What Is an Invoice?
An invoice or a bill is a statement consisting of goods or services a consumer bought from a seller. It consists of the buyer and seller's name; items bought, its quantities, special discounts (if applicable), mode of payment, and mode of transport. A lot of people may be confused between an invoice and a receipt. An invoice is sent to the consumer before purchase while the buyer receives the printed receipt after making a purchase. The receipt and invoice are both handled by the Accounting Department.
Of all the invoices, 90% are still non-electronically handled. This will cause a delay in keeping track of the cash flow. Invoices cost businesses much. That's why companies should use accounting software for commercial invoicing purposes.
How to Create an Invoice?
Your invoice should contain concise, yet accurate information. To create an uncomplicated invoice, read through our list below.
1. Make Use of Our Templates
If your business is a neophyte in the industry, there are twists and turns that you know nothing about. Crafting a sales invoice is probably one of your problems. To spare you from the difficulty of making one, download one of our Invoice Templates. These are modifiable to cater to your business needs.
2. Provide Your Company Details
It's crucial to provide your company details such as your company logo, name, address, and contact information. It adds professionalism to your transactions, and it exhibits your branding. Do not forget your contact information because your customers might have possible inquiries regarding your sale.
3. Provide the Information of Your Buyer
Provide your buyer's information for when you have clarifications to make with your buyer regarding the transaction. Exhaust all possible contact information such as their phone number, email address, and the home address. Make sure to review if they are providing accurate information.
4. Enlist the Goods Purchased
These are the descriptive items bought, quantity, price, special discounts (if applicable), and subtotal. The more specific you are with the information you provide, the better it is for your consumers to understand.
5. Add Sequential Numbering
Sequential numberings are what helps you keep track of the whereabouts of the invoice. To help you generate a unique sequential numbering, you may begin with a project number or a customer number. You can check the status of your invoice through the use of sequential numbering. This is also helpful when computing for taxes.
6. Indicate the Due Date
This is where you indicate the final date of payment. Be professional yet straightforward about your terms of payment. It should be stated in a manner that is understandable by your customers. You may send a text message or a written notice as a reminder about the payment deadline.
How you deliver your invoice to a customer speaks a lot about your company. Incorrect information on the invoice may cost you your credibility and future customers. Review everything in the invoice before sending it to the customer. Do it right the first time.