As a business owner, you will most likely need to create and send out sales invoices to your customers when they make a purchase. A sales invoice is a document that records the details of a sale – including the buyer and seller's name, description of goods or services sold, quantity, price per item/service, total amount due, etc. This document is used to provide proof of purchase and serves as a record for both parties of the transaction.
Creating an effective sales invoice can be a bit tricky, especially if you’re new to it. With this in mind, we've gathered some advice for you!
What Information is Included in a Sales Invoice?
Ultimately, what information you choose to include in a sales invoice depends on the details of your business and the nature of the transaction. However, there are some key elements that all sales invoices should include:
- Date - when was the product/service sold?
- Buyer and seller's names & addresses - who is participating in the transaction?
- Invoice number - each invoice should have a unique number, which can be used to reference the sale.
- Description of the product/service sold - what exactly was sold?
- Quantity and price of each item/service sold - how much did it cost?
- Payment terms - when and how should the buyer pay for the item/service sold?
- Total amount due - what is the amount to be paid in total?
- Contact information for follow-up - where can the buyer reach out if they have any questions or concerns?
When creating an invoice, put yourself in the shoes of a customer and make sure that all of the necessary information is included. This includes the buyer and seller's contact information, description of items sold, payment terms, and any relevant discounts. Finally, include a clear due date for payment so the customer knows when to expect it.
Tips to Make a Sales Invoice
- Start with the basics – Make sure to include the company/seller name, address, and contact information.
- Show relevant details – Be sure to include a description of the item purchased (including SKU number, if applicable), the quantity purchased, and any discounts applied.
- Include payment details – Make sure to indicate the billing period (e.g., month-to-month, quarterly, etc.), payment terms (e.g., Net 30, COD), and the due date for payment.
- Make it easy to pay – If an invoice isn't simple to pay, customers won't be motivated to do so. Consider providing multiple payment options (e.g., credit card, PayPal, bank transfer) and make sure your customers know how to make a payment.
- Include shipping information – If applicable, be sure to provide details on shipping charges, delivery date/time, and any relevant tracking numbers.
- Include your contact information – Customers will inevitably have questions about their invoice or need help paying it. Make sure you include your contact information in the invoice so they can reach out to you with any questions they may have.
Using an Online Tool
Finally, the number of free online invoicing tools available makes it easier than ever to create and send professional, organized sales invoices. Most of these tools allow you to customize invoice templates and provide automated payment options for your customers. All you need to do is enter the customer’s billing information and product details, generate an invoice, and send it on its way.
Although it might seem daunting, creating your own sales invoices doesn’t have to be time-consuming or complicated. Good luck!
