Blog · · 4 min read

How to Number Invoices

Invoice numbering looks trivial until an auditor asks why there is no invoice 47. Here is how to pick a system you can live with.

The two rules

Whatever system you choose, numbers must be unique and the sequence must have no gaps. In many countries both are legal requirements; everywhere they are practical ones, because a gap is indistinguishable from a deleted invoice.

Three systems that work

Pick one and never change it mid-year.

  • Simple sequential — INV-0001 onward. Best for most solo businesses.
  • Year-prefixed — 2026-001, resetting each January. Makes year-end filing easier.
  • Client-suffixed — INV-0042-ACME. Keeps the global sequence intact while making the client visible.

What to do about a cancelled invoice

Never delete it and never reuse the number. Issue a credit note against it, or mark it cancelled and keep it in the sequence with a zero value. The gap you avoid creating is worth more than the tidiness you lose.

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