Helpful Tips to Add Shipping, Discounts, And Taxes to Invoices


Adding details such as shipping, discounts, and taxes to your invoice is not just important to your client paying you on time but is also required as per regulations. In addition, having these details specified on the invoice goes a long way in helping you with business expense tracking.

Here are some tips to enabling you to add shipping, discounts, and taxes details in your invoices so that the customers are clear about the invoice break-up, helping you get your money faster.

For taxes

Determine all the applicable taxes beforehand
In India, since tax codes vary from state to state; ensure you collect the tax before adding the tax column to your invoice. For instance, some states only require taxes to be collected from businesses that are registered there. Also, if you are working remotely, you need to check the rate at which your service is taxed in that state. Besides, you may even require a permit before you can add a state’s taxes to your invoice.

Create clear subtotals
The same invoice may have items that are both taxable and non-taxable. In your invoice, if you have items that are taxed at different rates or do not carry a tax, it is prudent to have subtotals for each tax group.

Keep track and remit the taxes
Every time a client or a buyer makes a payment, make a note of it so that you can pay the right amount of sales tax on the invoice when it is due.

    Also Read: Top Benefits of Using a Free Invoice Tool

For discounts

• Figure out what kind of discount you want to give
There are a variety of discounts you can offer to your customers to incentivize brand loyalty. For instance, you can provide student discounts if a substantial portion of your customers fall under that category. Further, you can offer seasonal discounts, loyalty discounts, cash discounts and a discount for even ordering in bulk.

• Be clear on what all products the discounts can be applied to
With cloud-based invoicing software, you have the option of applying discounts to specific items or all of the items or services being purchased. This removes ambiguity and consequently fosters customer trust.

For shipping

• Add all the relevant details
Right at the beginning of the invoice, you need to specify your businesses’ name and address. Further, you need to add the name and contact details of the person to whom your product is being shipped. For record-keeping, you need to include the order number and any other reference numbers that may be required.

Aside from this, make sure that you specify what you are shipping, how much of it you are shipping, a brief description of the product, price per unit and also the total price. To prevent your customers from getting any nasty surprises, you also need to add the various miscellaneous charges involved in the shipping.

Most importantly, have an invoice number at the top for your accounts department to keep track of payments.

• Have a place for the customer’s signature in the invoice
To ensure that your customers are fine with the amount specified on the invoice and your terms and conditions in your shipping invoice for customs, including the last day to pay your invoice, have a designated space for your customers to sign.

• Payment options
Remember to add a note about the different payment methods that you accept to ensure the customer can clear your invoice conveniently.

    Also Read: How to Take the Stress Out of Tax Time

With invoicing software, such as CloudBooks, you no longer have to worry about manually preparing the shipping cost invoice, showing discounts on your invoice, and making the tax details clear every single time. You can automate the work of adding these details in your invoice for your client, saving precious time and money.

8 Reasons to Start Using Online Invoicing Software


What would you say if I told you that invoicing could be one of the easiest and seamless processes ever? Yes! You read it right. With online invoicing software, you can make invoicing a woe and anxiety-free process. It is not easy to keep small businesses running smoothly when invoicing itself consumes a major chunk of time and manual resources. That is why the best online invoicing software aims to simplify invoicing for small business, among other things. Not sure yet? Here’s our list of the most compelling reasons to start using online invoicing software now:

1. Make invoicing completely paper-free
Globally, most companies—big and small—are working towards a sustainable future that includes a paper-free environment. Start today and you will not only be doing your bit for the environment but will also be cutting down a significant expense on office stationery. With free online invoicing software, you can save the money spent on paper invoices and completely shift to an e-invoicing system.

Besides, paper invoices and financial documents need to be stored, filed, archived and indexed physically, which requires time and manual effort. Instead, you can use online files that can be found in the system network within seconds by using online invoicing software. They are also secure and accessible from pretty much anywhere.

    Also Read: 5 Common Questions About Online Invoice Software Answered

2. Create custom invoices for small businesses
Online invoicing software allows you to create custom invoices for all business needs. Creating a recipe for success for a small business is not easy and when you are overworked dealing with client’s invoice requests, focusing on business growth can get difficult. But, with a simple online invoicing software, you can create custom-made, professional-looking invoices in a matter of minutes. From format adjustments to adding branding elements to addressing client requests, invoice software for small business can do it all.

3. Ensure error-free invoicing
The one thing that causes major trouble in bookkeeping is administrative errors. However, such issues can be made a matter of past by switching to the right online invoicing software. It not only computes on point but also cross-checks customer information and blank spaces. Plus, you need not re-enter information every time you create an invoice. Just enter the information once and save it for future use, making it easier to track and fix any discrepancy in information.

4. Alerts and reminders
With online invoicing software, you can set up payment reminders for your clients and update reminders for yourself. This can include any delay reminders or alerts for upcoming invoices.

