Use our easy to use free invoice template to get started.
The word invoice linked with our daily lives in the form of bills, shopping purchases, rent etc.
Where ever payment is involved, invoice is directly attached with it.
E.g. If you go for shopping and you buy something, whatever it is, you have to pay a certain amount, against which you will get the desired product along with the receipt. This receipt is called “Invoice”. Basically, it is the evidence that you have paid for the products or services you have rendered.
In history, trades were made between the cities and countries. At that time, people use different tools to record the transaction. Like in early ages, stone were engraved as an evidence of the transaction, after that leaves and piece of cloth replaced the stones.
The invoices can be prepaid or postpaid means, in some cases you have to pay advance to get the desired services. Let’s take an example from our daily lives, in term of utilities, first we consume the product and then we pay according to the consumption. Other best example is house rent and car rent, in which we have to pay certain and fixed amount of charges in advance. That’s why these invoices are called fixed bill invoices.
There are different invoices which are used by the consumers including sellers and buyers. Invoice pattern may also differ from origin to origin. The important thing is that contents of the invoices remain the same. This information is considered as compulsory element of any invoice.
Invoice is not just for the buyer only. When a buyer purchases goods or obtain services, he will get the invoice, which is called “Buyer Invoice”. And when seller gets the invoice, it is stated as “Seller Invoice”. Buyer invoice is also known as account payable invoice and seller invoice can be named as account receivable invoice.
In simple words, we can also state that an invoice is an agreement between the two parties. In this agreement, one party promises to provide goods or services and other party promises to pay amount in return. The other important factor in this agreement is that buyer consent is compulsory. Invoice is important for both seller and buyer as it protects the rights of the both parties. In case, buyer denies or is unable to pay the agreed amount, the seller can file a suit and can claim his amount which is due at buyers end. Hence, invoice is necessary and considered as key document in any file suit and helps to claim his right.
Now let’s discuss the important aspects of the invoice, which are its contents. An invoice can be of different patterns or designs but important thing is its contents. These contents make it more useful and handy for the both parties.
First take a look on the types of invoices available and used in the markets as well as in different industries.
If you find this information irrelevant, you can skip it and move directly to desired information. This article was written for beginners as well.
Types on Invoices:
There are different types of invoices which are designed according to specific industry need. Some of them are as follows;
Standard invoices are those, which are commonly used by the sellers. We have seen these kinds of invoices in our daily lives.
The contents of the standard invoices are seller log, seller’s company name, address, contact number and email address. Then buyers detail mentioned on invoices like buyers name, address, contact numbers and country name. After that, amount, quantity, product descriptions, and tax amount is added in the invoices.
You can also mentioned notes, terms and conditions like payment method, delivery schedule, insurance and any other necessary information which needs to be mentioned or communicated to buyer.
These are invoices which we use on daily basis and linked with our daily lives. You might be surprised, all the bills which are processed or paid monthly to sellers. Usually these invoices are generated according to consumption we have made.
Just like standard invoices, additional information is mentioned on invoice is total consumption, arrears etc.
Progress invoices are mostly used in the construction industry, because the payments in this industry are not paid lump sum. These payments are made according to work done or completed. In construction industry, the project completes in a longer period of time and usually huge amounts are involved in it. That’s why progress invoices are very useful in this industry.
Contents of the invoices are almost like standard invoices. But additional information is incorporated like “Progress” in the percentage form.
Recurring invoices means, where benefit is not occurs. All those invoices which occurs when buyer or consumer agreed to pay a certain amount of money and benefit yet to be availed. The best examples for these invoices from our daily lives are house or car on rent. In these scenarios buyers and sellers both agreed on a fixed amount and then invoice is generated after the payment is made.
Pending invoices are common in the businesses where goods or services sold on credit basis. It means you can get goods immediately just after paying the partial amount and the buyer have to pay in different agreed installments. That’s why these invoices are called “Pending Invoices”.
All the information on invoices are just like standard invoices but additional information “Due amount or balance amount or pending amount” is also mentioned on invoice.
Well! We are much aware with these invoices. These invoices are commonly used in trade related business. For instance, if you want to import or export some goods or services from other country, then these invoices are used. Without these invoices, your shipments will not be cleared.
Proforma invoices are generated before the shipment of goods. In these invoices important factor which is compulsory is the acknowledgement of the invoice by buyer.
These invoices are also used by the Government officials of the country to calculate the exact amount of duty and taxes on the exports and imports.
When we are talking about pro forma invoices then commercial invoices also comes in the mind. Like Proforma invoices “Commercial invoices” are also used in trade businesses internationally.
Question will rise in your mind, what’s the difference? Well! Contents of the commercial invoices are the same, but the only difference is the actual position, price and description of good which are shipped. Another difference is that commercial invoices are generated when goods are shipped to the buyers, whereas Proforma invoices are generated before shipment.
