On-time payment is necessary for every business and invoices play a vital role in keeping it alive.
An invoice enables businesses to avail of smooth cash flow. Also, it keeps a proper record of every payment and keeps a clear view of financial actions. However, generating and sending is not only the major solution for on-time payment. A wrong invoice can ruin your billing game.
When it comes to creating an invoice, professionalism is equally important. It represents your business in a reputed framework and enhances its credibility on the market. You must focus on the professional look and accuracy of an invoice.
This guide will give complete information about creating the invoice. It includes all essential information which contributes to making a professional invoice.
How to Make a Professional Invoice: A Step-By-Step Guide
Brand Your Invoice
Every business has its own branding and theme color to differentiate it from the other competitors. When you create an invoice, don’t forget to add your theme color, logo, and other branding elements. This gives the perfect professional look to your invoice. When you brand your invoice, your business will automatically get brand recognition. So branding your invoice is crucial.
Add a Professional Header
Whenever you create a professional invoice, never forget to include a professional header. It will include the business name, logo, contact information, and physical address. Additionally, you must also include your tax ID as per your location.
Adding a professional header to an invoice will enhance the invoice look. Thus, the business will get a professional image on the market.
Including Invoice Information & Dates
Your invoice should also cover invoice details. It includes an invoice number which is uniquely defined for every invoice. This unique number is generally alphanumeric. You can also generate an invoice number according to the project details. Invoice numbers simplify invoice tracking.
It should also specify the invoice date (the date the invoice was issued) and the payment due date (the deadline for completing the payment). Mentioning the supply date (the date on which the service and products) are delivered.
Description of Goods/Services Delivered
Moving further into how to make an invoice, adding a description of goods and services is crucial. It must include a description, quantity, and price breakdown in the deal of the product deal. For service agreements, it should detail the time allocated to each specific line item.
Similarly, for product selling, there should be a cost breakdown for a product with a quantity. This will enhance the understanding of the service and product. Hence, no confusion arises.
Shipping Method
It is also crucial to include a shipping method whenever you create a professional invoice. You can include standard ground, international shipping, freight shipping, PO box delivery, and priority shipping. This will enhance the delivery process by providing clear information.
Tax Details and Total Amount
When you issue an invoice, you must include tax details. Every country has a different tax range so you need to include tax accordingly. You must mention accurate tax information to avoid confusion and errors. Additionally, you must highlight the total amount. This will gain the attention of the client and keep the cash flow on track. It is because when you highlight the total amount, the chances of on-time payment are high.
Including Payment Terms
Whenever you think of how to create an invoice, never forget to add payment terms. These terms vary from business to business and should be in easy language. These terms will keep transparency between the business and the client. Additionally, when the customer gets proper guidelines, it will boost the on-time payment. Payment terms might include the following points –
- The payment method you accept like PayPal, Stipe, or anything else
- Working days of the week, the client can make payment
- Net terms like Net 30, Net 60, and Net 90 indicate payment is due within 30, 60, or 90 days after the invoice date.
- Penalties for late payment
- Description of legal process in case of any dispute
Add Terms and Conditions With Additional Notes
Every business has a different billing policy and professionals can include those terms in an invoice. This will establish transparency between the business and the client. Clients will have a full understanding of billing when you mention terms and conditions in an invoice. You can cover the following points in the terms and conditions section –
- Description of applicable taxes
- Terms related to the refund policy
- Ownership of the delivered goods or services
- Terms related to the cancellation policy
Additionally, if you have additional notes to mention, you can mention them in an invoice.
Which Is the Best Invoicing Software?
When it comes to how to make an invoice, Moon Invoice is the best invoicing software to choose from. This platform provides an all-in-one solution for efficiently managing invoices. Also, it offers 66+ personalized invoice templates in PDF, Word, Excel, Google Sheets, and Docs forms. Thus, users can generate invoices in less time with accurate details. Also, it offers an auto-calculating feature that helps users calculate the price automatically.
Besides invoicing, this software is a free receipt maker and thus useful for creating and managing receipts. Additionally, it can create expense reports, estimates, credit notes, debit notes, and purchase orders. Moon Invoice is the best choice for businesses of all sizes, whether you’re managing a small startup or running a large enterprise. It serves as a reliable and efficient business partner for your invoicing needs.
Key Features of Moon Invoice
- Customized templates for invoices, receipts, and estimate
- Supporting multi-currencies and languages
- Offline synchronization
- Offers different payment options
- Barcode generation
- Import-export of data
- LIVE support through chat, email & call
- Third-party integration (with Basecamp, Zapier & Integromat)
- Provide data security
- Time tracking feature to record project hours
- Sending invoices directly through WhatsApp or email
Moon Invoice offers 7 days Free trial.
Wrapping Up
Hope you got a clear answer on how to create an invoice. Follow the above-mentioned steps and create a professional invoice to keep your billing process smooth and effective. Professional-looking invoices never let you miss any invoice and enable businesses to keep enjoying on-time payments on every deal.
A professional invoice is always a factor in the success of business billing. Additionally, with the right method of creating a professional invoice, you must choose the right invoicing tool like Moon Invoice.