Once the job has been completed, it’s time for you to get paid. Invoices can be a time-consuming pain if you don’t do them correctly. Here’s our guide on how to make an invoice the right way:
Why do I need to make an invoice?
By law, any time a customer is sold goods or services, you need to provide them with an invoice. An invoice differs from a receipt, as it comes before the payment. It should show how much the customer owes for the service that was provided.
What needs to be on an invoice?
Every invoice is required to have its own unique identification number. This can be anything, so long as it allows somebody to be able to identify the specific invoice, and can contain both numbers and letters.
- Using the date e.g 16022022
- Using a customer’s name ROY01
- Creating numbers chronologically e.g 00001, 00002
Different ways to make an invoice
Using a template
Using a template is one method of making an invoice. They reduce the time spent on each invoice and keep your invoices consistent.
Ways of making your template:
- Create a template on Microsoft Word or Google Docs
- Use a spreadsheet to create your template, which can automate totals and VAT calculations
- Download a free online template
Once you’ve made your invoice, it is advisable to save it as a PDF document. This will stop your customers from changing it and will make sure the invoice looks authentic.
Using invoicing software
Invoicing solutions are becoming more and more popular, as they can be extremely effective at cutting down the time spent on admin.
Reasons why you should be using an invoicing solution:
- You can customise them with your business’s logo
- You can easily convert estimates into invoices
- The entire invoicing process can be done straight from your phone, in under a minute
- Customers can pay directly through the invoice with their credit/debit card
- They can track which customers have paid their invoices, so you can spend less time chasing them up
- You can set up recurring invoices, for regular customers
Whatever method you use to make your invoice, making your invoices easy to understand will ensure that your customers are able to pay you as soon as they receive them.