What is an Invoice?
An invoice is a business document presented by the seller to the buyer during a transaction. It contains a detailed list of all the goods and/or services and other details related to the transaction such as the amount that has yet to be paid and the payment deadline. The purpose of the invoice is to point out exactly what it is that the buyer owes for whatever has been provided. This means that they are usually sent before a transaction is concluded.
How to Create an Invoice in Excel
1. Start With the Company Information
An invoice must always have information on the company that is responsible for issuing it. You basically have to place the company's name, address, phone number and email address. It is also best to include the company logo as doing so is good for spreading the brand.
2. Place the Invoice Date, Due Date, and Invoice Number
All three pieces of information can be used to help keep track of a particular transaction with a client. When writing down both the invoice date and the date in which payment is due, be sure to include the month, day, and year. As for the invoice number, always check that each business invoice document has its own unique one as having two with the same number can cause problems.
3. Put in Information About Recipient
To ensure that the invoice makes its way to the right individual or business, you'll have to put in the right information. Place the intended recipient's complete name, address, shipping address, and contact details. If you're sending the commercial invoice to a company, then be sure to include the company's name and complete address.
4. Provide Item Details
Every professional business or service invoice must have a list of the goods/services that have been provided to the client. The standard format is for you to place information on the quantity, the item number, the full legal description of each one, the unit price and the total amount.
5. Put in the Payment Details
Here is where you must first calculate the subtotal and then place it into the invoice document. Then you will need to factor in the taxes, discounts, and any fees that you will either add or subtract from the subtotal in order to get the total amount that needs to be paid. Proceed to point out the payment schedule and the different methods that the buyer is allowed to use. The more options available, the higher the chance of being paid on time. Lastly, provide details on who the client needs to pay. When doing this, include the name of the individual or business, address, and any other necessary information such as bank codes.
6. Use Microsoft Excel
Using Microsoft Excel is one of the more convenient methods of making an invoice. This is due to the multiple options available when choosing how the information should be presented as well as how accessible the program is. So whether you're planning to use an invoice template or starting from scratch with a blank one, Microsoft Excel is definitely one of the best programs to use.