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How to Prepare an Invoice?Entrepreneurs who provide goods and services without prepayment use invoices for billing clients daily. Suppose you are a freelancer, independent contractor, or self-employed and just starting your business. In that case, you should understand the importance of these documents and know how to write them out correctly. In this article, we will tell you in detail about the nuances of generating an invoice.
Why Are Invoices Important?In business, some papers are required regardless of the area of your activity. These include invoices, which are essential to both performers and their customers. Of course, the most important task of such docs is to provide accurate information about sales. However, invoice creation is also needed for other purposes:
- tax payment;
- bookkeeping and accounting;
- protection from fraudsters and dishonest clients;
- business analysis and marketing.
Invoice Preparation: Easy StepsGiven the importance of this type of documentation and the fact that it needs to be stored for several years, an online generator is the best way to create invoices. Regardless of which service you use, all templates will have approximately the same structure. Here’s how to make billing papers with our editor:
- Open a template, and fill in a heading: a document ID, creation date, and due date. If you wish, you can insert your logo (if any) in the upper left corner.
- Next, enter your business data and the contact details of your orderer: name, email, phone number, and address. If you use a mobile application, this information can be taken from your address book.
- In the “Description” section, you need to list all the goods and services provided, their quantity or time taken to complete, prices, and taxes. Add as many lines as needed to fit all items and fees. Based on this data, our system calculates subtotal.
- After this list, please specify the available payment methods, discounts, and shipping costs. The total sum due will be calculated, taking these records into account.
- In the “Notes” part, you can put any manuals, recommendations, and remarks. Such extra information will help clients process the received papers and pay faster.