Use our easy to use free invoice template to get started.
With the passage of time man has developed and progressed in such a way that he has formatted a whole new range of products and services according to his need. Moreover, with the supply of utilities, services or products for him, its check and balance are also monitored through a proper method which is in the form of a written agreement.
Here we can easily refer to our buying products either from shops, restaurants, malls, and services such as hotels, workshops etc and bills from banks and other trading businesses.
On purchasing any item big or small, we are to receive a receipt stating the name, price, discount, service charges, tax, and date etc. In other words, this basically is a proof for us (The Buyer) that we have bought this item. On another hand, it is important for the seller or company to keep a record for itself that this item has been sold and automatically there should be an increase in the concerned account.
Overall, these receipts have a huge significance in trade, businesses, the stock market, wholesale market, retail markets etc. Even in minor trading of products with which cash and payment are given in return to buy and sell it, it involves a receipt. Today we name it as “Invoice”.
Another important factor is the importance of invoices when a legal suit is filled. It plays a vital role in claiming your payment from any buyer or defaulter through an invoice because invoice will play a significant role and considered as strongest evidence in any suit.
Invoices are very useful and give you support when you are stuck or dealing with fraudster or in a legal suit. Legally, this document shows and support you in getting you, your claim from the buyer. Though the invoices are the mode of payment, means you cannot get payment against it. But it will help you in claiming your right from the buyer. On the other hand, the buyer can also claim his product in case of any anomaly through legal or any regulatory, because the invoice is the evidence of making payment to the seller.
Well! Invoices are important and linked with our daily routine lives. Therefore, the contents of the invoices are also important, which makes it more useful. The main contents include sender information, buyer information, the total amount paid or due, advance payment, the due date of the shipment and payment, complete details of the product along with its description and product code.
Difference between Billing and Invoice:
We daily interact with these invoices and billing as well. Bills are issued to the consumer or buyer, where a certain amount of money is due at buyer’s end, against which consumer has already availed services or products were purchased. Whereas, the invoice is generated and contains complete details of goods and services which you will avail after making the payment. In simple words, bills are issued but services were already rendered.
Difference between Invoice and receipt:
Both invoices and receipts were used in our day to day transactions. Whether we are going to buy something or sell something. We will get receipt or invoice in return. The major difference between receipt and invoice is that the invoice is issued or generated prior payment and similarly receipt is the vice versa of the invoice. It means, when you make payments, in return, you will receive a receipt.
Difference between Invoice and statement:
Now you are familiar with the invoice. Invoice is issued by the seller and it contains necessary information like quantity, unit price, total amount and description of the goods. Basically, it’s the evidence of one transaction.
Whereas the statement shows multiple transactions with these details and it shows payment is owed at buyer end or not. You can also say that a statement is a consolidated form of different transactions.
Types of Invoices:
There are different types of invoices which are commonly used in different industries because different industries have a different business requirement. That’s why basic invoice with additional contents are used.
Some of invoices are as follows;
Standard / Normal Invoice
Value based Invoice
Sample invoices were not in the previous era. But this concept of sample invoice is very useful. I simple words, sample invoices are issued for the reference of buyer’s prior issuance of final invoices.
Just think about it, if you generate a sample invoice prior issuance of final invoice. Then the buyer will verify the content and give his consent on the sample invoice, then there will be no chance of confusion or ambiguity. The seller will get paid without any issue.
Tax invoices specifically issued for tax purposes. When you deposit or pay tax on any amount then you will get a receipt of an invoice of tax received. It is called a tax invoice. In some cases, tax invoices are also generated when a certain amount of Tax is due under a certain section or act.
Standard / Normal Invoice:
Well! there are no such invoices in the market. It means if the simple form of paper is available and it contains all the desired and required information on it. Then it is considered as a standard invoice. There is no such template or sample available for this. But the important thing is the content of the invoice.
The contents of invoices include, sender information, like address, contact number, email address and postal address, buyer information like name, address, contact numbers, unique invoice reference number, product description, product code, product type, unit price, total amount due, terms and conditions, notes and if any tax applicable.
Progress invoices as it clears from its name depend upon the progress of any project or work. These types of invoices are very useful and common in the construction industry. Because in the construction industry or businesses, the invoices are generated and issued on the basis of work done by the seller. Furthermore, these payments or work done is calculated in the form of a percentage.
Let’s take an example for this, seller generated an invoice which shows, he has completed 25% of construction as per plan and agreement and he needs USD500,000/-. Another important factor is that; the total amount due is also mentioned in the invoice. Usually, these invoices are very expensive as a huge amount is involved in this kind of businesses.
In the previous era, these types of invoices were used by different industries. But now they are not being used. These invoices are issued by the seller in favor of the buyer to show them that their specific amount of invoice is pending against any transaction.
Recurring invoices are those which occur in a fixed interval of time. The amount is fixed for a certain period. That’s why these invoices are called recurring invoices. Let’s take an example for this, if you have taken certain house or car on rent, then you have to pay a fixed amount in every month as per your agreement with the buyer and seller. In such invoices, usually, consumer or buyer has already taken benefit for it.
Bills are received by all of us in every month and we are very familiar with these. Bills are also known as invoices. These invoices contain sender information, buyer information, consumption, due date and the amount due. These are very commonly used by us. In this details of the consumer are mentioned in details. So, a consumer can verify the details this previous payments and bills as well.
