How to Write an Invoice: All You Need to Know in 2023 Do you run a business, or are you a sole trader and need to learn how to write an invoic e? When sending invoices, it is essential to include all relevant information. Doing this will guarantee both parties a seamless process and prevent payment delays. A template is one of the best ways to create an impressive invoice. You can find many different templates online.
What to Include in an Invoice:
The word ‘invoice’ — so that it stands out from quotes or estimates.
A unique invoice number
Invoice date
List of products or services provided — including cost
Your complete information — name, address and phone number
Customer’s complete information — name, address and phone number
Payment terms and info
Payment instructions
Total invoiced amount
Taxes
How to Write an Invoice: The Header The Header is the area at the top of an invoice that contains information such as the invoice number and date. It may also include information about who owns or is billing for a product or service. Customise the header of an invoice by adding text and images. This is an excellent opportunity to add important company information and ensure others quickly identify it as an invoice.
Standard invoice headers contain the company name, address and contact info. You may also add a logo and other relevant information to this section. The practice offers three header types: type 1, type 2, and type 3. A type 1 header typically features the word ‘invoice’ written in the centre, with company information to the left.
Many companies rely on specialised software to generate unique headers for their invoices. Doing so makes printing an invoice explicitly tailored for your business simple, helping maintain brand recognition and uniformity across all departments. Another way to customise an invoice’s header is by including the customer’s name and address.
This is an effective way to provide them with additional details and enhance customer service. The header can include other essential details, such as the customer’s remit-to address and invoice page information.
Furthermore, you can add a statement header that displays the date and amount due. Customise the header of an invoice by adding an alternate billing address and logo. Doing so can boost your customer’s confidence in receiving their invoice and reduce errors in your process.
This is a great way to meet all of your billing needs while saving time in the process. This can be done from the configuration dashboard if you need to create custom headers for invoice and statement content manager. Select from an existing header or create a new one and save it for quick reuse.
How to Write an Invoice: The Body An invoice’s body outlines all goods or services purchased and their total amount owed. It also contains any tax information necessary for payment. Invoices are essential to any business, so they get paid on time. Your body should be concise and straightforward, providing only the essential information your clients need about what they’ve purchased or requested of you.
Doing this helps them avoid misunderstandings and allows them to pay you quickly, conveniently, and without any delays.
Maintain the focus of your email with instinctual formatting.
Highlight key information with bullet points, bold fonts and other techniques to keep it concise and to the point.
Additionally, include some personalisation in the body of your invoice to let your client know they’re speaking to a real person rather than just an automated system. Doing this shows them you put thought into creating the email and will likely increase engagement in the future.
Your subject line is the most critical part of your email, so take the time to craft one that communicates what you’re sending them: an invoice with payment due.
Furthermore, keep it short and sweet; too long of a subject line may make it difficult to read on small screens. Include the invoice number in your subject line to stand out from others sent to your client.
It also serves as a handy reference when sending reminders or responding to any disputes over an invoice.
If you need to include any special information about an invoice, such as taxes or payment method, you can also include this in the header section. Doing so ensures your client can access all pertinent details when required.
How to Write an Invoice: The Due Date An invoice is a document that details the sale of goods or services and how much money is owed. It can be sent to a buyer before or after they receive them, depending on which option is more advantageous. Ultimately, invoices are essential for businesses to get paid and remain profitable. Invoices should be set with a due date that indicates when payment is expected.
Setting this deadline ensures your customers make their payments on time, helping you avoid late fees and interest charges for late payments. You can set the due date on various levels: company level, customer level or invoice level. Furthermore, you can set a default due date for each customer, which will apply automatically to all their invoices; however, if a current due date belongs to that customer and needs changing, manual selection of this option must be made first.
The invoice due date is calculated based on the specified payment terms and then verified against any due date limits set up for it. If no limit has been set, the calculated due date is the final invoice due date. Setting the due date on an invoice requires caution, as you could accidentally set an incorrect date.
