How to make an invoice?

In this section, we'll cover how to make an invoice to send to customers. Invoices can be printed physically or sent electronically as a PDF, Excel sheet, or Word document. Overall, invoices should be easy to read and detailed so there is no misunderstandings between the buyer and seller.

There are 9 main elements of an invoice.

1.Name and Details of Company

When sending an invoice, you should include the Legal name and contact details (address, phone number, email address) of your business. Usually company information is written near the top of the invoice and clear differentiation between the company providing the goods or services and company buying it.

2.Header

Headers that clearly state the document is an invoice can be extremely useful when sorting through multiple documents. This will save you time when reviewing your records or completing taxes.

3.Invoice Number

An Invoice Number is a unique identifier for an invoice. Invoice Numbers can help you keep track of multiple invoices. Invoice Numbers can be structured in various ways including file numbers (IN0001), unique billing code, or date-based purchase order numbers.

4.Date

It’s important to include the date the invoice is issued. This can clear up confusion when there are multiple invoices going to the same customer.

5.Description of goods or services rendered

The description of goods or services rendered should include the following:

-Name of the goods or service provided

-Date the goods or service were provided

-Unit price of the goods or service provided

-Quantity of the goods or service provided

6.Itemized fees

Add any tax, handling or additional fees that are additional to the goods or services provided. These should be listed out separately as line items as some companies use different internal budgets to cover these fees.

7.Amount Owed

It might be obvious, but always clearly show the total amount due.

8.Terms and Conditions

One of the most overlooked parts of an invoice is the Terms and Conditions of payment. The standard payment terms vary by industry, your company’s policy, or previous history with the customer. It’s important to clearly state the penalties of the terms are not met which can include late fees or additional charges.

9.Name and Details of Buyers

Clearly state the Name of the customer so there is no confusion between the Purchaser and Buyer.

See below for how the elements are laid out on an invoice:

How do you make an invoice