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What Is a Simple Invoice?
An invoice is not similar to a bill or a receipt. These may seem similar but the documents serve different purposes. To set things clear, a bill is an amount of money owed for goods supplied or services rendered, set out in a printed or written statement of charges. And a receipt is issued after a transaction and acts as documentation for the buyer that the amount of the merchandise has been paid. On the contrary, an invoice is issued prior to the payment and is used to track the sales of goods or services.
How to Make a Simple Invoice
In making an invoice, don't get confused with the elements that can be found in bills and receipts. Though commercial invoice has similar elements from a bill and receipt, remember that it is a different document, so it serves a different purpose. To start with, take note of these elements that are part of effective invoices; this includes a header, identifier number, company information, date, items sold, fees or taxes, the total amount due, terms of the transaction, a message on the invoice, and lastly, the due date. More or less these are the components of a simple invoice. Here's a guide to help you put up these components and make an actual invoice document.
1. Choose a Template
One of the easiest ways to make a document is to have templates rather than doing it from scratch or starting from a blank slate. Before starting the sales invoice material, see to it you have prepared the rates of the products or services so it is billable. This refers to the resources that can be billed to clients.
2. Fill Out the Template
In filling out the business invoice template, refer to the components that are needed in your document. These are a header, identifier number, company information, date, items sold, fees or taxes, the total amount due, terms of the transaction, a message on the invoice, and lastly, the due date. You may also refer to old invoices if you have so you can be guided where to place the components.
3. View Draft Invoice
After placing all of the essential components in your service invoice document, the document is now drafted. In this point, you can specify important details like due date and taxes. Though you can send your invoice right away, you still can opt to save it and send it later.
4. Finalize Invoice
See to it that every information in your invoice is correct. Proofread the invoice to check spelling errors. Make your invoice reliable because it is an official document. You are not likely to check on the billable resources yet because it will depend on a transaction with a client. But make sure that the rates of your goods and services are fixed and ready.
5. Save Invoice
Save your finished sample invoice template and send it later when needed.