A Step-by-Step Guide to Preparing an Invoice Template

If you’re not familiar with invoices, it might be very difficult for you to create one. You might’ve received one or two invoices in your lifetime, but you probably didn’t pay much attention to the document itself. However, if you are a freelancer, a sole proprietor, or a business owner, you will need to know how to write invoices to get paid. 

The good news is that creating an invoice is made easier with several accounting software applications being present nowadays. You can choose from several templates and customize your invoice accordingly. But if you still want to write your invoice, there are several easy steps involved. And if you find it too difficult, we provide free invoice template download which will make your life so much easier. 

There are five (5) easy steps in preparing your free invoice template to download. You must follow each step carefully without skipping any. Skipping a step can result in delayed payment or can result in a payment being billed to the wrong address. The five steps are as followed:

Step 1: Adjust the information on the invoice to reflect your business.

Step 2: Fill out the customer’s information as necessary.

Step 3: Fill in the due date and assign the terms.

Step 4: State the purpose of the invoice. 

Step 5: State the total amount due.

Step 6: Include a link for online payment or remittance information.

Before we get into the meat of the matter, let’s go over some basic information you need to know. 

What you need to know: the Invoicing basics

If you’re already familiar with creating an invoice, that’s great. But if you’re a novice and know nothing about invoice creation, you should continue reading.  

What is an invoice? Well, it’s a simple way of collecting payment from customers and clients for the business. If you sell an item, such as a t-shirt or cap, and don’t collect payment immediately, you can send an invoice to that customer. The same can be said about a service being offered. Whether you’re selling goods or services, you can send your customers invoices to receive the payment at a later date. 

Compared to chasing down payments via mail or by phone, Invoice templates have proven to be more efficient. Not only will you be saving time, but you will be more efficient as our invoice samples can be reused several times. You will only need to modify a few terms here and there, such as the date and the amount due.

How to prepare and send an invoice

An invoice can be created from an accounting software. If you don’t use one, you can consider getting one for your business. Numerous sites offer free invoice template downloads. If you’re looking for pre-made invoice templates to download, you can find several on our site. 

However, the same information will be required to complete a proper invoice letter. Here’s what you’ll need. 

Step 1: Adjust the information on the invoice to reflect your business.

At the top of the invoice, you should place a heading that exactly explains what the document is about. This will save you and the recipient a lot of time when going through all those random documents and invoices going around. You should also include your logo or business logo in your header which will make it look more professional and presentable. This also gives the customer a sense of confidence when they are to cash in on an invoice. 

Somewhere at the top of the invoice template, you should include the name, address, email, website, and phone number of your Business. This will make it clear who is paying and who is getting paid. It makes things simpler and clear. In addition, if any issues should arise regarding your invoice, the customer can get in touch with you via the contact information. Ensure all the information is correct and placed where they are visible. This can eliminate payment delays.

However, if you’re using an accounting software, you would be preparing your invoice letters using it. So, most of your business information (name, address, email, telephone) will automatically be added to the invoice. Customizing your invoice templates with your business information will make them more recognizable to your clients. It might also help you to get paid faster. 

Step 2: Fill out the customer’s information as necessary.

One crucial aspect of every invoice template is the customer’s information. You should always treat your clients properly, especially if you’re a small business owner. 

You should include your customer’s name and title on the business invoice statement, especially if you’re addressing the invoice to a large organization. You can include other contact information such as the customer’s email, address, and phone number. This will make it easy and clear who the recipient and payer should be. If you have an incomplete email address or mailing address, payments can be delayed for several weeks. 

You should also have a unique identifier or invoice number to separate it from the rest in the batch. This will help to differentiate between the multiple invoices that come in daily and possibly from several customers. It’s a good way to stay organized. The identifier can be either a unique chronological number, a filling code, or an identifier of your choosing. For example, you can label your invoices in chronological order starting from ‘Invoice #0001’ to ‘Invoice #0010’ and so forth.

Step 3: Fill in the due date and assign the terms

By assigning terms and conditions, you are letting your customers know how long they have until payment. These terms can include penalties that will be applicable for late payment or not paying in full. These can outline any additional charges that will be incurred if the bill is not paid on or before a specified date. Your terms of payment should usually dictate that an invoice be paid in a particular number of days (30, 60, or 90 days from the issue of the statement letter). You can let the customer know exactly when you are to be paid, whether it be upon receipt of the invoice, upon completing a service, or later in the future. 

If they don’t pay within the allocated time, late fees can be applied to the past-due amount. The average number of terms on an invoice statement is usually 10. The terms of the transaction are not compulsory for a formal invoice, but it helps to make the invoice more apparent.  

Step 4: State the purpose of the invoice

Always state the purpose of the invoice statement before you hit that download or send button. If you’re selling a good or service, ensure to add a detailed description that explains clearly what was offered. There are several things you want to include in your description. 

• The name of the item or service rendered, and a detailed description of each.
• The price of an item or service. 
• The quantity or amount of a good or service sold. 
• The product’s cost after you have multiplied the good’s price by their quantity. This can also be an hourly fee. 

If you’re charging per hour, you should use a free invoice style that clearly explains the information. 

Step 5: State the total amount due.

This is probably the most obvious thing to be included on the list. After you have stated the cost of each good or service, along with any applicable extra fees, tax, or discounts, then you should state the overall total price. This will be the reference point for your customer and the total amount that you should be paid.

Step 6: Include a link for online payment or remittance information.

Nowadays, Online Business Invoice Statements simplify the process of payment by allowing clients to pay via credit card, debit, or ACH transfer. When click to pay is selected by a client, they will be redirected to a form where they can fill in their payment information, review the company’s terms and conditions, and finally click ‘pay’. This is a quick way to receive payment. The only downside is that you’ll have to pay service fees. 

However, if you prefer a traditional method, be sure to include payment information so your clients know where to make payments. 

Final Thoughts

After including the following elements, ensure to organize and present your invoice letter in a professional and pleasing format. Of course, if you are uncertain how to make an eye-catching invoice letter, you can make use of our pre-built freelance invoice templates that can be downloaded. 

Our pre-built invoice samples are bound to leave an impression on your customers. Get one and try it now!