An invoice is a crucial document for every contractor. More than just being a legal document, it helps contractors to streamline financial flow and keep a track of financial activity.
Sending accurate and successful invoices is a dream for many contractors; no, it is not that tough. Earlier, it was challenging to create precise invoices because of a manual process.
However, not anymore. Thankfully, we have a solution where you can make your own invoice template or use invoice software. Without wasting any time, let’s understand what to include to create an invoice and the steps for sending a successful invoice.
Things to Include to Create an Invoice
Creating an invoice is not a piece of cake but adding these points to your invoice will help you to make a successful one.
#1. Add Necessary and Relevant Information
Invoices are supposed to send as soon as the work is done. Now, you don’t have plenty of time as other works are already pending, so to ensure that your invoice is accurate, you need to add all relevant information.
While creating an invoice add information like;
- denote invoice title
- your name, address, contact information,
- company’s name, address, and contact information
- date of issue
- payment terms
- total amount
- tax applicable (if needed)
Every business functions differently, so more information will be added to the invoice. Nevertheless, above mention information is a must to include in your invoice.
#2. Professional Design
If you are given a document or note, what’s the first thing you will notice? You will notice the design and format of the document. No matter what industry you are from, the design does matter.
So, how can you not add that point to include in invoices? However, the invoice is a formal itemized, so it should look professional. After all, your invoice signifies your company and brand’s image.
You will find multiple online templates or invoice software which will help you to create professional invoices. Several small business owners prefer invoice software and invoices templates because they are quick and efficient to make.
Moreover, it helps to save time and money; what else is needed, right?
#3. Clear Payment Method
Why invoice is generated? To get paid for the service provided by the seller for the product or services. If you and your clients are unclear about the payment method and terms, then creating an invoice would be a waste.
It is vital to have a discussion about the payment before creating an invoice. After that mention it in your invoice. A clear payment method on your invoice will help both you and your clients to keep track.
Now, there are numerous payment methods like cash, credit card, debit card, and online payment method. In the nutshell, both should be sure about the payment methods.
It will also help to improve customer experience because of quicker transactions without any failure and a streamlined process.
#4. Payment Term for Better Communication
Once you know about the information and payment method, it is necessary to know when you are getting money. The payment terms are very crucial party and several contractors misunderstand by thinking it is part of payment methods.
Yes, it is a part of payment but it is different from payment methods. Payment terms mean the mention of a number of days or years, and the buyer will pay the amount. For example, if the invoice needs to be paid in 30 days, “NET 30” will be written in your invoice.
If they missed the date, you can send them a follow-up invoice as a reminder to pay the amount. It can also be considered as chasing payment for the seller because the payment is due.
Now, let’s look at the steps to create and send an invoice.
Steps to Create and Send Invoices
Following the below steps will help you to send a successful and accurate invoice.
- Write Invoice at the top left of your invoice
- Add your business’ name, address, and contact details
- Include invoice number
- Write the issued date
- Add the client’s name, address, and contact information
- Write brief description
- Mention payment methods
- Add payment terms
- Add the total amount
- Include taxes (if required)
Eleggible’s Final Words
One of the primary reasons for the invoice is to get paid faster. And that is only possible by sending accurate and professional invoices to your clients. Getting an invoice template could help you to create invoices promptly and with fewer mistakes.