An invoice is a commercial instrument that is helpful in every business transaction. Business transactions require the exchange of goods or services with money. Whether one’s customer prefers to make his/her payment through cash, check, or online banking, an invoice must still be issued in order to formalize the transaction.
Whether you are a business owner, a sales clerk, or a business manager, you need to ensure that your business is handing out proper invoice templates to your customers. To know the proper format and content of invoices, refer to our templates on this page. Scroll down below and download our templates now!
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What Is an Invoice?
An invoice sample is a business document that is issued by a business agent, associate, or clerk to a customer. This particular document’s purpose is to formally ask a customer to render his/her payment for the particular product or services which he/she has purchased or availed from a business.
How Are Invoices Useful?
Instead of verbally requesting your customers to pay for the products purchased or the services that they have availed, you could just send them an invoice or receipt and it would serve as a formal notification of their need to pay a certain amount. Indeed, invoices are not only convenient but also a legally acceptable method of making payment demands.
One can do away with unnecessary disputes if you are requesting payment in a way that is clear and formal. An invoice displays all the necessary information regarding the transaction that a customer may want to know such as the delivery fees, the taxable items, and price per item.
In line with this, since customers are no longer plagued with inquiries as to the total amount that they have to pay because they can already see the price breakdown on the invoice, both customer and business would save more time by avoiding unnecessary inquiries and clarifications.
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Some Helpful Tips before Creating Your Invoice
The creation of an invoice is not an easy task. You need to consider the following factors:
- Check the types of products that your company/business is selling since this can affect the number of columns you need to provide in your invoice.
- Also consider the common transactions being made in your company. For example, if your customers usually purchase a few number of items per transaction, then a one-page invoice is preferable. However, if your target customers are distributors or retailers, then a long-form invoice would be more appropriate since they are bound to purchase more items per transaction.
- Assess the type of products or services that you are selling and analyze how much tax is required per item.
- Consider other variable factors that might contribute to the total amount that each customer would pay. Other than taxable items, you can also consider whether or not the nature of your business require you to deliver items. If it does, then you also have to include in your invoice a space for the delivery fee.
- Moreover, you can also analyze whether or not there are additional fees that naturally follows with certain types of transactions such as additional costs of materials among other things.
For more specific types of invoices, you can also check out our collection of Contractor Invoice that you may use if your company is engaged in providing services such as plumbing, construction, etc. On the other hand, our collection of Hotel Invoice are useful if you are engaged in the hotel business or if you are managing an inn or a motel. To access these templates, simply click on their respective links.
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How to Create an Invoice
If you want some help in the creation of invoices, here are some guidelines for you to follow:
- Place the word Invoice at the topmost part of your document. This is essential for record-keeping purposes, as well as for easy visibility.
- Below the label, place the letterhead on your document. This letterhead should contain your company’s name, your company’s logo, complete address, and the contact number of your company. You may also include the email address.
- Then, leave a space for the primary details of your customers such as their names, address, and contact number.
- Create a table with specific rows and columns reserved for the various information that are essential in a transaction. This table should include columns for the name of the items purchased or availed, its quantity, and the price per unit.
- After that, reserve a space for the additional costs or fees that are included in the transaction, then at the bottom is the space for the total amount that the customer needs to pay.
Speaking of invoices, you might also be interested in our collection of Cash Invoice. Simply click on the link provided to access these templates.
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What Is the Difference Between Invoices and Receipts?
An invoice is a formal request for payment made by a business to its customers. Furthermore, invoices are given before payment has been made while receipt samples are given after the customer has paid for the service or good availed. These two documents are similar in the sense that these both indicate the goods and services being availed as well as its prices.
Why Issue Invoices?
Business must hand out professional invoices to their customers, otherwise a business would suffer from making informal transactions in the long run. The following are the reasons why invoices are important:
- The issuance of an invoice can help businesses improve their marketing strategies. This is so because invoices contain a wealth of information regarding the patterns and trends of customers and their needs. It would make it easier for businesses to adjust the aspects in their businesses in order to cater to the current needs of their customers.
- The issuance of an invoice can also help the business maintain an air of professionalism by formalizing business transactions. Since invoices are standard documents, it can serve as a proof of the formal request for payment. Hence, in case a customer opts to ignore such a request, businesses may resort to legal recourse.
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