How to Create an Invoice for Your Small Business

If you are a small business owner, you need to know how to create an invoice. They are essential to helping your business generate income and are also convenient to pay bills as well. Whether you are new to the business world or not, knowing how to create a professional invoice will make you feel comfortable sending them to your clients. Today we will show you what your invoices need so you can improve the overall financial management of your small business.

The Information That Goes on an Invoice

Invoices should be simple and straightforward for the client to easily understand and read. Some key things you need to have there are who it is from, what it is for, what they need to pay, and how you expect to be paid. Do not make it complex because then your client will not understand it and it can cause problems and make questions arise.

Business information: Name, address, phone number, and email should be on there.

Customer information: their name, address, phone number, and email.

Payment terms: list the due date and if you have any late fees associated with payments made after the due date. List the terms to reflect what was agreed to. For example, you can say something like “due immediately upon receipt” or “net 30” (due 30 days after the invoice date).

Payment method: be sure to be clear on the method of payments you accept. List all the ones you accept such as credit card, PayPal, or other online payment services.

Invoice number: you always need to have an invoice number that is unique to each client and each bill. If any questions arise or if there comes a time when you need to match payments to the invoices, it will be easy to find.

Products or services rendered: list the products or services and the date that it was purchased or completed. This should be placed near the bottom of the invoice.

Using an Invoice Template

You can create a template to make the process easier on you, so you do not have to create a new one each time you need to create an invoice. You can use programs like Microsoft Word or Google Doc, accounting software, or more.

After you have filled out your invoice, you have several options on how you can send it. You can print it off and mail it, fax it, or email it. If you use an accounting software it will email the invoice for you and include the payment options.

Make sure you are sending the invoice to the right person and know the company’s billing cycle. That way you can send the invoice close to the date that it is due. Once it is sent, remember to follow up in case you need to. Companies can lose invoices, forget to pay, or just do not want to pay them yet. Setting up reminders will help you drastically in the even this happens.