If you find this information irrelevant, you can just skip this part and move to relevant portion.
Now we will go through the content that how to use invoices makers;
Currently, there are lots of invoice makers available on internet. Now let’s go through these invoice makers one by one;
This website is specifically designed for invoice generation. If you want to make invoice, then you have to go to web address or click on the above hyperlink. After this a web page will be open and you can generate invoice easily just by following below steps;
Select currency type on the box which is on the right side of the web page.
You can start you invoice from any field. You will see on the right side of the webpage, the reference number, date, payment terms, due date, total balance due. Now come to the left side, first editable block shows “+Add your logo”, beneath it, a block shows “Who is this invoice from”, and in this column you have to mention your company name. After that, click on “Bill to” column. In this block you will mention the name of the consumer or buyer.
After inputting all the information in the above mentioned fields, next field you have to fill is the item and its details. You can also add additional fields as per your requirement just by clicking on the blue tab named as “+Line item”. After this, add quantity, rate, the total amount will be address automatically.
On below that, there’s a box designated for Tax amount, you just have to input tax percentage in it. Just below tax tab, you will see “discount” and “Shipping” tab. In these both tab, you can enter amount if you want to give discount or you are charging shipping charges.
Then in the below section, in the notes column, you can mention any related information, which you want to communicate it to buyer. After that, there is a box for terms and conditions. In this box, you can mention delivery schedule, your payment methods, late fees related, warranty terms and any other, which you are offering to your consumers.
Screen shot of invoice form attached for your reference;
When you are done with the form filling, then click on the blue tab named as “Send Invoice” or you can also save invoice for later view as well. You can also download invoice in the “PDF” form if you want to deliver it hard copy to the customer.
Oh yes! One more thing if you think you have to fill invoice form basic information. Then don’t worry, you can also save your templates for future use as well.
After opening the webpage, you will see blank invoice page. Now just by following below steps, you can easily generate Invoice for your business.
In the first step, you have to input details regarding your company, like company name, owner name, company’s official address, city, zip code / postal code, and country name.
In the second step, you have to clearly mention your consumer or buyer name in the blank fields. This is label as “Bill to”. In this field you will input client’s company name, clients address, city, zip code/ postal address and country name.
In this step, you have to input information like invoice number, which should be unique. So that you track record, or any other information related to your order. Basically unique reference helps you monitor or track your record easily.
In this step, you will mention complete details of your products, along with product type, product code, quantity and rate. The Zoho invoice maker will automatically calculate the total amount. You can also add more lines for your products, if you needed. You can add lines just by clicking on “Add Line Item” tab.
After all the above steps, don’t forget to enter the “Tax” percentage. It can be zero but if you are charging tax, then you have to enter percentage of the tax.
Now discuss the “Terms and Conditions” or “Notes” portion on the invoice. You can input information like payment methods, warranty or guarantee related information and any other information which will be used in future to safeguard in case of legal actions.
In last step, you can save your working just by clicking the save tab. If you want to print it, then click on the “Printer icon” tab or get a downloadable PDF file as well.
You can also save your template or working just by clicking on “Save button”.
Invoicely also providing “Invoice Maker” for its users. These are very easy to use. You can also refer to help or tutorial. But if you just follow these below steps you can easily make invoice from this invoice maker.
Then you have to mention the details of buyers, on whose name the invoice is to be generated. Same information like seller, the buyer name, company name, contact number, and address etc.
In this step, you have to input the body of your invoice. It’s completely editable and you can type whatever you want.
This is step is different than the other invoice makers.
Next portion is of items descriptions, quantity, unit price and total amount of the products.
In this step you have to input tax details in the form of percentage. The invoice maker will automatically calculate the amount on the products total.
In this last step, you can write whatever you write the last portion of the invoice, in this portion you can mention terms and conditions, payment method, insurance, warranty or guarantee and any other information, which is necessary to communicate to buyer.
There are many web pages available on internet, who are providing free of cost invoice maker services. Some of web pages are also providing services other than just invoice making. Additional services include maintenance, monitoring and scheduling of invoices. These websites charge a nominal amount but they remind you about your invoices which you have made or schedule in the future date.
Further, they also help you in reconciliation and record keeping of invoices electronically. So, you don’t have to worry about all the things. Being a small business owner where resources are limited, these kinds of services from third party are very helpful.
Except the reconciliation and record keeping, some websites are providing services of payments through a secured system. With the help of these services your buyer or consumer can pay you directly and just in two to three business days, the amount will be credited to your bank account. The payment procedure is secure, and integrated with different firewall which also protects your and buyers confidential information. So you and your buyer can completely rely on it.
Some of the web pages requires sign up or account creation but they are also free. But crux of the all these web pages is very simple and similar. Format, pattern and lay out can be different but purpose and information incorporated in the invoice pattern is same. You can choose invoice maker from above stated websites or you can look for different websites who are providing similar services.
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