After you know how to create an invoice, you have to learn how to create different types of invoices for the different types of industries you will be billing. Don’t worry, it’s easier than you might think. Let’s take a look at some of the different types of invoices from several different industries and how to create an invoice for your activity or industry.
There are several different industries in this world, including education, retail, agriculture, manufacturing, real estate, finance, healthcare, and transporting, among several others. These industries will all have different needs when it comes to their billing systems. If you are invoicing to one, or more, of them you will have to meet those needs via the invoice in order to get paid properly.
Invoice types: different invoices for different industry needs
A standard invoice, which includes all of the basic information – including contact information, invoice number and date, a detailed list of services completed or products purchased, subtotal, fees and taxes, and a total amount owed – works for basic sales and basic needs, and works for several industries including retail, agriculture, wholesale, among many others. This is the invoice we imagine when people speak about invoices.
But a commercial invoice, for example, is a little bit different. Businesses use commercial invoices for documentation of any foreign trade, such as products being shipped overseas. The commercial invoice is used for customs declaration when the shipment crosses an international border. A commercial invoice includes the names and addresses of both parties involved, the items that are being sold, the cost of the items, the amount of tax payable, the carrier identification number, the country of origin, the code for each item, proof that the invoice is authentic, and the signature in charge of the transaction.
Then, there is the timesheet invoice. Professionals whose work is measured by the hours, or amount of time worked usually send timesheet invoices. For example, consultants, therapists, lawyers or teachers usually use timesheet invoices. More generally, any profession that requires intellectual work more than technical work use timesheet invoice. These invoices usually mention the amount of time instead of the number of products.
Next is a utility invoice, and this is what we all receive and refer to as the electric bill, the telephone bill, or anything similar. Utility invoices often reflect the billing period, and clearly outline when the money is due, and the late fee if it is not paid by a certain date.
Invoices related to the status or progress of the project
Next is a progress invoice. The progress invoice is used in works that stretch over a long period of time; mostly in the construction industry. Contractors will send progress invoices from time to time that show the progress of the project, along with the amount required to be paid to them because they must pay the employees, and cover any expenses in order for the project to continue.
Then, there is a pending invoice, which shows a pending payment; the outstanding amount is presented in the pending invoice. The procedure continues until the client makes a full payment.
Different ways to bill your work or product
The next type is value-based billing, which is based on the services provided to the client, instead of the time taken to complete the project. Value-based invoicing is more client-based, and the fee is determined prior to the work being performed.
There is also fixed-bid billing, which is best suited for projects with well-defined requirements, as it is easier to determine the cost on these types of jobs. This type of invoice is often beneficial for freelancing or small businesses.
And last, but not least, there is time-based billing. Time-based billing is based on a charge per hour, and works best for creative jobs.
Now that we’ve covered invoices for different industries, let’s have a look at invoices for your industry.
More information on creating an invoice for specific businesses
Invoice for services
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