Invoicing the clients you have served can be a time consuming and highly complex task. It is little wonder that more business entrepreneurs do not enjoy this task. In fact, more entrepreneurs prefer hiring some employees to take care of this part of the business. Accountants are capable of doing this job too. However, entrepreneurs who cannot hire employees for this work have the option of using a blank invoice template. The template simplifies your work.
All you have to do is to fill in the blank spaces with details of your customer. The blank template is a good model for somebody who has no idea how an invoice should look. It also helps individuals who do not any idea of the fields that should be on an invoice. With this blank template, you can create invoices in future without any difficulty.
The most important feature on the template are the fields that you should fill. Below are the fields you have to learn how to fill accurately.
An invoice number is an important tool for referencing any invoice you ever sent to any of your clients. Ensure that no invoice leaves your office to the clients without the appropriate number. The number is entered alphanumerically. It has its own space that distinguishes it from any other field.
This part of the blank invoice template is for entering the details of the person from whom the invoice emanates. Use this space or field for inputting the name of the business. You may also use it to enter your own name. Do not limit this field to your name or that of your business alone. Feel free to make it more detailed by filling it with:
The information you enter here makes it easier for clients to contact you.
This field is for entering details of the person to whom the invoice will be sent. It is the field where you enter the client’s information. Be as detailed and accurate as possible. Take care lest you enter the details of the wrong recipient. Feel free to enter the client’s or recipient’s name, or any of the following information:
Here, the person preparing the invoice should indicate the date of issue. This date will help with future reference. It indicates the date the service provider issued the invoice to the client. Once again, accuracy is required in this field too. The date is important in helping you to determine whether the client is late with payments.
The due date is different from the other date you wrote on the invoice. Enter this detail on the blank invoice template, since it refers to the date you expect the client to pay. It is advisable to choose a due date that is closer to the actual date when you sent the invoice. Do not give clients forever to settle payments. Clients tend to pay after the due date.
Balance due refers to the entire amount the client should pay you. The amount refers to the entire total the client owes you. It is a summation of all the taxes, payments, discounts, and individual line items that you expect the clients to pay. It also has to be on its own field so clients can see the figure easily and know what you expect from them.
Line items refer to the list of items (products or services) for which you are billing the client. It could be one or several items depending on what the customer wants. You have to accompany each line item with the amount it costs. A single line has various components, which you must indicate. The components include:
This field refers to the actual description of each item. The field is the space you set aside for describing the item you are billing the client for. It is advisable for you to be as detailed as possible with your description. There is nothing wrong with grouping the same or identical items together.
Quantity refers to the field or space you leave open for the number of identical items you grouped together. Simply use this field for entering the exact number of products you sold to the client.
Here, enter details of the amount you charge for each individual item.
The amount refers to the total figure representing all the items you sold to your client. For example, if you sold three identical items at a rate of $10 each, then the figure you ought to enter here is $30. It shows the amount you charge for each line of items. To get this figure, simply multiply quantity with the rate.
Sub-total refers to the field you set aside for the total amount of all the line items that you add. It is the total of all line items.
Do not forget this important field on the blank invoice template. In many states in the US, you are expected to enter sales tax. In the US, 45 states have sales tax. The sales tax is percentage-based. Failure to enter this percentage could land you in trouble with the tax authorities. Do not forget to fill this field with the relevant percentage or figure.
There is a formula for getting the figure to fill in this field.
The formula is subtotal + subtotal x tax.
Whatever figure you get after doing your calculation using the above formula is the total.
In some cases, you will find a client who is willing to pay a certain amount first before you even do anything. Enter that amount in this field if you were lucky enough to find such a client. Alternatively, the client probably paid nothing, but you offered him a discount. Enter that discount here. Some clients have credit with your business. Enter the credit here too.
To get balance due, you would have to subtract amount paid from the total.
This field refers to the notes you make for the client’s benefit. It could include something such as the manner in which you want to receive payment. You could put the information that helps clients who wish to pay you via wire transfers in this field too. Publish the mailing address where you wish the client to send any document or money to you here too.
All legal terms pertaining to the business or service you offer will appear in this field. The terms and conditions as well as warranties you offer also belong here. It is a good idea to consult your lawyer for more information on the terms you can include here too. You can always edit or change the terms as your business grows or experiences changes.
Listing your terms and conditions is one of the best invoicing etiquettes you must retain.
The blank invoice template is capable of helping you to avoid a few mistakes commonly made when invoicing clients. As earlier stated, invoicing is not something that business owners prefer doing. In fact, most of them rank invoicing close to the bottom of the list of priorities. What many of them do not realize is the fact invoicing is one of the most important tasks you can do. The progress – or lack thereof – of the business depends on invoicing. It determines how much cash flow the business has at any given moment. Invoicing is the key that makes it possible for your business to get the money it needs for different projects.
With a good blank invoice template, you never have to struggle with the issue of delayed invoicing. You are most likely to postpone invoicing when you have to prepare the invoice from scratch. However, the fact that it will only take you a few minutes to fill the template with the client’s details is enough to convince you not to postpone the work. With a template in place, you can fill and send it to the client immediately you finish the project you were working on. The sooner you prepare and send the invoice, the earlier you will be paid. The only time you are exempt from sending the invoice early is when a billing agreement with the client exists.
A blank invoice template offers you the chance of practicing and improving your invoice filling skills. The better you get at invoicing, the easier it will be for you, thus helping you to avoid making some of the mistakes associated with this process. One mistake commonly made is in relation to writing vague descriptions. Why don’t you use the blank template to learn to write detailed and clear descriptions? It is crucial to fill the invoice with detailed and clear descriptions of all the various services you rendered to the client. Fill the invoice with a detailed description of the products you sold too.
Proper descriptions help clients to know what you are charging them.
It also makes it easier for them to pay you.
If the invoice is higher than the amount you initially agreed upon with the client, you should send it with an explanation. Do not forget to explain any additional expenses that you had not informed the clients about if you expect them to pay. Otherwise, they may start doubting your professionalism and sincerity. Getting customers is a tough task. Do whatever you can to retain them. Include everything the client asks for in the invoice. Details such as purchase order or Employment Identification Number should feature on the invoice if clients ask for them. Do whatever it takes to make it easier for clients to pay you on time.
Similar to the importance of including proper and accurate descriptions is the need for ensuring the invoice has all the necessary details. Once again, you can practice how to fill the invoice with all the appropriate details using the blank invoice template. A good and professional drafted invoice should have all the details. It should have the name of the sender. It should also have the client’s details. However, you will have to familiarize yourself with the laws in your state or country to know the details that must appear on the invoice. Some of the most important details include:
Formatting is a crucial aspect of invoicing. Once more, use the blank invoice template to learn how you can format your invoice, so it looks professional. Some of the things – such as incorrect dollar amounts and spelling errors – you can change on your own. However, the focus should be on the manner in which you formatted the invoice. Sloppy formatting makes the invoice to appear too unprofessional, which would mess the image you are trying to build. Clients find it easier to understand the contents of the properly formatted invoice. Therefore, spare enough time to double check the invoice and ensure it is well formatted before sending it to your clients.
Check the invoice for mistakes before submitting it to your client.
Finally, it is also worth noting that the invoice can be a highly effective marketing tool. For this reason, give it all the attention it needs. Do not fill it while in a hurry. Take your time to check that it has all the details required to convince the client to pay what you are owed. At times, clients fail to pay on time because you send them mistake-riddled invoices. Use the blank invoice template to learn everything you need. Use the template as a learning aid. Use it to practice invoicing.
Therefore, get your invoice template today and learn invoicing using it.