Invoice Examples

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Invoices are the modern-day solution for businesses that require efficient record-keeping regarding their revenue, income and sales. To put it simply, it is a bill requesting payment from clients for any purchased goods and services. A typical invoice has a description of the purchased services or goods along with payment details. It is different from a receipt as a receipt typically acknowledges payment receipt while an invoice asks for payment.

Basics of creating an invoice

While there are tons of invoice templates available online, it can be overwhelming and therefore it’s easy to work with one that allows for easy editing. , by simply using Excel or Word processor on your computer. However, the overall style and font should be in accordance with your organization letterhead, ideally with brand image. Therefore make sure to include relevant colors and a logo.

The heading of the document should simply be “Invoice,” as it ought to make it stand out from the rest of the documents. It may also make your client more attentive to the fact that they are required to pay on time. To avoid mixing up or creating duplicates, it is crucial to have an identification number for every invoice you create.
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  • What are different types of Invoices?

    The following are six common types of invoices used by accounting to send to customers:

    1. Pro forma invoice: a preliminary bill of sale sent to buyers in advance of a shipment or delivery of goods.
    2. Interim invoice:  a way to invoice a long term or large project by breaking down the invoice into multiple payments that corresponds to completion of a certain portion of the project
    3. Final invoice: sent to the customer once a project has been completed. Relates to the final payment.
    4. Past due invoice:  related to a outstanding invoice that has not been paid as of its original due date. If a company extends credit to its clients, it might experience situations where it must collect a past due invoice.
    5. Recurring invoice: a type of invoicing in which a company automatically charges its customers for goods or services at regular fixed intervals. 
    6. Credit memo:  a transaction which can be applied to a customer's  existing invoice as a payment or reduction (discount). This might happened in case both seller and buyer agree that good not delivered will be credited.
  • Question & Answers related to Invoice Examples

    • What else should be included in an Invoice?

      An invoice must include: Company name and description: This would have details of not only the company that’s sending an invoice but also of the one receiving it. Therefore it must have the contact details, names, and addresses of both the companies. Description of the products: While this does not need to be very long, it should be clear and sufficient enough for the recipient to understand what they are paying for. Following the description, the price and quantity of each item must be mentioned. In the end, you may put the total amount owed. Dates: Dates for both the supply of items and the creation of invoices should be mentioned. The date of supplying goods or services can be mentioned in the description, while the date of invoice creation can be mentioned next to your name, contact details, and address at the top. Terms and conditions: Here, you may mention the deadline for payment along with the relevant bank details. You can also mention any relevant consequences (such as extra charges) for a purchase if the payment is not made on time. However, it must be done professionally and politely as you wouldn’t want to lose a potential future client.

      How can you send an Invoice?

      The fastest way nowadays, is to have your invoices sent via email. However, it’s recommended to convert them into a PDF format that is not editable. This is important in order to prevent fraud or identity theft. The email should be on point with a short description of your company and relevant details about the invoice in the body of the email. The subject line should also be precise enough for the recipient to know that it is an invoice. It is also a good practice to follow up with the client once an invoice has been sent for the purpose of confirmation.
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  • The fastest way nowadays is to have your invoices sent via email. However, it’s recommended to convert them into a PDF format that is not editable. This is important in order to prevent fraud or identity theft. The email should be on point with a short description of your company and relevant details about the invoice in the body of the email. The subject line should also be precise enough for the recipient to know that it is an invoice. It is also a good practice to follow up with the client once an invoice has been sent for the purpose of confirmation.

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