Read more in our article: “What Information Needs to be on an Invoice?”.
Below, you’ll find an example of a professional construction invoice. Invoices don’t need to be plain and boring, you can customize your sales documents with your logo, images, color scheme, fonts, etc. As long as the required information is stated on the invoice, you can create your own design that suits your business.
If your construction business uses Excel to create invoices, we have provided free invoice templates available for download below.
There are two tabs in the Excel document, one for non-tax invoices and one for tax invoices. You can include your logo, business details, and bank account information. Formulas have been added to the document so your totals will automatically add up.
If your business prefers to use Word invoice templates, you can download one of our premade templates below.
Word does not offer formulas so you will need to manually calculate and enter the tax and totals. You can customize the document with your business details and logo. Make sure to select the correct template to reflect if your business is registered for sales tax.
Word and Excel are great for creating the occasional invoice. However, invoicing software offers several advantages.
SumUp Invoices is invoicing software that can help you create professional invoices in under 1 minute. If you upload your customer and item list, you can easily select them from our premade invoice template and send it directly to their email.
The software can also help you get paid faster. Include a payment link directly on the invoice so your customer can pay the balance instantly and securely online.
You can manage your invoices from anywhere, whether you’re in the office or on a job site. You can issue invoices and track the status of your sales from your computer, phone, or tablet.