invoice creation is an integral part of running any business, be it big or small. And when done right, it can make a lasting impression on your client. Now, creating professional looking invoices doesn’t have to be hard, as long as you take care of a few things and inculcate them as best practices for invoice generation. You will be able to create better looking invoices that help you get paid quicker.
In fact, it is super easy to generate top notch invoices using online invoice software. They are easy to use, intuitive and allow you two create professional looking invoices in a jiffy.
There are multiple different invoices that you can create depending on your business and the nature of the transaction. You can generate itemized invoices, bills for your service, invoices for monthly retainers etc. Regardless of the format you choose, the standard professional invoice template contains a few important things that you should make a note of:
An invoice should be generated either on a company letterhead or contain important details about your business, starting with the name of the business, of course. Take a subsection of the top of the invoice to add the name of your business and details. Add your logo, and you can maintain a color scheme. This adds to your brand value, and establishes your credibility.
If your business requires you to show some form of certification, do add that right under the name. Any other such bylines that need to be added as per the law should be added right under the name.
While using any invoicing software online, in the top section of the template, right below the name, you should place your contact information. This can include either one or multiple channels of contact. You can also use a standard letter head or personalize the invoices you generate according to the client.
If you want to add a personal touch, you can add contact information of a particular sales person or an employee handling communication with a specific client.
Every invoice contains an invoice number which is unique. Consider this compulsory.
An invoice is a request for payment for the services you provided. It should represent all aspects of payment. Hence, the payment terms or agreement must be clearly stated on the invoice.
Each business has different payment terms, and might even change payment terms for different invoices, depending on the service or the client. These terms generally indicate a due date for a one time service, and the payment cycle for periodic payments.
Any professional invoice template needs to include this. After all, the invoice will be sent out to a client who will use it as a bill. Buyer details like name of the business, or person you are dealing with, and their contact information should be present on the invoice itself.
The purpose of creating and sending an invoice is to request money for a service or product. Of course, the star of the entire show is the services and their rates.
So, mention each service or product with a description, quantity (if applicable), rate, and amount. Make sure you include everything billable, including business expenses, if incurred by you. Every service should contain a brief description as well.
Sum up the amounts for all the services rendered and mention it separately as the total sum (or taxable amount).
The tax amount on each service depends on the nature of the service and the jurisdiction your business comes under. Make sure to crosscheck the relevant information on services with the tax laws. You can use free invoice software to determine the applicable tax and policy regulations for your business.
Add the tax below the sum total, mentioning every little detail like the type of tax and the percentage, and other details. Then, add the tax to the sum total, and mention it at the end. This is the final amount you are requesting.
Also Read: Billing And Invoice Software –Link
If you are offering discounts, be sure to include that in the amount.
Due Date/Overdue Fine
Be sure to add a due date for the payment and the fine (if applicable) in case of any delay in the payment.
To conclude, as long as you keep the above aspects in mind and use reliable invoicing software online, creating accurate invoices that look professional will be a breeze.