6 Useful Tips On How To Write An Invoice


6 Useful Tips On How To Write An Invoice
Whether you are a new business owner or have been in the industry for a long time, you will need to invoice your clients in order to get paid. Messy invoices that are missing crucial pieces of information will come off as unprofessional. Here are six helpful tips for writing an invoice, so your customers know what they are paying for and how to make payments.

What Is an Invoice? 

Before attempting to write an invoice, you should first understand its components. An invoice is a statement issued to the customer letting them know the amount they owe after availing of your services. The practice of invoicing customers can be dated back to 5000 BC. An invoice is a brief description of the products and services rendered, how much they cost, what amount is due, and various ways the customer can pay you.


1. Build a Professional Layout

Writing, processing, and sending out customer invoices can be time-consuming. It also causes a ton of trouble because there is no room for inconsistency. You will be living your worst nightmares during auditing. You can use this template to eliminate the hassle of the paperwork that comes with invoicing. Invoices differ based on the services offered; however, they all share key elements. If someone were to buy a product from your store, the invoice would simply list the amount owed and the purchased item's description. If it is a digital invoice, it may include more information.


2. Make Sure It's Easy to Understand

No one likes a hard-to-read invoice, and your priority should be to keep your invoice simple. It enables your customer to know exactly what they are paying for. Organize and list the services and goods in a way that can be easily understood. 


A customer should be able to easily identify your business. This means placing your company’s logo in a visible position is crucial. Including your business logo or letterhead is also an excellent way to personalize your invoice.


3. Clearly Mark Your Invoice 

Often, customers receiving an invoice will dump it in the trash can, not knowing that it is due payment. To ensure it does not end up like that, add the word invoice on top of your document. Not only will it stand out from the rest of the papers your client may have received, but you are also more likely to be paid on time. 


Keeping track of invoices is tricky, and adding a unique identification number can do wonders for your records archive. You will have a reference for all invoices created, and it will prevent duplicates. 


4. Mention the Dates

Always mention the specific dates to your invoice. Typically it includes the date the customer bought the services and goods and the supply date. You will also be required to add the date you created the invoice. To prevent confusion, make sure to label each date. 


Often, businesses place the invoice date at the top. It goes along with the business’s name, contact details, and address. As for the supply date, it goes next to the description of the services or goods. The customer will be easily able to differentiate the information that concerns them. 


5. Always Add up the Money Owed

No one likes doing calculations in their head and as such, it is always best to simplify things for your customer. Once you have listed all the goods and services purchased, make sure to list their individual prices and add up all the money owed. If you offered the customer a discount, mention it on the invoice and adjust the total cost accordingly. 


6. Include Payment Terms

Even though discussing the financing options with the customer beforehand is recommended, it's always a good idea to include them in the invoice just the same. If you expect the customer to pay in a certain number of days, you can quickly bring it to the customer's notice by adding the information in the invoice. 


Likewise, if you are expecting to be paid through a specific channel, include those details on the invoice as well. In case it's a bank account, have all the necessary information the customer might need in order to make the transfer.

Getting customers to pay for a service or product is essential to the very core of your business. Customers falling behind on payments can do irreparable damage to your company. While it is up to the customer to pay you whenever they want to, writing your invoices effectively can increase the likelihood of being paid on time.