Invoice creating is important for several reasons. An invoice is more than a mere bill; it’s a formal record that outlines the terms of a financial agreement between two parties.
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In this post, you will learn how to create a perfect invoice, understand its importance, key components, and best practices.
Understanding the Essence of an Invoice
Before we create this important document, let’s understand the essence. An invoice is a written record that serves three primary functions:
- Billing: An invoice is a formal request for payment. It conveys to your client or customer the amount they owe for products or services rendered.
- Legal Document: In the event of disputes or legal matters, an invoice acts as a crucial piece of evidence. It outlines the terms and conditions agreed upon by both parties.
- Record-Keeping: Invoices are indispensable for financial record-keeping. They help you maintain a clear account of your transactions, making tax filing and financial planning easier.
Key Components
Make sure your invoice should contain the following key components:
- Header Information:
- Your business name and contact information
- Invoice date
- A unique invoice number
- Client Information:
- Client’s name and contact details
- If applicable, the client’s purchase order number
- Description of Products/Services:
- A detailed list of products or services provided
- Quantity, unit price, and total cost for each item
- Payment Terms:
- Clear and concise payment terms, including due date
- Accepted payment methods
- Total Amount Due:
- Subtotal
- Taxes, if applicable
- Grand total
- Additional Information:
- Any special terms or notes
- Late payment penalties, if relevant
Best Practices for Creating Invoice
Now that we understand the components, let’s explore some best practices for creating a perfect invoice:
- Professional Formatting: Your invoice should have a professional, clean, and consistent design. It reflects positively on your business.
- Clarity: Ensure that all information is clear and easy to read. Avoid jargon or technical terms that your client may not understand.
- Accuracy: Double-check all details for accuracy. Mistakes can lead to payment delays or disputes.
- Consistency: Use the same formatting and terminology on all your invoices to maintain brand consistency.
- Promptness: Send invoices promptly after completing the work. This ensures your client has all the necessary information for payment.
- Follow Up: If the due date passes and payment is not received, don’t hesitate to send friendly reminders. Maintaining open communication is crucial.
- Secure Delivery: Use secure methods for sending digital invoices to protect sensitive information.
- Digital Records: Maintain digital records of all your invoices for easy access and future reference.
Samples
Now, you know invoice or bill is written by a company who sends its customers’ orders. Make sure you write it in triplicate in the following manner, namely:
- The original copy being marked as ORIGINAL FOR BUYER;
- The duplicate copy being marked as DUPLICATE FOR TRANSPORTER;
- The triplicate copy being marked as TRIPLICATE FOR ASSESSEE.
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| D Diamond Spare parts Machinery Industries & Electrical Serv Orchard Road 21, Singapore Tlp. 64-6111 222 Customer Name :………………………………………… Address :………………………………………… ………………………………………… ………………………………………… City :……………………………………….. Phone :………………………………………. | INVOICE No. :……………………… Date :……………………… Order No. :……………………… Rep :………………………. POB :………………………… | | Quantity | Description | Unit Price | Total | | | | | | | TOTAL | | Payment Detail Best Regard, Cash Cheque / Bilyet Giro Transfer to ( ___________) |
Download the Invoice Sample here.
Template
There are a lot of templates we can use for our business. Try to make our bill easy to read and understand. Even, we can create our own template to suit our own company’s need. Before we see the template, let’s see some of the terminology concerning invoice:
- P.O. Number : Purchase Order Number
- P&P : Postage & Packaging
- F.O.B. : Freight/Free On Board
- Reps : Representatives ( sales representatives / salespersons )
The followings are free templates we provide for you.
Simple Template
This simple template can be used by our company in a flexible way. We do not have to fill out all the questions in the form. It depends on our company’s needs and necessities.
(Company Name)
Company Address
INVOICE Invoice Number : …………………………………………………………………………………………… Date : …………………………………………………………………………………………….. To : ………………( Name ) ………………………………………………………………… Company : ………………( Company Name ) …………………………………………………… Street Address : ………………………………………………………………………………………….. City,Province/State: ………………………………………………………………………………………….. Zip Code/Phone/Fax: ………………………………………………………………………………………….. Ship To : ………………( Name ) ………………………………………………………………. Company : ………………( Company Name ) ………………………………………………….. Street Address : ………………………………………………………………………………………….. City, Province/State: ………………………………………………………………………………………….. Zip Code/Phone/Fax: …………………………………………………………………………………………. Salesperson : ………………………………………………………………………
P.O. Number : ……………………………………………………………………..
Requisitioner : …………………………………………………………………….
Shipped Via : …………………………………………………………………….
F.O.B. Point : …………………………………………………………………….
Terms : ……………………………………………………………………. | | Quantity | Description | Unit Price | Total | | | | | | | | | | | | | | | Sub Total
Sales Tax
Shipping & Handling
Total Due | ………………………………….
………………………………….
………………………………….
…………………………………. | Make all checks payable to ( Your Company Name )
Payment is due within …. days.
Should you need further information concerning this invoice, please contact (Name, e-mail, phone number ). | Thank you for business with us. |
Word Template
This following template can be made in Word or many other word processors. You can also make it in Excel if you like.
| Your Company Name Street Address: …………………… City : …………………… State/Province : ………………….. Country : ………………….. Phone & Fax : ………………….. | INVOICE Invoice # …………………….. Date : …………………….. | | Billing Address Name :……………………. Company : …………………… Street Address: ……………………. City : …………………… State/Province : ………………….. Country : …………………… Phone & Fax : ………………….. | Delivery Address Name :……………………. Company : …………………… Street Address: ……………………. City : ……………………. State/Province : …………………… Country : …………………… Phone & Fax : ………………….. | | Salespersons | P.O. Number | Sent Date | Sent Via | F.O.B. Point | Terms | | | | | | | | Quantity | Description | Unit Price | Total | | | | | | | | | | | | | | | Sub Total
Sales Tax
Shipping & Handling
Total Due | …………………
………………….
………………….
…………………… | Make all checks payable to ( Your Company Name )
Payment is due within …. days.
Should you need further information concerning this invoice, please contact ( Name, e-mail, phone number ). | Thank you for business with us. |
Invoice Pdf for Excel
Blank Template PDF
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Blank Template for Excel
Hotel Template
This hotel template can be used if you work on Microsoft Excel or Google Sheets.
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Photography Template PDF
The following template is designed for photography business. However, you can also use it for other business as long as you make a little change to it.
Sales Invoice Template
Service Invoice Template
This template can be used if you work on Microsoft Excel or Google Sheets.
Download the Service Template here.
Word Invoice Template
You can use this template if you work on Microsoft word or Google Docs.
Download the Word Template here.
To Remember
An invoice is more than just a piece of paper or a digital file. It is a formal record that holds the key to your business’s financial health. Creating a perfect one requires attention to detail, professionalism, and adherence to best practices. By mastering the creation of invoices, you not only facilitate the payment process but also establish a strong foundation for successful business relationships.
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