How to Make a Sales Invoice in Microsoft Excel
Entrepreneurs must secure invoices to ensure that every purchase made is recorded for recordkeeping. Unfortunately, invoicing can be a pain for others. Just the making, issuing, and distributing of it can be tedious. However, if you want to settle the bill of your customers, you need to do it. To lessen your burden, below are simple tips that you can follow in making your sales invoice.
1. Have a List of Due Dates
Invoices are issued for your customers to settle their pay and to have their official receipt within the given time. With that, you need to have a list of your client’s payment due dates. This would be an advantage for you as your customers would feel compelled to settle their payment. Although it is given that you cannot force someone to pay within the given date, but this would give you a higher possibility of being paid on time.
2. Be Genuine with your Payment Types
As we are on the topic of being paid on time, you need to be genuine with the payment types that you accept. But, you need to consider your client. Remember that for your invoice to be effective, you need to lay out payment types that would be convenient for both of you. Ask them for their preferred payment type and consider it base on your favor.
3. Know the Receiver of the Invoice
Of course, it would be a waste if you issue invoices to the wrong receiver. According to Concur Invoice data, a typical business issues 450 invoices a month and 1.29% of it are duplicated. This would greatly affect mainly on your finances. To avoid it, you must have a checklist of your clients. Include any means of payment information, such as their address, contact information or accounts payable.
4. Include Late Payment Fees
This tip can be a good way to encourage your clients to pay on time. Charge them with flat fees or a percentage whenever payments are settled late. To avoid dispute with your client, you need to be transparent with it in your document and talk it out with your clients. Both can meet halfway in deciding about it.
5. Reward Early Payers
Give your clients a little treat if they pay earlier than the said date. This would also be an effective way to encourage them to pay. Mostly, discounts are used as incentives for those early payers. But, depending as to what sales industry you are in, complement it with your product or service.
What are other types of invoice?
1. Pro Forma Invoice
2. Interim Invoice
3. Recurring Invoice
4. Past Due Invoice
5. Final Invoice
6. Miscellaneous Invoice
What are essential parts of a sales invoice?
2. Invoice Number
3. Company Information
5. List of Goods and Services Sold
6. Other Charges
8. Terms of Transaction
Is a receipt an invoice?
While an invoice is a document requesting for the client to settle their payment, a receipt is issued after the payment has been settled. Although they differ in use, both documents are essential in negotiation.
What is the difference between bill and invoice?
They can be a little confusing, but you can distinguish that there is a difference between a bill and an invoice. A bill is the amount of money owed for goods and services, while an invoice is a list of goods or services rendered with the sum due for payment.