< Back to Stories

What is an Invoice?

Save time and earn more with Invoicer.

If you are a new freelancer or have just launched your small business, you might find the invoicing process intimidating. Maybe you already have an established business but are struggling with invoicing.

Invoices are the bread and butter for any business.

So, whether you are new to the game or a business pro, we have you covered! Check out our simple invoicing guide so you can create and send professionally crafted invoices with ease.

Here are the questions we will answer for you:

  • What is an Invoice?
  • How Are Invoices Beneficial?
  • What Should an Invoice Include?
  • How Do I Create and Send an Invoice?

What is an Invoice?

Perhaps you are a photographer who captured a maternity shoot, a contractor who installed a fence, or a chef who catered a wedding. If you are selling a product or providing a service, you will need to send an invoice to your client if you want to get paid.

If you want to get paid fast, creating clean and organized invoices is the best way forward.

Specifically, an invoice gives your client a detailed description of what they purchased, the total amount owed, and the payment terms they need to follow to complete the sale. Invoices are also legally binding records that offer a variety of benefits to any business.

How Are Invoices Beneficial?

Your invoice process is crucial to the success of your business. To get paid for your hard work, you must send an invoice for every sale. Invoices are the perfect way to keep a legal record of these sales, but they also benefit your business in a variety of other ways, such as:

  • Requesting and tracking payments.
  • Tracking sales and product inventory.
  • Recording sales revenue for filing taxes.
  • Offering protection against fraudulent lawsuits.
  • Using sales data to create marketing strategies.

What Should an Invoice Include?

If you want to get paid fast, creating clean and organized invoices is the best way forward. An invoice with minor errors or missing information can easily result in late payments and looks very unprofessional. To help you avoid these surprisingly common invoicing mistakes, here is the key information every invoice should have

  • The word "Invoice".
  • Your company name, address, and phone number.
  • The clients name, address, and phone number.
  • A unique invoice number.
  • The date the invoice was issued.
  • The date the payment is due.
  • Description, quantity, and price of products or services.
  • Relevant taxes, fees, and discounts.
  • Total amount owed.
  • Specific payment terms and conditions.
  • A personalized thank you note.

Ensuring every invoice includes these details, your clients will have everything they need to pay you on time and maybe even come back for future business.

How Do I Create and Send an Invoice?

Now you have all of the information you need to start the invoicing process, what is the best way to create and send an invoice?

Well, we have come a long way since the traditional pen and paper method. Many businesses have discovered the advantages of switching to a paperless invoicing system and using either an invoice template or an invoice generator.

But which of these method is better?

Invoice Templates

Invoice templates are ideal if you enjoy manually entering information or performing calculations. Also, the customization options are endless and will allow you to create invoices in your image. However, this method also has some negative points to consider:

  • Invoice templates are much more time-consuming.
  • They are more likely to include errors or miscalculations.
  • They increase the chances of late or missed payments.

Invoice Generators

If you are looking to streamline your invoicing process, an invoice generator is the perfect tool for you. Sure, there are some cons to consider, like fewer customization options, and they usually cost money. However, there are many more advantages to this method. Invoice generators allow you to:

  • Save time and create invoices fast.
  • Keep invoices and client profiles organized.
  • Send invoices from anywhere, at any time.
  • Track payments and send payment reminders.
  • Make automatic calculations, and so much more.

With an invoice generator like Invoicer, you have the flexibility you need to create and send professional invoices in seconds. It’s simple, reliable, and is the best way to keep an accurate record of sales and ensure your cashflow stays optimal.

Try Invoicer 100% FREE for 14-days and see how we make invoicing a breeze.

See how fast and easy Invoicer is.

Read More