For example, if you sell furniture, you may want to say something like, “Oak dining table and four chair set.” Being clear and descriptive about the item you're selling lets your customers know what the invoice is for, and that can save you time in follow-up questions. Service date: Including a service date is optional, but if you decide to note it, this would be the date of the transaction or the date you performed the service.Be sure to supply a price breakdown if the customer purchased multiple quantities of an item or received a discount on the sale.
Service details: Be as clear as possible when describing the product or service you’re providing.In terms of how to itemize an invoice, a sales invoice should generally include the following: You don't want to cause any confusion for your buyer and risk late payment. Find out if buyers expect a seller to provide a separate tax invoice. If it's standard practice for a seller to include the unit price, cost for shipment, sales tax, or a copy of the sales order, make sure to include it. When itemizing your invoice, consider what's normal for your industry. Remember that your invoice may serve as your customer's receipt, so be sure to list the price for each item, as well as any discounts or credit memos, taxes, or additional fees for things like shipping. You also want to be as transparent as possible when sending an invoice, making sure to specify not only your rates but also the terms for payments. After all, the whole purpose of a sales invoice is to get paid. Supplying as much information about the products or services provided helps you avoid any potential delays in payment. Instead of sending one large invoice to your customer, interim invoices break down the cost into smaller payments as the project progresses. Interim invoice: An interim invoice is another way to denote a payment plan.Pro forma invoice: This type of invoice serves as an alert for how much a project or service will cost once the work is completed.Mixed invoice: A mixed invoice consists of both credit and debit invoices in one, and the resulting balance can either be positive (as in the customer owes an amount) or negative (in which the customer is owed a credit).
Debit invoice: Debit invoices happen when a business needs to increase the amount a customer owes them.Recurring invoice: Recurring invoices are best for businesses that bill on a consistent schedule, be it weekly, monthly, or yearly.Credit invoice: This type of invoice is issued when a business needs to refund or offer a discount to a customer.It’s what companies issue to their customers to bill for goods or services and get paid. Standard invoice: Also known as a final invoice, this is the most common invoice for businesses.For more information, please see our Privacy Policy Page.As you do business, there are various types of sales invoices you may need to use, such as: Our affiliate compensation allows us to maintain an ad-free website and provide a free service to our readers. This can affect which services appear on our site and where we rank them.
While we strive to keep our reviews as unbiased as possible, we do receive affiliate compensation through some of our links. Our mission is to help consumers make informed purchase decisions. Clarify all fees and contract details before signing a contract or finalizing your purchase. For the most accurate information, please ask your customer service representative. Pricing will vary based on various factors, including, but not limited to, the customer’s location, package chosen, added features and equipment, the purchaser’s credit score, etc. Using a free invoice template may be a better fit if you have a simple billing process or only need to create a few invoices.ĭisclaimer: The information featured in this article is based on our best estimates of pricing, package details, contract stipulations, and service available at the time of writing. You can also find invoice templates in Microsoft Word and Google Docs that you can customize and save. There are lots of invoice templates to choose from online, such as Wave Accounting, which is free for life and includes many other features. It makes sense to use invoicing software if you have a high sales volume or need advanced features, such as payment tracking and automation.Īlternatively, you can use a free invoice template to create your statement. Some popular invoicing software includes Zoho, QuickBooks, Xero and FreshBooks. In most cases, the software will automatically populate an invoice with your business details, including your company’s name and mailing address. Invoicing software lets you quickly and easily create invoices and share them with clients. You can use invoicing software or an invoice template. Next, you’ll need to decide how you’ll create your invoice.