Writing an invoice is a key skill for businesses and freelancers to get paid on time and maintain strong client relationships. A well-crafted invoice not only ensures you receive payment promptly but also helps clients clearly understand the services or products they received. This guide will walk you through every step to ensure that the invoicing process is simple, clear, and efficient for both you and your clients.
Templates
Writing the Invoice
Include Your Business Information –
Start by including your business name, address, phone number, and email at the top of the invoice. This helps the recipient know exactly who the invoice is from, and it’s important for proper documentation.
- If you have a logo, add it here to give your invoice a more professional look.
Add the Invoice Number –
Every invoice should have a unique invoice number. This is essential for keeping track of your invoices and for your client’s records. You can use any numbering format that makes sense for you, such as INV001, INV002, and so on.
- Avoid using duplicate numbers, as this can cause confusion when tracking payments.
Include the Invoice Date and Due Date –
Mention the date when the invoice is being issued, as well as the due date for payment. Including both dates establish a clear timeline for payment and keeps things organized for both parties.
Add Your Client’s Contact Information –
Include the name, address, phone number, and email of the person or company you are invoicing. This information should be specific to avoid misunderstandings.
Make a Table to List the Prices and Services –
If you are using Word or Google Docs, insert a table with 5 rows and add columns for each of these:
- No: Use this column for item numbers in the invoice.
- Products/Services: List all the products or services provided.
- Date: Mention the date each service was provided if it is a service invoice. In the case of a product invoice, this column can be skipped. You can also skip this column if all services were provided on the same date, as it has already been mentioned at the top.
- Rate/Price: Mention the rate you are charging for the services or the price for products or items. If you charge by the hour, you can mention it like $30.00/hr.
- Hours/Quantity: If you charge by the hour, write down the number of hours spent performing the service. If it’s a product invoice, mention the quantity per item here.
- Total: Mention the total amount for each item, which can be calculated by multiplying the quantity with the price or rate of each item.
Calculate and Mention the Subtotal –
Add up the individual costs to provide a subtotal. This subtotal is usually mentioned in the last rows of the table along with other information, which we will mention in the next step.
- Make sure your calculations are correct—errors in math can delay payments.
Include Applicable Taxes, Discount, and Other Charges –
If applicable, include the sales tax percentage, tax amount, shipping charges, or any other charges right after the subtotal in the very next rows. Also, mention any discounts that apply to the invoice.
- Make sure to follow your local laws regarding tax rates and invoicing requirements.
Add Payment Instructions –
Provide instructions on how your client can pay you. Whether it’s a bank transfer, check, PayPal, or other methods, ensure the payment process is simple.
- Add bank account details along with other payment method details to make it easy for the client to clear the payment.
Specify Payment Terms –
Clarify the payment terms, including the due date, acceptable payment methods, and any penalties for late payment. Common payment terms include “Net 30” (due within 30 days).
Add a Polite Note –
Finish off your invoice with a polite note, such as “Thank you for your business!” This small gesture can help foster goodwill and encourage timely payment.
Tips
- Proofread the Invoice: Ensure all information is correct, including dates, names, amounts, and contact details.
- Be Concise: Ensure the information is easy to understand to avoid confusion for the client.
- Keep a Copy: Always keep a copy of the invoice for your records. This helps with tracking and resolving any future disputes.
Important
- Avoid Ambiguity: Always use specific language when describing services or products, as ambiguity can lead to disputes.
- Respect Legal Requirements: Make sure your invoice complies with your local tax laws and regulations.
FAQs
You can create an invoice in Google Docs or Microsoft Word from scratch for free. However, if you’re looking for a quicker solution, you can use invoice templates. Using templates in Google Docs or Word is convenient, as all you need to do is fill in the necessary details, saving time and effort.
You can send invoices via email, and you can also use online applications to create an invoice. If you choose to use Google Docs, you can securely share the invoice with your client using a view-only link. Another good option is exporting the invoice in PDF format from Google Docs or saving it as a PDF from Microsoft Word, which you can then attach to an email along with a message.
Follow up with polite reminders after the due date has passed. You may also include late payment penalties to encourage prompt payment.
