What Is an Invoice?
An invoice is a billing document that is usually created and sent by the seller for the purpose of requesting the payment of the items or services that are purchased by the buyer.
An invoice should be detailed and must contain all the information that businesses need to make sure 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 owing on the invoice
It is the basic information that should be present on an invoice. This information will help you get paid faster and ensures that both parties will follow the terms present on an invoice.
Small Business Checklist For Filling Out an Invoice:
Here are a few most important things that you should keep in your 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 that you can follow while filling out an invoice every time for your business deals.
It will help your clients to know that the invoice is sent by your company 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 it is 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.
- The contact details of your client, 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 options for payment, such as payment by check, credit card, direct bank deposit, online payments, or cash.