Cash may be the lifeblood of any business, but it won’t be much help if you don’t get it on time.
How do you ensure that your cash flow remains stable? One time-proven solution is to send a well-formatted and detailed invoice. On top of getting your money on time, this makes a good impression on your customers.
Plus, creating an invoice is something you can easily do yourself. Here are all the main invoice details you’ll need to include in your template.
Identification
First, you should identify your document with the word “invoice.” This will differentiate it from a receipt, quote, or credit note.
You’ll also need to include a unique invoice number. You’ll need this number to identify the document, so keep a record of all numbers you use for this purpose. You can use letters as well as numbers.
Contact Information
Your contact information should always include your business name and address. You should also include contact details, in case of a query or dispute. If you’re registered for VAT, you’ll need a VAT number.
Your invoice should also include your customer’s contact information. This is important for customers who want to claim back any charged VAT.
Invoice Date and Due Date
The invoice date is the date you generated the invoice. You should also include the date you issued the goods, but in a separate line.
The due date is the date your customer must make the payment. In some cases, both sides will agree on the due date in advance. Otherwise, follow your industry’s standards to determine the best due date.
Description of Services
Any detailed invoice template needs an itemized breakdown of goods or services rendered. To avoid confusion, describe all items as clearly as you can. Use a separate line for each item for easy identification.
If you want to create invoice online, pay particular attention to this part. Make sure to pick a template that contains the right sections for your needs.
Invoice Summary
The invoice summary typically appears under the breakdown of services. It should include the subtotal, tax, and total.
As the name implies, the total is the final amount the customer should pay. This would be a good time to check the full invoice details to make sure you haven’t made a mistake in your calculations.
Payment Terms
The bottom of your invoice should contain the payment terms. These should include your invoice billing details, return policy, interest terms, and more.
This is also the place to specify which payment methods your business will accept. These can include PayPal, checks, money transfers, and so on. To save time, you may want to consider adding bank details to the invoice.
Other Invoice Details to Add
Depending on your business type, you may need to include other invoice details as well. That said, the above information needs to be on every invoice you send. Think of this list as your invoice cheat sheet!
Interested in other ways to improve your small business? Keep reading our Business section!
