If you run a business, it is common to come across business documents such as a statement of account, official receipts and there are invoices. As your business will slowly starts to grow, there will be a need for you to start sending invoices to your customers. But, how important is a customer invoice to you and your business? Read more about in this article for today and should you wish to start working on your invoice, check out our free customer invoice samples below:
10+ Customer Invoice Samples
1. Customer Invoice Template
2. Customer Invoice Attached Template
3. Project Customer Invoice
4. Communicate Customer Invoice
5. Request for Customer Invoice
6. External Customer Invoice
7. Contractor Customer Invoice
8. Customer Billing Invoice
9. Customer Outstanding Invoice
10. Customer Advisory Invoice
11. Customer Tax Invoice
What Is a Customer Invoice?
An invoice is a document that is usually forwarded to a customer before payment is settled. This would contain details of the products to be or has been purchased or services to be or has been availed, with the purpose to collect payment from the buyer. The main purpose of sending out an invoice to your customers is to provide a business and its client with a record of the sale. A customer invoice serves an important purpose particularly in accounting as an invoice demonstrates a customer’s obligation to pay you for your services or the products. Having this particular document can serve as an agreement between the seller and the buyer.
How To Create a Customer Invoice?
Aside from the one mentioned earlier, customer invoices have several other purposes aside from payment collection which is vital especially when it comes to accounting concerns. Such as bookkeeping which provides documentation of your business’s financial history. For tax records, which are relevant to your year tax filing; for legalities which can help protect businesses from false lawsuits, because invoices provide details of the services you provide to your clients and the timeline of when you complete the work. And lastly for tracking your inventory which can be relevant for sales and business planning. So now that you have an idea of what a customer invoice would positively provide for your company, it is time to start working on one. Now, customer invoices can differ depending on your company or what kind of business you are running but let us tackle the general details of this accounting document:
1. Using Templates
First of all, you can simply create a customer invoice using Microsoft Word or Excel. Some software may have built-in invoice templates you can choose from. Creating invoices this way can work well, especially if you are most familiar with the software. You can send these as a soft copy or by printing the document and forwarding this personally to your client. Aside from that, there are a lot of downloadable invoice templates which you can search on the internet or are made available here in our article.
2. Basic Details
If you decide to personalize and make your own template you must not forget to include these basic details below:
- Business Information – this should contain basic details about your company such as the complete name, address, contact details, and if it permits your company logo.
- Date – including the date is vital most especially if you have a required deadline for the payment. You could add the supply date to the description of your goods or service, and add the invoice date at the top along with your name, address, and contact details.
- Invoice Number – this is most especially important for bookkeeping, as invoice numbers are one of the most important aspects of invoicing as they ensure that income is properly documented for tax and accounting purposes. This is a sequenced and unique code assigned per invoice.
3. Description of Goods or Services
The product or service description should completely indicate the details of which your client has availed or purchased or has yet to do so. Make sure you make this clear, complete, and understandable in order not to delay their payment.
4. Payment Method and Terms
Depending on the policy your company has been following, the payment terms and method must be also clearly defined and stated in the invoice. If deadline within a certain number of days, remind the customer by including it on the invoice. As for the payment method, note down how exactly your customer should make the payment. It’s likely you’ll want the customer to make the payment directly to a bank account, so include the bank details. In some cases, if you want to be transparent, then you can also include which type of payment your company is available to receive, whether this is in cash, cheques and etc.
5. VAT Registered
If your company is VAT(value-added tax) registered then you need to include details of the VAT registration number. VAT invoice will need to have additional details, apart from the ones mentioned earlier. In this case, the information you need to include depends on the type of VAT invoice you’re issuing.
What Is The Difference Between an Invoice and a Receipt?
An invoice is a document sent to the customer before a payment is collected which is like a request for payment, whereas a receipt is issued to the client when the payment has been collected and received.
What Is A Value Added Tax?
VAT or value-added tax is a consumption tax assessed on the value-added in each production stage of a good or service.
What Is a Statement Of Account?
A statement of account or SOA is an accounting document issued by a business to show all transactions made between you and a customer over a given period of time. It will also reflect the payment made previously by the client and the remaining balance to be settled.
One of the best and formal ways to collect payment from your customers is by creating a customer invoice. So start working on one now and if you need any help, feel free to use any of our customer invoice samples found in this article.
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