How to write an invoice
Let’s start with what an invoice actually is.
An invoice is a statement of account, showing what goods or services were sold and the price. The purpose of an invoice is to provide proof of what has transpired between the buyer and seller. An invoice could be a means for payment, or it could also be used as proof of purchase in case a refund request is made for faulty goods.
Simply put, an invoice is a formal record of what has transpired between the seller and buyer.
Before we go into the details of how to write an invoice for your business, it’s important to understand why we have invoices in the first place.
There are two main reasons for invoices
- To provide proof of what has transpired between the two parties involved, 2. As a means of payment. Rarely does anyone pay cash up front for goods or services that are ordered, especially if they’re really expensive or are used in business as a way to keep track of sales and purchases as well as tax purposes.
- The second reason for invoices is that it’s a way to gain control of your cash flow. If you have cash in your business, you must have a formal means of recording payments, and invoices are an excellent way to do that as they can be used as proof for tax purposes and for record keeping.
If you’re just starting out in business or if you’re a seasoned entrepreneur, you may not be familiar with the process of writing an invoice and the details one needs to include.
So, let’s take a look at how to write an invoice.
Once you’ve decided what you’re selling and for how much, there are still other factors that will play a role in how to write an invoice. Your clients may have negotiated a discount or rebate on the price in order to get more than one item or multiple services from you, or they may need other things included in the invoice such as insurance or freight charges.
There are times when you may want to give your customer something extra for free such as an extra week of warranty on their product so you will need to include that information in your invoice as well.
A very important thing to understand about writing an invoice is that an invoice is not a request for payment, it’s more of a formal record from one party telling another what has transpired between them, so be very clear and detailed when you write an invoice so both parties understand exactly what they are receiving and paying for.
A great way to keep your invoices organized is to use a single system that holds all your invoices. Since most businesses have the same type of invoices, the method of categorizing them will be very similar so you can easily find what you’re looking for.
The most popular method used is accounting software such as XERO or Quikbooks. These softwares track, record and reconcile everything you need to save you time and money.
A little bit about these software solutions.
XERO is a cloud-based accounting software that reduces the time it takes for businesses to process their financial data and to make decisions by providing real-time insights.
There’s no need to install anything, all you need is an internet connection and you’re ready to go, there’s no paperwork and no manual input is needed. XERO allows you to monitor your business’ cash flow on a daily basis, gives you reports on your business’ profitability, sales and purchase down to the very last detail.
You can link your bank accounts so everything gets downloaded automatically as well as use Xero’s mobile app so you can access your invoices wherever you are.
Quickbooks is the most affordable accounting software in the market with features such as QuickBooks report, store your invoices for quick and easy finding, add notes to your invoices and automatically take recurring payments.
Besides that, Quickbooks comes with more than 50 customizable reports, 100 customizable forms and editable fields.
These two softwares are extremely powerful when it comes to making sure everything is kept organized so you can make business decisions with a clear head and no wasted time.
Regardless of which software you choose, fieldd can seamlessly link in with them and allow you to automatically update your accounts all through our easy to use fieldd dashboard so why not give it a try today and see just how easy it is to run your mobile service business with fieldd and link your accounting software.
Get Started today: fieldd.me/start