5. Online invoicing software offers thorough automation
Generating the same invoice for a client time and again is known as a recurring invoice. It can be thoroughly automated using online invoicing software, thus reducing the manual effort that goes behind it every time it is produced. All you need to do is enter the basic details of the client and cost of the service or goods exchanged and set up the software to generate fresh invoices periodically and send them to the concerned party.

6. Convert quotes into invoices
Online invoicing software allows users to create quote invoices. Say, you want to get some quote approved by your clients, you can share it in the same format as an invoice using the free online invoicing software. Once the quote is approved by the client, it gets immediately converted into a workable, professional invoice.

    Also Read: Every Sole Trader Should Use These Free Invoice Software

7. Multiple payment channels right on the invoice
There is a way to make payments easy for your clients. By setting up multiple payment channels directly on the invoice, you can ensure your clients pay up quickly and conveniently. Using online invoicing software, you can plug any number of payment channels directly on the invoice without any hassles or extra efforts.

8. Generate invoices anytime, from anywhere and on any device
Whether it is the work desktop or your smartphone, online invoicing software are accessible on any device connected to the internet. You just have to log in using your username and password and you can access the information on the database. You can even create and share invoices on the go.

Top Reasons for Freelancers to Choose Invoicing Software Over Excel or Word

choose invoicing software over Excel or Word

Unlike those who are associated with one employer or a single client, freelancers have to manage many accounts with multiple clients for work done for different periods of time. These can be weekly, fortnightly or even monthly accounts. These accounts are crucial in assessing how much work is done and calculating remuneration for the same. Two of the most popular platforms for such bookkeeping are Microsoft Excel and Microsoft Word. However, neither is solely meant for invoicing purpose.

Invoicing is much more than the invoice template Excel offers. Even the free printable invoice template Microsoft Word has does not get the task done. Templates are only the first step in the invoicing process. Even if you procure a basic invoice template free of cost, you will still be spending a lot of time and effort in creating the invoice. Generating invoices using Word or Excel templates require great attention to detail, a knack for numbers, skill to work with the software and most importantly, a great deal of time.

Usually known as smart workers, why should freelancers not make the best of the smart invoicing software available online. Some of the best free invoicing software for freelancers can help them save time and money. Invoicing software is gradually picking up pace among professional freelancers working across sectors and industries. Here’s why:

    Also Read: Why Invoicing Software is Better Than Invoicing Templates?

1. Efficient and easy to use
The struggle with Word and Excel is real. And, if your field of work does not need you to use them, then the effort to get trained in using them can be herculean. However, if the purpose is to manage invoices better, then relying on dedicated software makes more sense. To use online invoice software, you just need to get a hang of basic online tools. Online invoice software offers an intuitive interface and a robust platform that can be used by anybody. Since these are created for work burden and time reduction, it ensures ease of use. Completely free from any administrative errors, free invoicing software offers freelancers an easy-to-use platform that creates professional-looking invoices in seconds. From quotes to customised themes to payment channels, invoices generated using online invoice software has them all.

2. Includes automation
How many freelancers today invest in a standalone accountant to create invoices without any queries or interference? Probably, few. And, how much would such an accountant cost per hour? Surely, a lot. With invoicing software, you can automate invoicing in a few simple steps. How many recurring invoices are you creating in a month or a week? You can simply hand these over to your online invoice software and it will take care of it from start to end. Most freelancers tend to work with their clients more than once, especially if their services involve multiple assignments. In such situations, some clients may even request recurring invoices. You can save your precious time and efforts by outsourcing this job to online invoice software which will not only create recurring invoices automatically for clients but will also send them to the designated parties. Plus, it will follow up on the payment schedules and send payment reminders in the case of a delay; all this while keeping you updated.

3. Easy access and secure
Online invoice software generally uses a cloud-based database to store the data. It means the data and software can be accessed from anywhere, at any time and on any internet-connected mobile device such as a smartphone, tab or laptop. Further, online invoice software offers multi-platform applications allowing users to create invoices on the go. Unlike the Word and Excel sheets, online invoice software stores data on a secure server and can be accessed only by authorised users.

    Also Read: Here is How Free Invoice Software Can Help You Overcome Remote Work Challenges?

4: Offers customisation
Customising an invoice template in Excel takes a lot of time. If you want to tweak the design and incorporate branding elements, it might take even more time. However, that is not the case with online invoice software as it skips all the fuss and goes straight to customisation regardless of what template you use. Even a free invoicing software offers a basic invoice template free. But with invoicing software, this template is customisable. You can pick and choose the colour scheme you like and add your branding elements and logo the way you want. Most importantly, it allows you to create policy-compliant invoices by tweaking the format.

The need to generate accurate and professional-looking invoices is not limited to businesses and companies but is just as important for individuals and freelancers who wish to compete with the best in the industry. Be smart and switch to online invoice software so that you can shift your efforts from carrying out administrative tasks to establishing your brand and growing as a freelancer.