How to Make a Simple Invoice in Microsoft Office Word
As much as possible, you want to be efficient in your business operations, try to cut costs, and save valuable time. You would probably wonder how to get these things done all at once. According to Forbes Magazine, your business will highly benefit if you would do every transaction through electronics. That said, sending out electronic invoices will likely reduce clutter and the influx of emails.
If you want your business to succeed, you have to be equipped. So, we made a list to help you make a simple invoice in Microsoft Office Word. Read below and get started with your invoice.
1. Begin with the Basics
Primary information such as your business name, contact information, and invoice number are important parts of the document. Include these details makes your invoice looks professional. Also, you can insert your company logo.
2. Include Payment Terms
The compensation from your clients or customers may depend on the type of payment term your business uses. Before incorporating a payment method, make sure you research about the three main types of payment terms. Choose a payment term and include it in the simple invoice.
3. Provide the Product or Service Details
To avoid confusing your clients or customer about how much money they owe you, make sure to be specific with the description, quantity, rate, amount, and subtotal of the products and services. A complete invoice is a better sample invoice, so make sure to include as many relevant details as possible.
4. Add Notes
Adding personalized notes for your receiver can be a small gesture, but it can create a bigger impact. Making notes for your clients will likely make the invoice paid faster. Also, you can provide relevant instructions, information, or details for the invoice.
What Is An Invoice and What Is It Used For?
An invoice is a business document that makes a list of products or services that a client or customer needs to pay. Also, businesses use an invoice as a reminder for their clients about the payment they need to pay. More often than not, businesses send out an invoice through electronic processes. More so, if a business does not provide an invoice, it has no document for every sales transaction.
What Is the Best Invoice Template?
You can download the best invoice template from a reliable source. There are a lot of online template sources; however, you need to assess their ratings and review before purchasing a template.
Why Does a Business Need an Invoice?
A business needs an invoice to help in the recording of sales, tracking inventory, monitoring cash flow, and accounting business return. An invoice can also help the business in paying taxes since it keeps a record of every sales transaction.
What Is the Difference Between an Invoice and a Receipt?
An invoice and receipt are not interchangeable terms because these documents are different from each other. An invoice contains the payment terms for a service or a product that you haven't received but considered as a purchase. On the other hand, a receipt is an acknowledgment of the product and service you have on hand.
Is An Invoice a Bill?
An invoice is not proof of payment; rather, it is a notification for a payment you owe from a business while a bill contains a statement of the amount of money you owe for goods or service rendered.