An invoice is a document or a notice that is sent from a vendor or a company to a client that owes money for products purchased or services completed. An invoice outlines the details of these products or services, along with when they were completed or purchased, and how much the client owes for each item or service. You will find below additional information on how to create an invoice.
You will want your invoices to look professional, and if you have to make several invoices because of your business, you will want to make sure all of your invoices look the same to show consistency.
What should you include in an invoice?
1. Invoice Header
Start creating your invoice by making a header that reflects your business name, or if you are a contractor working for yourself, simply put your first and last name at the top. Use a professional-looking font such as Times New Roman or Arial. If you have a logo, feel free to include it in the header, to the left or the right of your business name. If you don’t have a logo, not to worry.
2. Address and Contact information
Next, include the address and contact information where you would expect the payment. Make the address smaller than the header, but center it so it’s still easy to see. You can make the address on several lines, for example:
City, State, Zipcode
Next, include the recipient’s address and contact information. This should be on the left side of the invoice, below the header, and also on several different lines. If you are sending the invoice to a person and not necessarily a business, simply put the person’s name. If you don’t have a physical address and are sending it via email, you can put the recipient’s email address instead.
3. Invoice Reference
Next, you’ll start to include the invoice-specific information. Start with the invoice number. This should be a numbering system you create for yourself in order to keep track of all the invoices you send. It could be based on the client, the date, or simply in numerical order, such as 0001, and then 0002., etc. Then, include the invoice date, along with the date the invoice is due (anywhere from 21 to 45 days).
4. List of items and totals
Then, list the items for which money is due. It may be easiest to make a chart or a spreadsheet that includes services/products, date, quantity/hours, rate, and subtotal. Each line item should appear on a separate line within the invoice.
Once you have the subtotal, list any taxes, fees, or other monetary amounts owed, calculate the final total that is owed. Make sure the total is bold or highlighted, so it stands out among the other numbers in the list. Finally, provide any additional information that might be needed, such as a return policy if products were purchased, additional payment information such as a PayPal username, or text surrounding any late payment fees.
Why should you use an invoice software?
Although it’s easy to create an invoice by hand, or even using word processing software, you can also create invoices using software created especially for invoices, and some companies, such as Shopify, offer free online invoice generators that are simple and easy to use for your e-commerce.
Using an invoice generator such as Yes Invoice allows you to simply fill in the necessary information – such as name, email address, address, date, invoice number, description of the items being charged, and the amount owed – using a form. You can then print your invoice, or email it directly to your client. Many online invoice generators will also allow you to upload a logo and add extra information that will make the invoice look as custom, and as professional as you wish.
Steps to create a professional invoice
Find more detailed information on the steps to create a professional invoice
Create an invoice for your activity
Invoices are different for each industry. Find out more on how to create an invoice for your business activity
How to format an invoice
Finally, the way you format your invoice is very important as it represent your business with your clients. Find out more on best practices to format an invoice.