Whether your business is small or large, receiving payments on time is vital to maintain a healthy cash flow. However, a report by Credit Research Foundation shows that the reason behind 61% of late payments needs to be corrected invoices. An accurate and precise invoice helps your business to sustain for an extended period. Also, it shows your professionalism which allows you to keep more customers. On the other hand, inaccurate invoices badly affect your business. For example:
- It confuses your customers.
- Lower the interest of clients to do business with you.
- Cause payment delays that will ultimately affect your cash flow.
Therefore, create an invoice template that will make your business professional and keep your customers happy. But, creating an attractive invoice template is not a piece of cake for everybody. You need to use the right tool for it. To help you, we provide an ultimate guide to creating an invoice. So, keep scrolling to create an organized invoice template.
What Is An Invoice?
Before making an invoice, you must know what an invoice is. If you already know, that’s great. But if not, keep reading.
An invoice is a financial instrument that provides the details of goods and services by a business. It includes:
- Details of work done by a company.
- Costs related to the goods and services.
- Personal and business information related to both parties in the deal.
It is a vital document for businesses to request payments from a customer and clients. Also, it works as proof of the exchange.
Vital Elements You Should Include In Your Invoice
The following are a few elements that you should include in your invoice.
Brand Your Invoice
Focus on the colors, fonts, logos, and other branding components. It makes your invoice more professional. Also, it will flash the values that your business wants to serve your customers. Ensure that the invoice design and colors match your websites, social channels, and other content pages. It helps you to maintain consistency and be easily noticeable across the board.
Professional Header
Begin your invoice with the professional header. It will include your business name, business logo (if any), address, and contact information. After this, add the clients’ business name, the person’s name, and their contact information. Moreover, if your business collects sales tax, you must include the business’s tax ID authorized by regional law. For example, Indian business use GST numbers. You can create a creative logo using the logo maker.
Invoice Information
Do not forget to mention the word “Invoice.” It helps customers and clients to identify the document easily. Also, include the invoice ID number. It will help you to track your transaction. Generally, invoice ID is alphanumeric and contains specific information. For example, project name and date of invoice issue.
Include Dates
Make sure to include the dates of the delivery of goods/services and the invoice issued. It helps to form a timeline and track payments.
Details Of Goods/Services Delivered
The invoice should include the list of goods and services sold during a specific invoice period. Include each sold item’s quantity, price per unit, and subtotal. In the case of services, include the amount of time spent on each item and mention the particular service. It will help you to get your payment quickly. Also, it increases the transparency of your work and pricing.
Mention Tax Details And Highlight The Total Unpaid Money
Payment terms explain when and how the company plans to receive client payments. It should contain the following:
- Invoice Issue Date
- Expected date of payment
- Payment methods excepted by the company. For example, PayPal, Credit card, cheque, etc.
- Penalties for late payments
- Currencies that the company except
- Other payment conditions like early payment discounts.
Include The Payment Terms
Mention the tax information related to the sale, which depends mainly on the country’s laws, the local tax rate, the type of business, and other elements. Generally, the total tax bill is calculated for the final invoice amount. And it is presented at the bottom of an invoice with many line items.
Add An Explanatory Footnote With Terms And Conditions
Well, invoices are self-explanatory. But, there is a chance of confusion. For example, customers and clients may need to pay more attention to the discount prices you have applied to the goods/services. That’s why you should mention an explanatory footnote about the discounts.
Moreover, you can also mention the conditions in which customers/clients can return or exchange the products.
Therefore, these are some elements you should keep in mind and include while creating your invoice. Moving further, let’s learn how you can make an invoice.
Well, there are different options available for creating an invoice. And the good thing is that it is quite simple. Especially when you are using an accurate tool. So, below we have mentioned the three methods you can use to create an invoice. So, let’s have a look at them.
How To Generate An Invoice In Google Docs?
Google Docs invoice template Steps:
- Log on to your google account and go to your google drive.
- Click the “New” button and scroll down to the “Google Docs” option. Click the arrow next to this option and select “From a template”. After that, you will get to see the template page.
- On the template page, you will see a search bar. Search “Invoice.” It will provide you with a selection of invoice templates. So, choose and select the best for your invoice.
- So, fill out the vital details and elements in your invoice. Remember to mention the above elements.
How To Generate An Invoice In Microsoft Word?
You will get a variety of invoice templates in Microsoft Word. It is a simple method to create invoice. But, especially when you are familiar with the software, it is paid software. So, sometimes it can also become inconvenient. Therefore, if you still want to create an invoice from Microsoft Word, the following are the steps you have to follow:
- Open the software “Microsoft Word”.
- Click on “File” and select “New.”
- Enter “Invoice” in the search field. After that, Word will show you all the invoice templates.
- Select an invoice template that suits your needs.
- Set a professional header that includes your business information. And then mention the client’s information. You can write them on the opposite side or below your company details.
- Set up the unique invoice number, invoice issue date, and payment due date.
- Lastly, list the products and services in line with the charges. Calculate the total, including delivery fees, sales tax, etc. Moreover, it would be best to mention the total in bold font. It will be visible to the customer/client.
- In the end, download the invoice.
How To Generate An Invoice With A Free Invoice Maker?
If you want to use something other than the above software. You can use invoice template free online. There are several free invoice makers available. For example, visme, canva, etc. However, to use these free invoice makers, follow the below-mentioned steps.
- First of all, enter your email address and log in to the invoice generator.
- When you finish your login process, the generator will show you a variety of templates.
- Select a template that fits your requirements.
- Add the important details. For example, your business name, customer name, sent and due dates, etc.
- In the end, download the invoice and send it to your customer/client.
How To Send An Invoice?
Now, you are all ready to send off your invoice. So, ensure your invoice is in the file format that can not be edited or changed by anyone. Also, ask the recipient which method they prefer to receive the invoice. Then, finally, send them the invoice via their preferable form.
BONUS POINT
Tips To Build A Successful Business
Now, you know how to create and send the invoice. Moreover, as you know, invoice helps business to maintain their money flow efficiently. And a healthy cash flow is one of the features of a successful business. Similarly, there are other aspects as well that help in the growth of the business. That is why we are providing you with some tips that can help your business to grow.
Focus On The Customer Experience
Sometimes, the way you treat your customers is more important than your product and pricing. Customer experience tells you about your company’s products. Also, it expresses how much you care about your customers. Therefore, focus on every step of the consumer’s journey. You have to find out the problems on the path and offer them new opportunities to get a good customer experience.
Be Consistent
Consistency is a significant element in making money in business. You have to keep doing what is necessary for a successful day. As a result, it will create a long-term positive habit that will help you in your business.
Customer Satisfaction
Several businesses need to remember or get about providing the best services to their customers. If you give the top services to your customers and focus on their satisfaction, they will attract to your business more. So, target your customer satisfaction and provide significant benefits to them.
Be Creative
Always look for ways to grow your business and make it stand out.
Analyze Your Competition
To build a successful business, you should be bold and learn from your competitors. They may be doing something that will help your business to grow. Remember that competition gives the best outcomes.
Understand The Risks And Rewards
It is another one of the best tips for you. Calculating risks will help your business to grow.
Prepare To Make Sacrifices
Starting a business is not child’s play. Many things in business change from time to time. Be ready for them with a positive attitude. It will help your business work on new ideas and give you a competitive advantage.
So, now you have a clear idea of creating and what to keep in mind while producing an invoice. Therefore, by following this guidance, start making your great invoice template.