Value-based invoices are used and generated after the completion of a certain task assigned or performed by the seller. In other words, these invoices are directly linked with the performance of the project. For instance, a profession like lawyers, consultants, digital marketing, in these businesses, the invoice is generated when a task or project is completed. Seller or consultants will issue an invoice bearing total man hours’ efforts and work done. In these invoices, it’s very difficult to calculate the genuineness of the man-hour efforts consumed.
These invoices are used where international trades are involved. It can also be used in local trade as well. The important factor or you can say the advantage is that Pro-forma invoices are usually accepted by the buyer.
Proforma invoices contain complete details of the product name, type, amount, unit price, total amount, buyer name and its complete information, sender name and its complete information, tax applicable if any, discounts if applicable, due date and terms and conditions. These invoices are basically used for the estimation of tax and duties. That’s why these invoices are important.
The people who are engaged with international trading business are aware these invoices. These invoices are very important and considered as important and key documents in the foreign trading business.
Commercial invoices contain sender information, buyer information, unit price, the total amount due, tax, sales tax, the due date of payment, the due date of shipment, product complete details and terms and conditions. The format of the commercial invoices is the same and very commonly used by the industries in the same manner.
The commercial invoices contents are same as the Proforma Invoice. But there’s a small difference in it. Proforma invoices are issued when as the deal is made between buyer and seller. It means, buyer, give his consent to purchase a certain product on a certain agreed amount of money and acknowledged the invoice. Whereas, the commercial invoices are generated when the goods are shipped to the buyer. That’s why the commercial invoice has significance importance than the Proforma Invoice.
Commercial invoices show a true picture of the shipment which is shipped by the seller. Another important use of the commercial invoice is the calculation of tax and dues, and customs duty on the products. Customs agents used this invoice to calculate the actual estimation of the dues and taxes on the product. The agents verify and identify the nature and type of products through these documents.
ree Invoice Templates:
Excel Invoice Templates:
Office excel also provides invoice templates for its users. Secondly, they are very easy to use. You just have to input information and you will get invoice immediately. You can also company logo, details or modify the template according to your use.
The interesting thing is that Excel provides a huge range of templates, or if you don’t like them, you can also download online.
Steps to create an invoice (Excel);
First, you have to click on “File Menu” in excel workbook and then look for the “Invoice icon” on the left side of the dialog box. After that, you will see different formats of invoices, which contains simple invoice templates to complex information invoices according to your business need. Next, you have to input custom information like name of the company, contact numbers, address, company’s logo, buyer/seller name, amount, date etc. The final step is to mark/assign your invoice a unique number, which will be helpful in future reconciliation and tracking of the invoice. One of the sample templates is attached below for your ready reference;
Word Invoices Templates:
Template formats are also available in a word for your use. You can also download different formats from the web according to your need. Most people consider word easier than the excel. You just need to fill information and invoice will be generated in real time. Just follow the tutorial, fill it and generate it.
After this, the invoice can be sent easily through the mail to the customer. Invoice template also gives you the option to lock option, through which your invoice will be locked and no one can change it without the pin code.
Steps to create an invoice in a word:
Just by following these steps, you can easily create your invoice through word templates.
Just like Excel, you will open “File Menu” and click look for the word “Invoice Templates”. Now look for the best template which is according to your business needs. Input information with the professional statement, company mission, logo, contact numbers, address, amount, etc. Now come to client information side, in this portion you have to input the client/buyer’s related information. This information contains like email, contact information, address etc. After inputting customer information, you have input customer payment methods, or channel as well as. It means a client like to pay advance, remaining balance or he wants to make payment through PayPal, cash or cheque etc. Just like Excel, don’t forget to assign a unique ID or reference number to your invoice. In the future, it will be helpful for tracking or handling the orders by invoice numbers. In the last, you have to input information like, quantity, description of the products, charges, discount (if any), sales tax, VAT, delivery charges etc., which are compulsory for the client.
Google Docs- Invoices Templates: Google webpage also provides its users to use invoice templates from the defined templates and they are very easy to use. Even you can also create an invoice from your mobile as well by using android cell version.
Steps to create Invoices;
First, you have to connect with your “Google account” and then go to “Google Drive”. Look for the button “+” or “New “and scroll down the Google docs drop-down menu. After that click on the button arrow for “Next” and here you can select different invoice formats given by the Google Docs for its users. Here you have to search invoice templates keyword in the search bar. Select invoices from the given formats according to your business needs. After selecting format, you have to fill the format like previously done in the different formats.
How to Create Invoice Manually:
In the above portion, you have learned to create invoices in the word, excel and google docs. There are other web pages through which you can generate invoices just by filling information of the sender, buyer, invoice number, date, amount, unit price and product type and description. There are lots of web pages like Zoho, Invoices are providing these free of cost.
The other services provided by the web pages include the monitoring and maintenance of invoices. The web pages’ algorithm is designed in this way that they will schedule and remind you about the date of the invoice. They worked as a notebook. In return, the web page owners charge a slight amount on monthly basis.
In this article, we have discussed the types, importance, and manual creation of invoice and creation of invoice through word, excel and Google Docs. This is not the end. It’s not compulsory to use these given or mentioned web pages. You can different templates, formats according to you need and likelihood.
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