To guarantee you set the correct due date, consider the following:
When setting the due date on an invoice, the system will always ask if you wish to apply this setup to all outstanding invoices for that customer.
If yes, the new setup will apply to all current invoices and take precedence over any other due dates set at either company or customer level.
The due date on an invoice is determined by the delivery date of goods or services purchased and the receipt date of a purchase invoice.
For both sale and purchase invoices, delivery dates are calculated based on Confirmed receipt dates for sale invoices and earliest packing slip posting dates for purchase invoices.
How to Write an Invoice: The Payment Method Businesses use invoices to collect payment from customers for goods or services provided. They contain details of the items purchased or services rendered, information about the business and entities involved in the transaction, associated costs, and payment terms. The most widely-used invoice payment method is online credit or debit card payments. This fast and secure payment method offers reliable vendors multiple layers of protection to keep your data safe.
Bank transfers are a popular payment option for invoicing. They’re easy to send, free to use, and usually arrive within a few days. The only drawback is that this manual ‘push’ payment type means companies may not be alerted to payment failures or delays. GoCardless, an automated ACH Debit service provider, helps reduce the risk of late payments and saves businesses time and money by eliminating manual admin.
With over 200 accounting software integrations and an intuitive merchant dashboard, GoCardless makes it simple for your business to get started with this efficient payment option. When running a small business, your customers may prefer paying you via invoice for their product or service. To guarantee they pay on time, include an expiration date in all invoices.
The due date is an essential element of your invoicing process, as it encourages customers to pay you promptly and helps keep your finances healthy. Additionally, offering discounts for early payment can motivate customers to take action quickly. When creating an invoice, it’s essential to include accurate payment terms that align with your business practices. Doing this helps build strong relationships with your customers and reduces the chance that they won’t get paid on time or at all.
Payment methods for invoices differ between clients, each with advantages and drawbacks. By selecting the most suitable invoice payment option for your business and customers, you can improve customer satisfaction levels and boost revenue from sales.
How to Write an Invoice
1. Header Information:
Include your business name, address, phone number, and email address at the top of the invoice. This is your contact information, so the client knows who to reach regarding the invoice.
2. Invoice Date:
Include the date when the invoice is issued. This is the date you send the invoice to the client.
3. Invoice Number:
Assign a unique invoice number to each invoice. This helps with organization and tracking. Ensure that your numbering system is sequential.
4. Client Information:
Include the client’s name or company name, address, phone number, and email address. Make sure the client’s details are accurate.
5. Description of Products or Services:
List the products sold or services rendered. Include a detailed description of each item, along with quantities and prices. Use clear and concise language.
6. Unit Price:
Specify the unit price for each product or service. If applicable, include the rate per hour or per item.
7. Quantity:
Indicate the quantity of each product or the number of hours worked (for service-based invoices).
8. Subtotal:
Calculate the subtotal for each line item by multiplying the unit price by the quantity.
9. Additional Charges:
If there are any additional charges, such as taxes, shipping fees, or discounts, include them separately.
10. Total Amount Due:
Calculate the total amount due by adding up all line item subtotals and any additional charges.
11. Payment Terms:
Clearly state your payment terms, including the due date and the acceptable methods of payment (e.g., bank transfer, cheque, credit card).
12. Payment Instructions:
Provide detailed instructions on how the client should make the payment, including account details for bank transfers or a mailing address for cheques.
13. Late Payment Terms:
If you have specific terms for late payments, such as interest or penalties, include them in your invoice.
14. Contact Information for Inquiries:
Include your contact information in case the client has questions or concerns about the invoice.
15. Thank You Message:
It’s a good practice to include a polite thank-you message for the client’s business.
16. Attach Supporting Documents:
If relevant, attach any supporting documents, such as receipts, purchase orders, or contracts, to provide additional context for the invoice.
17. Review and Proofread:
Before sending the invoice, carefully review it for accuracy, clarity, and completeness. Ensure that all calculations are correct.
19. Keep a Copy:
Maintain a copy of the invoice for your records. This helps with tracking payments and maintaining a clear financial history.
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