Everything You Need To Know About Invoices For Your Business

Preksha Jain -

No matter how small your business or startup is, if it caters to customers and generates money, it needs invoicing. Invoice has a lot to do with accuracy and with timing, the more the customers the more invoices and the more difficult it will be to manage it all together and keep track of it.

Invoicing works as official documentation of the transaction between the product/service provider and the customer, a formal way of requesting payments. It is important for both the seller and the receiver for things like taxation, handling finances and legal formalities. In cases of discrepancies or proof requirements it comes in need. Sometimes, if done right, it can become a very interesting standard and a sense of marketing for startups and online businesses.

STRUCTURE OF AN INVOICE

The invoice does not have a fixed format to be followed under guidelines, you can go creative with your invoices as much as you like. Instead, what you should really focus on are a few essentials of an invoice that will justify the basic requirements of both your customer and you.  

Key things to remember while making your invoice are as follows:

  1. Keep it Standard:
    Create a template for your invoice no matter how basic or creative it goes. It can range from black & white to a variety of colors. The invoice is a thing that is going to remain with your client post the completion of delivery/service, or even when it couldn't be completed, it is going to be there with your client as a constant brand reinforcer.
    Therefore, ensure that you have a standard template for your invoices, that you follow and that always reaches your clients. This does not mean you are not allowed changes in your invoice, you are, just try to keep them subtle and only when necessary.
  2. Have these Necessary Elements:
    When you have understood how important an invoice can be for your brand, consider what elements can make your simple invoice a great medium of retarget marketing.

BRANDING

What expresses your brand? Your logo? A color theme? A great tagline? You know it already, it's time you use it. Don't make it overpowering or unnecessarily obvious, but your invoice needs your brand. Use your logo on your invoice, use themes that focus on your brand, make sure your invoice speaks for you.

You also need your Legal Company Name, address and contact details, website too if you have one.

A unique IDENTIFIER or INVOICE NUMBER

Since you keep a track of your payments, it could be important for you to keep the unique number on the invoice so it becomes easier to identify. (It also gives a very professional touch to your invoice, if you are a small business or a start-up, this tip is for you)

This could also include the name of the customer and contact details if it's the same copy that will remain with you for further record keeping.

DATE

The date of transaction, the date of delivery/service, if it's in installments then multiple dates, an invoice needs dates. It is solely responsible for keeping tracks.

PRICE and DESCRIPTION

Obviously the core of the invoice is the reason why it was made in the first place.
Make sure you add all the details of the product/service provided, one liner description, the quantity and the price, following with the Total amount due.
If there are discounts involved then it goes here too. Along goes the taxes or GST and whatever other monetary information you need on paper for this transaction.
However fancy you make your invoice, remember to make this section super simple and self-explanatory.

A PERSONALISED NOTE

An invoice is about payments, but more than that it is a gratitude towards the client for choosing you. So make sure you share it with them, a thank you note and a personalised message would be a great way to do that.
Here are some creative personal messages you can add to your invoice:
- Thank you for choosing us, have a great day!
- Thank you! Sent along is a freebie for you for being so patient with us!
- Do visit us again!
- We love you!
- Thank you! Remember us when you need to shop again!

TERMS and CONDITIONS

If there are any terms you need your client to be aware of, the invoice is a perfect place for stating them.

SUSTAINABILITY

Imagine the amount of paper that is used in invoicing and if you keep a copy then double of that. Though just writing down the main elements upon already printed customised templates seems like a temptingly easy method, it is not sustainable. Now imagine, just one tap and the invoice swooshes from your end to your client. Yeah, it does sound exciting, and it is genuinely that easy, try Workbell.

CONCLUSION

With the growing pace of this world, we need help from the system and there are several apps that help a business in growing. Getting yourself an application or software to keep track of these things is a very good idea, as mentioned in the article linked above, Workbell is a great business management application, you can send a custom invoice with Workbell just by one tap! Know How

Read more: How to Grow your Business Guide: 01

Hit us up in the comment section below with any queries and we would be happy to help. If there are tips you need for your business do share with us and we will come up with a well-researched and concise article for your needs!