How to Make a Simple Invoice in Microsoft Excel
According to AP Statistics, the average cost of producing invoices is between $4.47 - $11.00. This number is nothing compared to the convenience and security that invoices give to entrepreneurs— whether freelance, self-employed, or small-scale. So, if you wanted to secure your business immediately and wanted to start making your basic invoice, here are some few tips:
1. Be Straightforward
To jumpstart your invoice journey, you need to take note that invoices are made for the purchasers to pay in time, so make it understandable and straightforward. Make a list of every order and sort them accordingly. For instance, if your customer ordered kitchen furniture, you need to present the orders in a way that customers would immediately know what they are.
2. Present Terms of Payment
As invoices serve as a reminder for customers to pay for their order, you need to present some payment terms. But, you need to consider that not every customer pays on the said date. According to statistics, 32% of invoices are paid late. So, expect to shorten the payment terms if you urgently need the payment.
3. Include Payment Methods
With the terms presented, you would also need to include payment methods. Make it easier for your customers and give them options by including 2-3 payment methods in your simple invoice. In this way, your customers can pay in a convenient and familiar way.
4. Insert Incentives and Discounts
Unlike a blank invoice, it would be preferable to lay out incentives for those who pay early. Your purchasers might be encouraged if you would reward them a token of gratitude for settling their payments early. To do this, you need to decide the time frame for the incentives and decide the percent of discount.
5. Indicate Late Payment Charges
Of course, it would be convenient for you if you would include charges for late payments. Either way, you are issuing an invoice to give notice to the customers to pay you on time, so late payment charges are reasonable. But, take note that you might receive tons of vocal feedback, especially to those people who pay late habitually.
What Is an Invoice?
An invoice is a paper or electronic document that contains the list of the purchase orders of a consumer. It also states the sum of the due and how the payment will be settled.
What Goes in an Invoice?
Your invoice must include various sections needed for it. Include your:
- Company Name
- Contact Information
- Customer’s Company Name
- Customer’s Company Address
- Order Descriptions
- Date of Goods Provided
What Is the Difference Between an Invoice and a Receipt?
Invoice is not a receipt and vice versa. While they are both paper and electronic strips, they differ in purpose. Invoice is issued by the seller to request payments to the buyers while receipts are proof of payment.
Are Invoices Legal Documents?
Invoices are not legal documents on their own. Due to the fact that it can easily be manipulated, invoices are not considered legally binding documents.
Can Anyone Make an Invoice?
Anyone can make and issue an invoice for anyone. The fact that entrepreneurs that are not registered in HMRC do not mean they are not entrepreneurs.