What Is an Invoice?
An invoice is a billing document that is usually created and sent by the seller to request payment for the items or services the buyer purchases.
An invoice should be detailed and contain all the information businesses need to ensure that their clients will pay on time. This information includes:
- The name and contact details of your business
- The contact details of your client
- A unique invoice number
- A list of the services provided
- Payment terms
- The invoice due date
- The total amount owed on the invoice
It is the basic information that should be present on an invoice. This information will help you get paid faster and ensure that both parties follow the terms on an invoice.
Small Business Checklist For Filling Out an Invoice:
Here are a few most important things you should keep in mind while filling out an invoice to get paid faster.
1. Uniformity In Business Invoice:
Business invoices should be consistent and uniform. For that purpose, you need to have a uniform template you can follow while filling out an invoice for your business deals.
It will help your clients to know that your company sends the invoice because of its consistent and unique format. This shows the professionalism of your business.
2. Build Your Brand:
Your business invoice is not just a document but something more than that. It helps you to leave an impact on your clients for future business deals. A professional invoice has a very positive impact on your client. It will give the impression that your business is not an ordinary one. It can be the best marketing tool for your business.
3. Basic Invoice Information:
Your business invoice must have the following basic information so that you and your client should not face any trouble in the future. Here’s what you’ll need to include when filling out an invoice:
- The contact details of your business, including name, address, phone number, and email address.
- Your client’s contact details, including the correct address and contact number for invoicing.
- You must have a unique invoice number for record-keeping for your business or when communicating with your clients.
- An itemized list of services provided, along with the number of working hours, the per-hour rate, and a subtotal for each item. This information must be presented in the form of a grid or table.
- Include the payment terms, including the amount and payment method.
- An invoice due date.
- The total amount should be highlighted in bold font.
- A thank you note at the bottom to keep good terms with your clients.
4. Create an Invoice Numbering System:
The invoice numbering system will help you while filling out your invoices. You can simply number them sequentially, like #001, #002, #003…, or use the client’s ID or date. Cloud-based invoicing software will automatically assign unique invoice numbers for each new invoice you fill out, depending on the numbering system you choose.
5. Set Clear Deadlines:
It is very important for you to set clear deadlines for the payment in your invoice. Add a specific due date for payment, such as “Payment due on June 1, 2020.” It will help you to avoid any confusion in the future while dealing with your clients or at the time of making payments.
6. Add Flexible Payment Options:
You must be flexible while giving payment options to your clients. It will help you make good relations with your current clients and help you gain more clients. You can give them flexible payment options, such as by check, credit card, direct bank deposit, online payments, or cash.
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