Invoice is a sheet that contains a bill of payment or financing after the transaction of goods or services. All billing details will be written on the invoice. Generally, companies will make invoices as a means of billing payments to their customers. If you have just been in the business world, of course, making this invoice is a foreign thing that you should immediately learn. There are various ways to create invoices that you can use. In addition, you can see the invoice form through the explanation below.
The purpose of making an invoice
The ability to make good and correct invoices is very important for your company’s credibility . Properly accounting atan invoice is certainly has a purpose, namely as a receipt for the buyer and as a company accounting documents. Until now, there is no other thing that can replace the effectiveness of invoices in its application in the company.
a. Proof of Payment or Receipt for customers
Customer invoice for the purpose of receipt. The invoice given to the customer serves as an instructional document that helps pay for purchases of goods or use of services that have been done before. Generally, invoices are created when the bill is large enough so receipts are needed.
b. Company accounting documents
B agi company’s goal of making the course invoice accounting trail. This is quite important considering a credible company should keep a variety of financial records in detail so that if someday needed it can be found easily.
Detailed Invoice Form
Invoices are made for goods and services transactions. Both can be made in the form as below. The components that you need to enter include the title, name and address, purchase list, date, invoice number, and payment terms.
a. Invoice Title
You can write the title at the top middle with capital letters. For example: INVOICE PURCHASE OF SOLO COFFEE SEEDS. This aims to make it easier for your customers when they are handling lots of documents so they realize that what you are sending is an invoice document. That way, your customers can prioritize taking care of payments in the invoice document compared to other documents that are not too hasty.
b. The name and address that will pay
The company or person who issued the payment, along with the mailing address, must be listed. This information will help your customers understand that the document is actually intended for them.
c. Payee name and address
The name of the person or company who will receive payment must be included, together with the address of the recipient of the payment is also sufficient. This information will make it easier for your customers to send checks to you.
d. List of goods or services
D lists are goods or services must be specified in detail in the invoice. For example, an invoice for a particular product then include a description of the product name, amount, price per unit, and the total price to be paid. Make sure you use the column so that the detailed description is easier to read. This is important enough for your customer’s accounting documentation. If the invoice is for services such as a design or writing project, then write in detail the name of the project, description of the type of work, and hourly rates or according to the agreement. Make sure the description of the tariff is as detailed as possible so that it does not cause confusion in the future.
e. Date on the invoice
Another thing that should be included in the invoice is the date. Several types of dates written on the invoice are the date the invoice was issued, the date of purchase of the product or service use, as well as the maximum payment date. For a maximum payment date, you can discuss it with customers so they get a deal and please both parties.
f. Invoice number
Not all invoices include numbers. However, it would be nice if the invoice you made includes a number making it easier to archive invoices. If you make an invoice number into a special code, tell the customer so they don’t get confused.
g. Payment Terms
You definitely want to note the payment terms. In the midst of the payer or recipient of payments, it is important that everyone gets certainty when the payment will be made. Most invoices have a period of 30 days, which means the invoice must be paid within 30 days of receipt to avoid late fees or penalties. This is usually written as “Net 30” on the invoice. However, each company has the right to set their own payment terms. This depends on the type of business they do and the types of vendors they work with.
How to make an invoice?
For those of you who have never made an invoice, you don’t need to worry. There is an easy way to create invoices that you can learn. Invoicing can be done in two ways namely manually and using the application
a. Manufacture manually
Making invoices manually can use paper or software on a computer such as spreadsheets and Microsoft Word. The advantage to creating invoices manually is that you can adjust the template, aesthetics, and writing process completely. However, the possibility of you experiencing administrative errors is also high. In addition, if you create invoices manually then tracking documents later will be more complicated than using an application.
b. Making using the application
Using accounting in making invoices will facilitate your work. Especially if your company needs to make invoices in large quantities, it is better to use the application . By using the application, making invoices faster, and data will be tracked easily.
Easy Ways to Create & Send Invoices with Journals
Now, you no longer need to create invoices and do billing manually. By using online accounting software such as Journals, you can automatically create invoices and send them directly to customers.
Example of Journal invoice
In addition to creating and sending invoices directly, Journal also features an Invoice Reminder feature that helps you collect receivables that are due. That way, your business will avoid uncollectible accounts that can cause business failure.
In addition, with the Journal you can also set an invoice reminder schedule before, after, or when due, as well as set a minimum limit on accounts receivable along with customers who will receive an automatic invoice reminder.
