Skip to content

Guides

Invoicing, pricing and tax, in plain language

How to write the invoice, set the terms, price the job and charge the right tax, with worked examples and real numbers. Written for Canada first and the US second, with a link to the official page behind every rule.
Written by the Sumocat Team. 10 guides, each with its sources.

Getting paid

Write the invoice, set the terms and collect what you are owed.

How to write an invoice that gets paid on timeWhat to put on an invoice in Canada and the US, with a filled in example: your details, the client, a number, dates, lines, tax, the total and how to pay. Plus when to send it and how to follow up.6 min read
What net 30 means, and which payment terms to useNet 30 means payment is due 30 days after the invoice date. What net 7, 14, 30 and 60, due on receipt, 2/10 net 30 and EOM mean, with worked dates, and how to choose terms that get you paid sooner.5 min read
How to number your invoicesHow to number invoices so every one is unique and easy to find: simple sequences, year and client formats, where to start, what to do with mistakes and voided invoices, and how long to keep them.5 min read
How to charge late fees on an invoiceHow to add a late fee or interest to overdue invoices: agree it first, state the yearly rate (the Canadian Interest Act requires it), work out the amount with a worked example, and word it on your invoice.5 min read
What to do when a client won’t payStep by step, from a polite reminder to small claims court: how to chase an unpaid invoice, write a final demand letter, offer a payment plan, use a lien or collection agency, and the court limits in Canada and the US.6 min read

Pricing and quoting

Work out the price, put it in writing and secure the job.

Invoice vs estimate vs quote: what each one is forAn estimate is your best guess at a price, a quote is a fixed price for a defined job, and an invoice asks for payment. When to use each, what to put on them, and the Ontario 10% rule for estimates.4 min read
How to ask for a deposit, and how muchHow much deposit to ask for, how to word it on an estimate, how to split a big job into a deposit and stages, and the rules to check first, like California’s cap on home improvement down payments.5 min read
How to price a job: hourly, flat rate and markupThree ways to price your work, with the math: find the hourly rate that covers your income and costs, build a flat rate from hours and materials, and mark up materials without confusing markup with margin.5 min read

Tax

What to charge and how to show it, for Canada and the US.

GST and HST on invoices in CanadaWhen you must register for GST/HST, which rate to charge in each province, what your invoice has to show, and how PST in BC, Saskatchewan and Manitoba and QST in Quebec fit in. With worked invoices.6 min read
Do you charge sales tax on services in the US?Whether you charge sales tax on services depends on the state. How California, Texas, New York, Washington, South Dakota, Hawaii and New Mexico treat services, labor and parts on the same invoice, and out of state clients.5 min read

Questions about the guides

Something else? Write to support@sumocat.app.

Who writes these guides?

The Sumocat Team at Small Factory Marketing Inc. in Vancouver, the company that makes Sumocat. Every guide lists the official pages it relies on, with the date we checked them.

Are the guides legal or tax advice?

No. They explain how invoicing, payment terms and sales tax usually work, with links to the government pages behind each rule. Rules vary by province and state and change over time, so check with your tax agency or an accountant before you rely on one for your business.

Do I need Sumocat to use them?

No. Everything in the guides works with any invoice. Where Sumocat or one of the free tools saves you a step, the guide says so and links to it.

Write it once.
Get paid on time.

Coming soon to the App Store
  • Free to download
  • No caps on invoices
  • Works offline