Why invoices

Learn more and manage your cookies. What is an invoice? And why is it so important for your business? An invoice is perhaps the most important document you produce for your business. Learn what an invoice is, why it's important, and the three things you need to consider when creating your invoice layout. An invoice is a commercial document given to a buyer by a seller that states the total amount due for goods or services rendered - which is a fancy way of saying it's the bill a business sends a client to get paid.

An invoice lists the products or services provided by the seller, as well as payment terms, and any other information relevant to the buyer. For many businesses, the invoice also serves as the buyer's receipt. Why is an invoice important? Besides helping you get paid, an invoice represents who you are as a company. Yes, your bill for consulting services or any other services that you perform is just a form - whether a physical document or one generated online.

It's your image. It tells a story about your business - where you are, what services you provide, what you look like. It says to the world that you are proud of what you do all the way through to the final receipt you deliver. How to write an invoice. So what makes a great invoice? In my opinion, there are three big things you need to consider in your layout: presentation, content, and messaging.

Your bill should look the same whether it's mailed or sent electronically. It should represent all that's good about your business. So how do you make it look good? Have a great logo. Hopefully your logo is professional and unique. If not, then consider getting it redone - there are many online services that will do this for you, or you can look for a graphic artist on freelancer sites.

It should be the same logo from your stationary and website. It should be crystal clear and sharp. Instead of or in addition to your logo, have a cool graphic. Some of my customers send bills with photos of their building, or products or a group of their employees.

I've seen beautiful sunsets and hometown cityscapes on bills sent to me from vendors. A few of them even substitute cartoons or professional drawings for a photo. A cool graphic like that draws attention.

Ideally your invoice should be one page. But don't sweat that detail. You want to make sure your fonts are large enough so that anyone - even those boomers - can see all the information without reading glasses. If that means going on to a second page then so be it. Your bill should also be black and white. That's my opinion. Sure, you can colorize your logo or graphic.

But keep the rest of it straight up and easy to read. Too many colors create confusion and are distracting from the bill's main purpose: reminding your customer that payment is due. As said above, the main purpose of sending a bill is to notify your customer that they owe you payment for a product or service rendered. You want to make sure your invoice has all the information a customer needs to accomplish that task as quickly as possible.

What information is that? Modern invoicing software products from SaaS companies enable you to automate, speed up, and manage the invoicing process so that you get paid on time. Enjoy complete freedom over the look and feel of your invoices. Choose a premade template from a gallery and tailor it so you can build your brand the way you want. Sit back and let your software take care of your invoices by automating tedious recurring tasks from invoicing workflows to payment reminders.

You can even automatically collect payments on a recurring basis. Invoicing software helps your customer relationships reach a new level. Good invoicing software includes CRM support and a client portal for customers to track their transactions or make payments online. Invoice software helps to streamline your accounting and financial processes by automating important tasks. By doing so, you can:. A good invoice isn't just a sales receipt, but a legal document that protects your business against errors and risks.

The right invoicing tools can help you streamline your invoicing process, improve your cash flow, and even simplify your accounting. A mobile-friendly SaaS invoicing system is an easy modern upgrade for any business that's stuck in the stone invoicing age. We can wait. Take your time to draft us your question. By clicking Submit , you agree to our Privacy Policy. Get your free account! Start creating invoices in less than 5 seconds. What is an invoice Find all that you need to know about invoices.

Evolution of invoices. Stone invoices Invoices and records of transactions were made as early as BC in Mesopotamia. Hand-written invoices Invoicing later evolved to hand-written invoices on animal skin, parchment, or paper.

Electronic invoices The invention of computers brought about the next big change in invoicing. Online invoices The advent of the internet led to better, more secure, more green ways to communicate with clients. Steve also turned his tennis hobby into a career, coaching, writing, running nonprofits and conducting workshops around the globe. What Is the Purpose of a Sales Invoice?

Small Business Running a Business Sales. By Steve Milano Updated October 25, Your company name Invoice date Invoice number Purchaser Product or service description Unit price Number of units purchased Total amount owed Date due Payment terms 15 or 30 days, for example Early and late-payment terms. Sales Invoicing Guide for Small Businesses. It typically has a unique identifier called the invoice number that is useful for internal and external reference.

An invoice typically contains contact information for the seller or service provider in case there is an error relating to the billing. Payment terms may be outlined on the invoice, as well as the information relating to any discounts, early payment details or finance charges assessed for late payments. It also presents the unit cost of an item, total units purchased, freight, handling, shipping, and associated tax charges, and it outlines the total amount owed.

Companies may opt to simply send a month-end statement as the invoice for all outstanding transactions. If this is the case, the statement must indicate that no subsequent invoices will be sent.

Historically, invoices have been recorded on paper, often with multiple copies generated so that the buyer and seller each have a record of the transaction for their own records.

Currently, computer-generated invoices are quite common. They can be printed to paper on demand or sent by email to the parties of a transaction. Electronic records also allow for easier searching and sorting of particular transactions or specific dates. A pro forma invoice is a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods.

The invoice will typically describe the purchased items and other important information such as the shipping weight and transport charges. Pro forma invoices often come into play with international transactions, especially for customs purposes on imports. The invoice date represents the time-stamped time and date on which the goods have been billed and the transaction officially recorded. Therefore, the invoice date has essential information regarding payment, as it dictates the credit duration and due date of the bill.

This is especially crucial for entities offering credit, such as net The actual due date of the invoice is usually 30 days after the invoice date. Likewise, companies offer customers the option to return items typically have a deadline based on a certain number of days since proof of purchase, as indicated on the invoice.

Since the advent of the computer era , people and businesses have found it easier to rely on electronic invoicing as an alternative to paper documents.

Electronic invoicing, or e-invoicing, is a form of electronic billing to generate, store and monitor transaction-related documents between parties and ensure the terms of their agreements are fulfilled. These e-documents may include invoices and receipts, purchase orders, debit and credit notes, payment terms and instructions, and remittance slips.

Digital invoices are normally sent via email, web page or app. Advantages include the following:. E-invoicing includes several technologies and entry options and is used as a general term to describe any method by which an invoice is electronically presented to a customer for payment.