You set up a business and sell goods and products to your clients and customers. This means you need to generate an invoice.
But, how do you create a free invoice online? In another case where you have been running a business for so long, you might be wondering if there is more information you might include or not when you draft your invoices.
It is crucial to get hold of an easy online invoice generator that helps you generate an invoice efficiently in both cases. However, you can also opt to create a free invoice online too.
Learn to generate an invoice with us! Further, you can manage inventory features on your business with the help of Asaan retail too.
However, before that, let's dig into what is meant by invoice and why it is essential.
What is an Invoice?
An invoice comes under the type of bill that businesses send to clients and customers. It is sent to them, asking for payments from clients for the products and goods they bought. Invoices include the payment total you are charging for your services and the related information. Further, it includes specific terms and conditions too.
Invoices are an essential part of bookkeeping too. This is because businesses need to keep information about sales and income for tax and accounting. Invoices are different from receipts, which acknowledge payment only. Further, it is different from purchase orders, which notify intent to buy goods and services.
How to generate an invoice? A step-by-step guide:
Have you ever wondered about what information to include in an invoice? There are specific key points to include to create a free invoice online for payments. Follow the steps mentioned below without requiring an online retail invoice creator:
Step 1: Make sure your invoice looks professional:
The first step in putting up an invoice together is to ensure it looks professional. You can do this on your word processor or an Excel sheet. Further, you can opt for free templates from the internet. Word processors also include invoice templates for free, depending on your program.
For your invoice to look professional, you must use professional fonts and styling that makes your brand stand against everyone. Also, add colors and logos that complement your business.
Step 2: Mark your invoice clearly:
Your customers need to know that they receive an invoice. Try to add the word 'invoice' at the top of your document. This increases the chances of you being paid on time. It is a kind of request you make for payment, which helps you stand out against other documents your client has received.
To generate an invoice, you must have a unique identification number. This is essential for you to maintain records. It would be best to opt for a reference number for all the invoices you have raised and ensure that you don't have any duplicates.
You can opt for a sequence of numbers that raises gradually. Or you can use letters in front of numbers, which might be specific for a particular client.
Step 3: Include company name and information:
This step requires you to include your company's information and details of the company you are invoicing for:
- Your business name, address, and contact information
- Your client's company name and address. Further, it includes the person's name too to reach the right person.
- Your registered company name and registration number in case you are a limited company. It should include the formally registered name too.
Keep in mind if you are a limited name and want to add the names of your directors, make sure you include the names of all directors.
Step 4: Write a description of the product and service you are charging for:
When you generate an invoice, make sure your client knows what they are paying for. It doesn't have to be detailed, but it should include all the information related to the products. In such a case, the client gets to know what they are paying for.
After all, if they don't know what you are charging for, they might inquire about the invoice. This would result in payment delay once you have written a description of each product, including quantity and prices accordingly.
Step 5: Don’t forget to mention dates:
You are required to add dates, such as:
- The date you deliver the product or supply
- The date you create a free invoice online from a free invoice generator
You can add the supply date in the description section of your product or supply. Further, add the invoice date on the top of it and your date, address, and other contact info.
Step 6: Add up the money the client owes:
You can mention the product amount one owes to you alongside service charges. Next, add both of them and then write the total downwards. Further, if you agree on a discount with a client, mention it when you generate an invoice. Next, subtract that amount from the total.
If needed, mention the VAT amount too.
Step 7: Mention payment terms and conditions:
You might have agreed to specific terms and conditions beforehand. However, it is all verbal. Therefore, it is important to pen down the terms and conditions on the invoice. So, if you expect a client to pay you in a certain number, mention it down in the terms and conditions section.
Secondly, it is essential to mention how you want to receive the payment. A few options are cash on delivery, bank transfer, or pay you in person. If you want to pay in your bank account, mention it in the section.
Include clear payment terms. It makes it easy for clients to pay you and help you with the business's cash flow since it encourages instant payment.
How to send an invoice?
The quickest and easy way to send an invoice is through email. You can attach your invoice with a PDF file, preventing fraudulent acts. After you have sent an invoice, wait for a day or two and then call them up to check if they have received it. Drop a gentle reminder.
Alternatively, you can opt for online retail invoice creator software or download an app to generate an invoice on your phone.
One such efficient software, Asaan retail, helps you with order management, inventory management, accounting management, complaint management, and much more. The software is easy to use and helps you resolve all your queries.
Therefore, install Asaan retail software today, and opt for a 15-day free trial to integrate your business effectively.
