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What is an Invoice?

An electronic or printed invoice is an instrument issued by a seller to itemize the quantity and quality of items sold. This includes the date of shipment, mode of transportation, price, and the terms of payment. Basically, this is a bill that demands payment from your buyer.

How to Write an Invoice in Adobe Photoshop

Writing a clean and legible invoice is a great help to your business. An invoice may just be a paper, but this paper contains all the details your recipient is paying. Collecting business invoices over time keeps track of your paid and unpaid invoices; a process you do to avoid running out of business in the future.

1. Provide Your Business Information

You want people to know your business. To do that, you must put your basic business information on the paper. Brand your invoice together with your contact details, and don't forget your business logo. You are giving a copy of your invoice to your recipient, so you might as well tell them who you are through your invoice. This is one simple advertising strategy you can do out there.

2. Write Your Recipient's Information

Allocate space for your recipients' information and write their contact details to know who you are transacting with. This would help you keep track of who your regular customers and new customers are. In addition, it is inevitable to have late-paying customers. Their contact information in your payment agreement is a great help in tracing their payment and whereabouts, especially when their bill is already long due to the agreed payment date.

3. Write Your Invoice Number

Your order invoice number will serve as your tracking number for each payment made by your recipients. You may indicate your invoice number at the top part of your invoice to give it a clear view. It's preferable to write it in big, bold, and red numbers to make it easily detectable. You may choose the numbering of your invoice. It can be in a numerical arrangement like 1, 2, 3, 4 or you can use a year, month, and date basis like 20190628. What matters is to be sequential to avoid confusion on your part.

4. Specify Your Payment Terms

There are many ways to pay a certain product nowadays; it's not limited to physical cash. Your customers may pay it through cash, check, credit cards, and other types of payment. Be sure not to make your terms of payment or payment schedule too broad and too vague. Specify and limit it to what you think is preferable and convenient to both you and your customer.

5. Itemized Sold Products

The next thing to do is to properly itemize every last detail of your sold products. Be accurate with your information, then total the amount to be paid. Never forget to be legible with your commercial invoice and be professional. Most importantly, review your invoice for discrepancies before you hand them to your recipients. You would not want to encounter any problems with your transactions because this would only mean a delay in their payment.

6. Indicate Your Return and Exchange Policy

There are times when your customers wish to cancel items ordered or exchange items they have bought and it's a hassle. But a study from made by Janakiraman, Syrdal & Freling (2015) showed that lenient return policies encourage more product purchase rather than it encourages exchange. So for your convenience, clarify your policies for return and exchange then indicate it in your service invoice to avoid these circumstances.