FREE Elements That You Need to Include in Your Invoice [ With Samples ]

Businesses, organizations, and other corporate entities need to keep records and formal documents to be able to effectively operate the business on a daily basis. Creating an invoice is essential in order to record transactions between a business and a client. Both the business and the clients or customers can benefit from an invoice.

Businesses, organizations, and other corporate entities need to keep records and formal documents to be able to effectively operate the business on a daily basis. Creating an invoice is essential in order to record transactions between a business and a client. Both the business and the clients or customers can benefit from an invoice.

Invoices are important since it not only helps businesses record the items purchased but is also used to request for payment ensuring that you get paid on time. There are various types of invoices that businesses can use depending on the purpose. If you need to create one, there are different invoice templates available for download on this site.

Blank Invoice Template

Export Invoice Template

What Is an Invoice?

An invoice is a written or printed document that is essential in every business. It contains a detailed list of the products and services that a client has purchased, including the tax charges, the total amount due, and other important information. Whether you are a freelancer, an independent contractor, a corporate company, or if you own a small business, an invoice is a must-have. Businesses can make use of invoice templates for an easier and more convenient way of creating one. Invoice samples like a commercial invoice and a medical invoice template are available on this site.

Why Is an Invoice Important in Business?

One of the documents that are necessary for every business is an invoice. In order for a business to get paid for the services and the products that they have rendered to their clients or customers, providing an invoice is essential to ensure that they get paid on time. An invoice is also a useful tool in keeping track or monitoring the status of the transactions done in the business to ensure that the items will be delivered to the purchasing party. From making an order to requesting for payment, an invoice is an important tool in these processes.

Commercial Invoice Template

Sample Tax Invoice Template

What Are the Elements That You Need to Include in Your Invoice?

There are certain elements that need to be present in an invoice to ensure that both parties know each of their responsibilities when doing a transaction. Here are the essential elements that an effective invoice should contain:

• Company Information – the company information of both the business and the client should be clearly indicated in an invoice. Through this information, you will be able to identify which party is responsible for paying for the purchased items and services as well as determine the party that has provided the products and makes the request for payment.
• Header – the header is also an important element that should be present in an invoice. This indicates the type of invoice you are creating like a commercial invoice, a tutoring invoice, a sales invoice, etc.
• Date and Invoice Number – the date and the invoice number is also an important aspect of any invoice. It is necessary that you specify the date when the invoice is issued to the client to be able to determine when the invoice is due, as well as to be able to keep track of the document. Similarly, the invoice number also helps businesses in keeping track of the invoice, especially when you need to look for a specific invoice in your records or system.
• The List of Goods and Services – this is probably the most important component of any invoice. A detailed list of the goods and services that you have provided to the client allows you to specify the prices of each, the quantity, and the name of the good or service.
• Itemized Fees – this section lists the additional fees that are charged for the products and services that a client has purchased from the business. It includes the tax charges, delivery fee, handling fees, etc.
• Total Amount Due – the invoice should clearly display the total amount due that has been charged to the client.
• Terms of Payment – every invoice should include details for the terms of payment, specifically the methods through which the client can pay the business, whether it is in cash or credit card payment.

How to Write an Invoice

Do you own a small business or do freelance work? Chances are you will need a document to record the different transactions that you make with your clients. To help you create your own invoice, freelance invoice, or any type of invoice that you may need, the steps in creating one are as follows:

• Create your own format or outline for your document or you can download from the legal invoice samples available on the Internet.
• The first thing that you should write in your document is the header. Write the name of your business, including the address, contact information, and email address. You can also add your company’s logo to give it a professional look.
• Write the client’s name and other relevant information such as their address, email address, contact information, and most importantly, the client or customer’s account number.
• Assign a unique invoice number in your document and include the date when the invoice is issued to the client.
• Write a detailed list of the services that you have rendered to your client/s.
• List down the prices for each service and product, including the tax charges and total amount.
• Specify when the client will need to pay the total amount as well as the methods that they can choose to pay you.
• Print out your invoice and send them to your clients or customers.

Sample Proforma Invoice

Generic Blank Invoice Template

Blank Invoice Sample

Shipping Invoice Template Sample

Sample Tutoring Invoice

Order Form Invoice Template

What Is the Difference between an Invoice and a Receipt?

An invoice and a receipt are both important documents that a business should provide to their clients during transactions. So what exactly is the difference between an invoice and a receipt? To answer this question, the differences between both documents are as follows:

• An invoice is provided by the business after the items or services have been delivered to the client/s. A receipt, on the other hand, is a document given to the client after he/she has paid for the total amount due.
• An invoice is sent by the business to the customer to request for payment, while a receipt serves as an acknowledgment that the client has paid for the services and products rendered by the business.

 

Also, should you need to create a receipt for your business, there are receipt samples available for download on the Internet.

Tips for Creating an Effective Invoice

To ensure that you have an effective invoice for your business, follow the tips below to help you when creating one.

• Always keep a professional and polite tone when creating your invoice. This will help you build a relationship with your clients, which will not only assure that you get paid but also allow your business to grow by taking care of your customers.
• Remember to always provide an invoice number or a unique identifier for you to be able to easily track your transactions.
• Provide different payment options that your clients can choose to pay you. This not only makes it more convenient for your client/s but also ensures that you get paid on time.