Creating a business invoice is a critical step for managing your finances. Invoices are used to record payments and remind customers of paying for goods or services, as well as provide documentation for tax purposes. We have composed this article to help you write an invoice for your business.
What Are Invoices?
An invoice is a document used by business owners to track their customers’ purchases and payments. It records the delivered products or services, the amount paid for them, and when the payment is expected. How to build an invoice depends on the type of business you are running. You can do it either electronically, with the help of specialized invoice templates, or manually.
Importance of Invoices for Your Business
Invoices are legal documents proving that you provided goods or services to the client and received the payment from them. Let’s observe the main benefits of invoices for business owners:
- Invoices are essential for tracking payments and ensuring that your customers receive the correct bills. They guarantee that your company gets the full sum and that the customers do not receive inaccurate or incomplete bills. Since clients are more likely to pay a correctly built invoice on time, these documents can help you reduce the risk of late or non-payment.
- Since invoices provide an up-to-date picture of the company’s financial position, you can use them for business analytics. It is vital to understand how to create an invoice for a small business to track your income and expenses. This can help you manage corporate finances more effectively. Invoices identify the areas of major expenditures and those that need additional income. You can also use them to prepare your tax returns, as they provide a full record of all income and expenses.
- These documents also serve as legal protection for your business. If a customer disputes an invoice, a corresponding invoice can help you prove that you provided goods or services and got paid for them. Thus you can use these forms as evidence in court.
How to Get an Invoice Form?
There are several ways to get an invoice form:
- The most common method is to download the blank from the Internet. Many websites offer a variety of invoice templates suitable for specific business needs. You can either download the required form or fill it out online.
- Another option is to address a free invoice-generating tool such as PDFLiner.com. The library on the platform is a great resource for invoice-making templates. It provides a wide selection of blanks in PDF format. These forms are user-friendly and highly secure. You may customize them to your business needs and safely store your customer information and payment data there.
What to Include in an Invoice?
To ensure that you get an accurate amount of payment on time, you have to check that your invoices include all the necessary information. Here is a list of essential elements of any invoice:
- Business data: Start your invoice by specifying your company’s name, address, phone number, and any other relevant contact data.
- Customer information: In addition to your business data, including your customer’s name, address, and contact details.
- Invoice number: Make sure to put a unique invoice number on each invoice you send to your clients. This makes it easier to identify and track individual invoices.
- Date: The date on the document will help you not only track when you sent a particular invoice but also keep in mind the payment deadline.
- Description of goods/services: Add a clear description of the provided items or services and their quantity to the invoice. This will help your customers understand what they must pay for.
- Unit price: Enlist individual prices for each item or service. This will assure your clients that the total sum is correct.
- Total price: Calculate the total amount for the provided products or services in the corresponding field.
- Payment terms: Specify the deadline and which payment methods you accept.
- Late payment fees: Inform your customers about any late payment fees or penalties that may be applied if you don’t receive money on time.
- Invoice footer: For a respectable touch, include a footer with your company logo and any other relevant information.
Generate Your Business Backup
An accurate and professional invoice has to clearly state the terms of payment and applicable taxes, so you should take some time preparing invoices for your business. This way, you can enlarge your chances of being paid on time and make sure that your customers are satisfied with the services they receive.