Final Invoice Template
A final invoice closes the account on a project that was billed in stages. It bills whatever has not been billed yet (the last stretch of work, any approved changes and any retention held back from earlier invoices) and proves the arithmetic by listing everything that came before: the final contract value, each earlier invoice by number and amount, the payments and credits received, and the balance that settles the job. When it is paid, both sides should be able to say the project is fully billed and fully paid. That is why it is usually paired with a closing document such as a final lien waiver or a release of claims, and why it should never repeat amounts already invoiced or charge tax twice on them. The download is an editable HTML invoice with invoice number, dates, a line-item table and totals, plus fields for the summary of previous invoices and the retention release. Fill it in your browser and print it or save it as PDF.
Preview this editable document
Download the HTML file to edit its fields, then print or save as PDF. Totals are entered manually.
What This Template Includes
- Project or contract reference, marked 'Final invoice'
- Completion or acceptance date, and who accepted the work
- Original contract value
- Approved change orders, by number and amount
- Final contract value
- Previous invoices: number, date and amount of each
- Payments and credits received to date
- Work billed on this invoice (balance not previously billed)
- Retention released, with the amount held on each earlier invoice
- Agreed deductions or backcharges, if any
- Final balance due
- Closing documents enclosed (final lien waiver, release, warranties, as-built drawings)
How to Create Your Final Invoice
- 01
Describe your work
Type a plain English description of the services you provided, the client, and the amount.
- 02
AI generates your invoice
InvoiceQuickly's AI drafts the client, line items, dates, and totals for you to review before saving.
- 03
Review, download, and send
Check every detail, download the PDF, or use Pro to email the PDF directly to your client.
Recommended Payment Terms
Issue the final invoice once the work is complete and accepted, not before: on construction jobs that usually means after the punch list is signed off, and on service projects after the client confirms delivery. Payment terms come from the contract, and the final payment is often the slowest because the client checks the whole account and waits for closing documents, so send everything in one package: the invoice, the summary of previous invoices, any lien waiver or release the contract requires, and warranties or handover documents. Retention is normally due on completion or a set period after it; quote the clause on the invoice ('Retention released on completion per clause 9.4'). If the client disputes one item, ask them to pay the undisputed balance and settle the rest separately, rather than holding the whole final payment.
Need help writing payment terms? Read our guide to invoice payment terms for best practices and templates.
Tax Information
Tax on a final invoice applies only to what this invoice bills for the first time. If your earlier invoices already charged sales tax or VAT, do not charge it again on the full contract value: charge tax on the final work and changes billed now, and treat retention according to how it was taxed when first invoiced. Some countries write this into the law: in Germany, Section 14(5) of the Value Added Tax Act (UStG) says a final invoice must deduct the partial payments received before the work was done and the tax on them, where invoices were issued for those payments. In the United States, sales tax on construction depends on the state and on whether the work is new construction, repair or a capital improvement, so check your state's rules for the project. InvoiceQuickly applies one tax percentage to the whole invoice; if only part of a final invoice is taxable, calculate the tax yourself and enter it as its own line with the invoice tax set to 0%. General information, not tax advice.
Industry context (2026)
Final payment is usually conditional on more than finishing the work. On US federal fixed-price construction contracts, FAR clause 52.232-5 (May 2014) says the government pays the amount due after completion and acceptance of all work, presentation of a properly executed voucher, and presentation of a release of all claims arising from the contract, except claims the contractor specifically excepts in stated amounts. The same clause limits retainage to a maximum of 10 percent when progress is unsatisfactory and requires the remaining withheld funds to be released when the work is substantially complete, keeping only what is adequate to protect the government (acquisition.gov, accessed 28 October 2026). Private construction contracts and state prompt-payment and lien laws set their own release periods and waiver forms, so check the contract and your state's rules before relying on a date. Outside construction the same idea applies to any staged billing: Germany's VAT Act, Section 14(5) UStG, requires a final invoice to deduct advance payments already invoiced and the VAT on them (gesetze-im-internet.de, accessed 28 October 2026). General information, not legal or tax advice.
