Catering Invoice Template

Running a catering business can be a rewarding career. However, between food and beverage costs, labor costs, service fees and taxes, billing customers can get complicated.

A catering invoice helps clients understand what they’re being billed for and reduces your risk of disputes. Here’s a look at how to create the right invoice for your company.

What to Include on the Invoice

A catering invoice should include:

• The client’s name and contact information
• Your company name and contact information
• The invoice number and the date the invoice was issued
• Details of the event (including date, location, time and any special client requests)
• An itemized breakdown of the products and services received
• Any applicable taxes and fees
• The total amount due
• Payment terms

Your payment terms should include the date payment is due and the payment methods you accept. You should also make a note of any late fees that may apply.

How to Write One Step by Step

Once you’ve made your invoice template, creating future invoices becomes much simpler. Here’s how to write one:

• Create a header with your business name, logo and contact information.
• Prominently display the invoice number.
• Create a space for the client’s contact information.
• Create lines for individual products and services (and their prices).
• Add a space for the total due and payment instructions.

The right formatting communicates professionalism. Choose a simple color scheme and a font that aligns with your brand.

Pricing Factors to Account For

Many catering businesses calculate direct costs and then mark them up by 30% to 50%. These are some of the main factors influencing pricing:

• Cost of food and beverages
• Cost of equipment
• Rent, insurance, marketing and other overhead costs
• Fuel and travel costs

Don’t forget to factor in the cost of your team. Whether you have employees or hire help after drafting independent contractor agreements, your labor costs should be a significant factor in your pricing.

Setting Terms and Cancellation Policy

It’s not uncommon for catering companies to set three-tier cancellation policies like these:

• Cancellations 60+ Days Beforehand: Full refund, including deposit
• Cancellations 30–59 Days Beforehand: Refund minus deposit
• Cancellations 0–29 Days Beforehand: No refund

If you draft catering service agreements, you may want to include a “force majeure” clause that protects both parties in the case of unforeseeable events. For instance, if an event is canceled because of a tornado, you might allow the client to reschedule.

Getting Paid and Handling Deposits

A significant percentage of client payments goes toward food costs, so catering companies often have unique payment terms. Most require clients to pay a deposit of 25% to 50% when they book. They also require clients to pay the remainder of the balance prior to the event.

Why the Right Structure Matters for Your Invoice

Drafting a catering invoice may seem like a very small part of your business. However, having the proper contracts, invoices and other documents can help you support strong recordkeeping, build trust with clients and avoid legal disputes.

Not sure how to tell what documents you need? ConsumerShield can help. Take a look at our collection of legal templates and guides today.