How to Make a Basic Invoice in Microsoft Word
According to a survey, 49% of small businesses find it hard to follow payments and 46% of them are not getting paid in the said payment date. This dilemma would greatly affect your business, so you must avoid it by making basic invoices. So, if you wanted to make an invoice— whether freelance, self-employed, or corporations— here are some basic tips that you can follow in creating your invoice.
1. Do Not Miss Out Any Information
Avoid presenting a blank invoice and indicate every information that you need to put. You need to indicate important information that your client must be aware of. In that way, this would avoid questions or concerns that your client might have. But if they do, they can easily reach out to you as you have given you enough contact information.
2. Indicate Flexible Payment Terms
As you make your invoice, you need to bear in mind that you wanted to please your customers, so make it better for them by indicating flexible payment terms. In that way, you can please them to pay on time as they have various options on how to pay. You can indicate payment terms, like credit cards, electronic funds, cryptocurrencies, and more.
3. Lay out Payment Terms and Policies
You set the goal to prioritize your customers at all times, so make the policies plausible for them. Set your payment policies with short terms. It is an effective way to make your clients pay in the said date as they would feel the urge to settle their transactions immediately.
4. Design your Invoice
It might hard to believe that the design of your invoice matters, it does. A poorly designed invoice can cause confusion to customers, so design it professionally. Extract ideas and jot it down. Make a sample invoice out of these ideas and judge whether you wanted to keep it or not. For its design, you must include your company’s logo, brand color, invoice number, due date, and personal message.
5. Put Incentives
There are instances wherein your customer is not capable of paying, thus you can use the carrot and stick combo. For the carrot, you can offer incentives, discounts, or coupons to those who pay before or on time. For the stick, indicate penalties for those who cannot pay in the said payment date. If this option won’t work, you can offer a payment plan depending on your customer’s capability to pay. Either way, it is advantageous for you as you will receive your pay no matter what.
What Is an Invoice?
An invoice is a non-negotiable commercial instrument made by the seller to remind and request payments to their customers. This document quantifies the documents sold, date of purchase, and mode of transport.
What Are the Elements of an Invoice?
These are the elements that you can find in an invoice:
- Standout Header
- Unique Identifier
- Company Name
- Goods or Services Sold
- Other Fees
- Total Amount Due
- Terms of Transactions
- Personal Message
- Due Date
What Is an Invoice ID?
An invoice ID is a number generated every after a successful transaction. In every customer, there is a specific ID number even though they ordered small or large purchases.
Why Do You Need an Invoice Number?
Invoice numbers are important, especially in documenting each transaction for tax and accounting purposes. Moreover, it helps the buyers and sellers to track the payment, making it convenient for them to place the order.
What Is the Difference Between a Purchase Order and an Invoice?
Relatively, purchase order and an invoice have a similar yet different use. A purchase order is prepared by the buyer when the goods and services are ordered. An invoice is a document prepared by the seller that includes the request of payment to the seller.