What Is an Invoice?
An invoice is a statement of quantity, description, and the price of the products sold. Different business requires different types of invoices. Some examples are proposal invoices, interim invoices, timesheet invoices, recurring invoices, final invoices, and past-due invoices. Having the right one gives you a solid handle on your finances, leading you to the success of your business.
How to Create a Professional Invoice
Invoices play a huge part in your business. Proper invoicing process is crucial to manage your accounting because they're a great help in tracking payments from your customers. Not having one is being unprofessional. How will you know if your customer has paid for your product or not? Many entrepreneurs failed in business because of poor financial management. A study made by Bradley III (2019) from CiteSeer shows that poor cash flow and poor record keeping are one of the specific causes and greatest indicator of business failure that leads to bankruptcy.
1. Insert Your Business Details
Since you are selling, you need people to know what you have. Insert your business details in your invoice to inform them who you are. Emphasize your logo to brand it to your customers' mind. Never forget to place your contact details so that your customers will know how to contact you.
2. Provide Your Customer's Information
To keep track who you are transacting with, provide the name of your customer together with the rest of their details in your order invoice. This will help you identify who your best customers are. This will also help you create a statistic on where you sell the most and least, helping you create an efficient plan to better market your product.
3. Include Your Invoice Number
Sales invoice numbers are very important; never neglect them. These numbers help you track and identify each payment given to you. They are commonly written in big bold numbers, preferably red to make them visible to your sight. Decide on how you want your invoice number to look like. It can have a numerical arrangement or a year, month, and date basis. Just make sure to be sequential to avoid confusion.
4. Specify Your Terms of Payment
Products are paid in different ways. Now it can be paid through credit cards, checks, cash, or in another type of payment. Money is a very valuable thing to your customers and not having a specific way of payment can deter them from buying from you. Specify your term of payment to avoid confusion to both you and your customers.
5. Chart Your Sold Products
Whatever your customers are buying, you still need to indicate what those products are. Provide a wide space for your clients to place their order in an orderly fashion. Remember to review for discrepancies and always be legible on your transaction before proceeding to the payment to avoid delays and unnecessary refunds.
6. Add Other Information
Consider adding other information you want to tell your customer about your accounting invoice. This may include your return and exchange policy, your terms and conditions, or maybe at least a thank-you note for them. This is commonly the last part your customer sees; giving them this awareness will surely be appreciated by them.