Worked example
Worked example (illustrative figures), continuing the fit-out project on our progress invoice template: a general contractor's contract is $148,000 with 10% retainage. Change order CO-1 ($6,500) was approved during the job and CO-2, extra door hardware, $2,800, near the end, so the final contract value is $157,300. Four progress applications were billed net of retainage, all paid: Applications 1 and 2, $45,450.00; Application 3, $44,685.00; Application 4, $42,075.00. Total gross work billed $146,900, retainage held $14,690.00, net paid $132,210.00. The owner signs off the punch list on 20 October 2026, and on 23 October the contractor issues INV-0207, 'Final invoice, Application 5'. Line 1: balance of contract work not previously billed, including CO-2, $157,300.00 − $146,900.00 = 1 × $10,400.00. Line 2: release of retainage, 10% held on Applications 1 to 4 ($146,900.00 gross), 1 × $14,690.00. Tax 0% in this illustration; set it from your state's rules. Final balance due $25,090.00, net 30 per the contract. Check: final contract value $157,300.00 − paid to date $132,210.00 = $25,090.00. Notes: the list of applications above, 'Completion accepted 20 October 2026', 'Enclosed: conditional final lien waiver, warranties, as-built drawings'. A smaller version of the same logic for a design studio: project fee $12,000, deposit invoice INV-0201 for $6,000 paid in August, so the final invoice bills 'Project fee $12,000.00 less deposit INV-0201 paid $6,000.00', 1 × $6,000.00.
Common mistakes to avoid
Billing the whole contract again
A final invoice for $157,300 when $132,210 is already paid invites a rejected invoice at best. Bill only what has not been billed, and show the earlier invoices so the client can see why.
Charging tax twice
If tax was charged on each progress invoice, charging it on the full contract value at the end double-counts it. Tax only the amounts billed for the first time.
Forgetting the retention
Retention held across several invoices is easy to lose track of, and it is often the largest item on the final bill. Track it per invoice and bill its release explicitly.
No closing documents
A final invoice without the lien waiver, release or warranty documents the contract asks for usually waits until they arrive. Send them together.
Leaving the account open
If an item is still disputed, say so and invoice it separately. Otherwise nobody can tell whether the final invoice really is final.
Invoicing Tips
- 1Mark it clearly: 'Final invoice, Project 2026-14, Applications 1 to 5'. A client's accounts team treats the last invoice differently, and needs to know it is the last.
- 2List every earlier invoice with its number, date, amount and whether it is paid. The final balance should equal the final contract value minus everything paid and credited, and the reader should be able to check that in one line.
- 3Bill retention as its own line and show how it was built up ('10% held on Applications 1 to 4, $146,900.00 gross = $14,690.00'). It is often the largest single item on a final invoice.
- 4On a project with a deposit, deduct the deposit only once: 'Project fee $12,000.00 less deposit invoice INV-0201 paid $6,000.00 = $6,000.00 due'.
- 5Send the closing documents with the invoice. A final payment that waits for a lien waiver or a warranty certificate is a final payment that is late.
- 6If anything is still disputed, invoice the agreed balance now and handle the disputed item on a separate invoice or credit note, so one argument does not hold up the whole account.
Related Resources
- Progress billing guide: schedules of values, percentage complete and retainage
- Construction invoicing guide
- Invoicing for contractors
- Handling partial payments
- All invoice templates
Frequently Asked Questions
What is a final invoice?
A final invoice is the last invoice on a project billed in stages. It bills the remaining work and any retention, lists every earlier invoice and payment, and states the balance that closes the account. Once it is paid, the project should be fully billed and fully paid.
What should a final invoice include?
The words 'Final invoice', the project or contract reference, the completion date, the original contract value and approved change orders, each previous invoice with its amount, payments and credits received, the work and retention billed now, any agreed deductions, the final balance and the closing documents enclosed.
What is the difference between a final invoice and an interim invoice?
An interim invoice bills one period or stage and leaves the project open. A final invoice is issued once the work is complete and accepted: it summarises all interim or progress invoices, releases retention and closes the account.
How do I show retention on a final invoice?
Put the retention release on its own line and show how it adds up from the earlier invoices, for example '10% held on Applications 1 to 4 on $146,900 gross = $14,690'. Quote the contract clause that releases it, and include any closing documents the contract requires before release.
Should a final invoice include tax on the full contract value?
No. Tax already charged on earlier invoices is not charged again. The final invoice charges tax only on the amounts it bills for the first time. Germany's VAT law makes this explicit: a final invoice must deduct the advance payments and the tax on them.
When should I send a final invoice?
When the work is complete and accepted under the contract, together with any lien waiver, release or warranty documents the contract asks for. On US federal fixed-price construction contracts, for example, final payment follows completion and acceptance, a proper voucher and a release of claims.
Can I make a final invoice in InvoiceQuickly?
Yes, as an ordinary invoice. Bill the remaining work and the retention release as lines, and list the previous invoices and payments in the notes. InvoiceQuickly has no retention field or negative lines; on Pro you can issue a credit note for an agreed deduction. Free covers 5 invoices in total; Pro is $9 a month.