Free Invoice Template for Accountants
Invoice clients for bookkeeping, tax returns, accounts preparation, and advisory work. Professional PDF invoices — private, instant, no subscription.
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What to Include on an Accounting Invoice
Accounting invoices should clearly describe the services rendered and the period covered — especially important for compliance work tied to deadlines. Include:
- Service description — e.g., "Preparation of annual accounts — year ended 31 March 2025", "Self Assessment tax return — 2024/25"
- Period covered — financial year, quarter, or billing month
- Scope of work — what's included (and what's out of scope, if relevant)
- Your professional reference number — ICAEW, ACCA, or ATT membership number if applicable
- Payment terms — on completion, or staged payments for larger engagements
- Disbursements — Companies House filing fees, HMRC penalties passed through, software licences
Fixed Fees vs Hourly Billing for Accounting Services
Fixed annual fee: The most common model for ongoing compliance work. A fixed monthly or annual fee covers a defined scope — bookkeeping, VAT returns, payroll, year-end accounts, and tax return. Clients value predictability; you benefit from consistent revenue.
Example fixed-fee structure:
- Monthly bookkeeping (up to 50 transactions) — £150/month
- Quarterly VAT returns — £200/quarter
- Annual accounts + Corporation Tax return (limited company) — £1,200/year
Hourly billing: Better suited for advisory work, one-off consultations, or complex tax planning. Track time carefully and include a summary of time spent per task.
Invoicing for Disbursements and Third-Party Costs
Accountants often pay fees on behalf of clients — recover these on your invoice:
- Companies House fees — annual confirmation statement, company formation, changes to officers
- HMRC penalties or interest — passed through at cost with a clear note that these are government charges, not your fee
- Accountancy software licences — Xero, QuickBooks, FreeAgent charged on behalf of the client
- Payroll bureau charges — if outsourced to a third party and recharged
Always separate disbursements from your service fee and label them clearly. Clients should not confuse a government filing fee with your professional charge.
VAT for Accountants and Bookkeepers
Accounting and bookkeeping services are standard-rated for VAT:
- UK accountants: Register for VAT at £90,000 turnover. Standard rate (20%) applies to all professional services. A VAT-registered accountant must issue a VAT invoice showing their VAT registration number.
- EU accountants: Professional services are taxable at standard VAT rates. For B2B clients in other EU countries, reverse charge applies — include both VAT numbers and a reverse charge note.
- Professional body requirements: Some professional bodies (ICAEW, ACCA) require specific engagement letter and invoicing standards — check your body's guidance for compliance requirements.
Frequently Asked Questions
Should I use engagement letters alongside invoices?
Yes — an engagement letter sets out the scope of work before it begins; an invoice records the fee for that work. Both are essential for professional practice. Reference the engagement letter number or date on the invoice: "Per engagement letter dated 15 Jan 2025." This protects you in fee disputes and is required by most professional body codes.
How do I invoice for work outside the original agreed scope?
Issue a supplemental invoice or add a clearly labelled out-of-scope line item: "Additional work — restructuring advice not included in original engagement — 3h @ £150/h = £450." Discuss and agree the extra work before doing it, and confirm in writing. A variation email is sufficient; an amended engagement letter is better for larger scope changes.
Can I charge interest on late invoices from clients?
Yes. Under the UK Late Payment of Commercial Debts Act, you can charge statutory interest (8% above base rate) on overdue B2B invoices. State your late payment terms on the invoice: "Interest at 8% per annum above Bank of England base rate may be charged on overdue balances." For most clients a polite reminder is more effective than invoicing interest, but the legal right is there.
How should I invoice for Self Assessment tax returns?
Invoice on completion and submission: "Preparation and submission of Self Assessment tax return — tax year 2024/25 — £350." For clients with complex affairs (rental income, capital gains, foreign income), detail the complexity in the description to justify the fee. If you file by the deadline but the client delays providing information, note this on the invoice to protect your reputation if a penalty arises.
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