What Is an Invoice?
An invoice is a commercial document that is sent by the seller to the buyer. Its purpose is to provide details of the transaction such as the descriptions of the products and/or services purchased to the terms regarding payment. The client must always be provided with one after being provided with whatever he/she has requested as this acts as the bill of the transaction.
How to Create an Invoice in Word?
1. Choose a Template
To start things off, open Microsoft Word, click on "File" and select "New". From there, all you have to do is to enter the word "invoice" into the search bar that allows you to look through the available templates. All you have to do is to choose the one that you think should use. If there isn't one that you particularly like, you can always choose to download ones that are available online or you can make the invoice from scratch.
2. Place Information on Your Business
The client must always know who he/she is responsible for the invoice's creation. This means that the document must contain your business's complete name, address, phone number, and email address. Also, consider putting in your business logo as that can help out in spreading your brand.
3. List Down the Due Date
Providing a due date means that your clients know that they have a deadline. It helps make sure that the individual or business that provided the products and/or services is paid in a timely manner. Common invoice timeframes offered include 14 days, 30 days, 60 days, and 90 days. However, it makes sense to keep things as short as possible. It's also best that you discuss the matter with the client ahead of time so that he/she will know when exactly the payment has to be made.
4. Point Out the Accepted Payment Types
Even the simples of invoices must make it clear as to how customers are expected to pay what they owe. An effective invoice is one that provides the client with many different methods of payment. Doing so will make it more likely that the client will pay you and on time. The different options that you can provide would be paying via cash, check, credit card, electronic payments, etc. Remember that you want to make it easier for them so that they'll be more inclined to pay.
5. Place Information on the Client
You must know exactly who you are supposed to be sending the invoice to. You'll need to gather the information of the client that you will be placing into the document. If you can send the invoice directly the person that it needs to get to, then there’s a better chance you will get paid faster, and without fuss. So what you will need to include is the client's complete name, contact details, and address. Also, do not forget to include the invoice number as that will be extremely helpful whenever either party needs to bring up the details of the transaction.
6. Share Details on What Has Been Provided
Now comes the part where you will need to use Microsoft Word to insert the table where you'll place what it is that you have provided. Once you have chosen the style of the table, then next is to put in the details. It must have multiple columns that separate each section. Be sure that there is one for the item numbers, product or service descriptions, quantities, individual prices, and amounts. Also, include any taxes that you need to factor into the subtotal so that you can calculate the total amount that needs to be paid.