When a buyer and seller have come to a finalization of what’s to be purchased, then the seller is responsible for providing all of the details regarding the transaction. That way, the buyer can guarantee that he/she is only paying for whatever has been actually requested.
This is where an invoice comes in as it’s a tool that’s able to lay out all of the details regarding a transaction that has or has yet to take place. This article is going to teach you how to come up with your own invoice.
Elements of an Invoice
If you’re going to come up with an invoice, then you should know that there are elements that you must never forget to include. Whether you’re making a rental invoice, delivery invoice, or even a retail invoice, you have to make sure that they have all the information that both the buyer and the seller need to learn about the transaction between them.
So knowing that, here are the basic elements that just about every good invoice is going to need:
1. Company Information: It should be very obvious that something similar to a receipt will need to display who is responsible for its creation. So it’s here where you’ll place the basic information of the company from which the invoice originated from. Make sure to include the company’s name, address, and even the contact details.
2. Date: Always provide the date in which the invoice was created. Never forget to include the month, day, and year when putting it into the invoice.
3. Invoice Number: Every invoice should have its own unique invoice number. This makes it much easier for the seller to recall a particular transaction should there be any issues that arise. Always check to make sure that this is included in every invoice, and that there are none with a similar number.
4. List of Goods and Services: The buyer will definitely want details on everything that he/she is about to purchase. This means that the invoice must include information on everything that’s being provided by the seller.
5. Payment Details: All buyers will want to know exactly how much they are going to pay and what factors contributed to the total amount. So this is where you will need to provide information such as the amount of every item listed in the invoice, taxes to be added, the total amount that has to be paid by the buyer, and the method in which the buyer will pay for the price being asked.
6. Terms: Every invoice will need payment terms. This is to guarantee that the buyer will push through with the transaction or that the company responsible for providing what’s needed is still compensated should the buyer change his/her mind. Standard payment terms will vary based on the industry, the company’s preference and the relationship between the buyer and seller.
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How to Make an Invoice in PDF
If you’re going to make an invoice, then it is important that you know the steps that allow you to actually make one. Although knowing what is going to be inside an invoice will come in handy, but you still have to make sure that you include them in a way that will make the document look presentable as well as being easy to understand.
So knowing that, here are the steps that will allow you to come up with a proper invoice:
1. Install a PDF Program: If you plan on making an invoice in PDF, then you will obviously need to make use of a program that allows you to make it in that particular format. So what you are going to have to do is to download and install one. There are many free ones that are available on the internet, and there are some that you can pay for that contains more features. Choosing which one to use is all a matter of personal preference.
Once you have managed to choose the program that you want to use, you must then decide if you are going to start making the invoice from scratch, or if you are going to make use of an invoice template.
Take note that making use of a template is much easier than starting from a blank document as all you have to do is replace the dummy information with whatever it is that you desire to change it into. However, making a new invoice will give you the ability to customize it in a way that will make it unique. So choose which option you would like to go for before making your invoice.
2. Include All of the Details: Next is that you are going to have to include all of the information and details that would naturally come with every invoice that is to be made. Basically, you just have to recall all of the basic elements of an invoice and include them into the one that you plan on making. You have to make sure that they’re all positioned exactly where they are supposed to be.
If you are having trouble figuring out what piece of information goes where then you can always look at the many different invoice samples that you can find online and use them to figure out what goes where. That way, you can guarantee that the invoice you end up making will look professional and can be easily understood by the buyer.
Tips for Making an Invoice
1. Go with a proper format: No matter what kind of invoice you do end up making, you want to make sure the buyer is able to understand everything that you’ve put into it. What this means is that you will need to take note of the font and font size that you use, as well as how the information is aligned and if you want to use bullet points. If you want to have an idea as to what kind of format that you should go for, then simply look at the samples of invoices that you can find anywhere and use them as a reference.
2. Check all of the information: Before you finalize the invoice you’ve made, you have to guarantee that you didn’t forget to include anything or that you did not include any wrong information. You want to avoid issues such as listing down items that the buyer did not ask for or miscalculating the total amount that has to be paid. In order to avoid them, you simply need to do a thorough check on the invoice. That way, you should be able to spot and fix any mistakes that you could have made immediately.
Types of Invoices
Now that you know what an invoice should contain and how to make one, the next thing you will need to learn would be the different types that you can create. Know that there is a good number that you can make and that each of them is made specifically for different types of transactions. Knowing what they are should give you an idea as to which one should be made that fits the situation. So here are a few examples:
- Medical Invoice
- Travel Invoice
- Proforma Invoice
- Service Invoice
- Sales Invoice
- Professional Invoice
- Sports Invoice
Should you wish to know more about the different types that you would like to be able to create, then you simply need to go through our site until you are able to get all of the information you need.
Should you be planning on making an invoice, then know that the standard size for business-related invoices would be 8.5 by 11 inches. You can also decide to go with slightly larger or smaller sizes, but know that it’s best to stick with the standard as it’s the one most commonly used and has been generally accepted by just about everyone.
How do I pay the invoice?
You can do this in four different ways: cash, check, credit card, electronic payments. Both the buyer and the seller can agree about the method before the payment takes place.
Is there a way to extend the due date?
Both the buyer and the seller will need to negotiate in regards to due date should there be any issues on the buyer’s end. If the due date will not be changed and the buyer fails to make the payment, then late fess will be added to the total amount.
What happens if the buyer cannot pay?
This is usually covered in the payment terms. It’s common for the sellers to be given all item that was provided back should the buyer fail to keep his/her end of the agreement.
Although making an invoice may not be all the difficult, you still have to make sure that you can make it well. So long as you are able to make the most out of all the information that has been presented in this article, then you should not have to worry about making your own quality invoice.