Creating good invoices is an underrated requirement to run a successful business. As a contractor, you could be involved with many projects at a time. The invoices determine the exact payment you will receive. These are also referred to while calculating tax.
Here are some important things to include in your invoice.
Identify As An Invoice
It starts as simple as this. The heading of a document identifies what it is. Similarly, it is necessary to name this slip as an invoice by typing it out on the header.
The font should be clear and visible. We suggest aligning it to the center and highlighting it using any of the tools (bold, underline, capitalization).
Your Information
Next comes your personal information. This is not to be confused with your private information. Include your business details below the title in the header. This is the place to use your business logo if you have one.
The name of your business should be at the top. Follow that with the address of your physical office on the next line. Avoid cramming it all in a single line, instead, use two or three lines. The address should include the city, state, and zip code as well. Then comes your contact information. This has your phone number, any landline number as an alternate number, and your email. If you have a professional website, you can add that too.
Client’s Information
After your information, write your client’s information. Follow the same rules and format. Use multiple lines and add the name, address & contact information (along with an alternate phone number).
Ask the client beforehand who they want it addressed to. The name to mention changes according to the client type. For example: in an organization, you cannot address it to the head like with homeowners. They could ask you to charge it to their billing department.
Invoice Details
These are the factors that make the invoice unique.
Assign a number to the invoice. We suggest choosing an easy yet efficient numbering system. This helps your organization in keeping track of the invoices. Another key detail is the date of the invoice. This is the date on which you are charging the client.
Breakdown Of Services
This is the main content of the invoice.
It has all the services that you are offering to your customer along with the prices mentioned. Make the total before and after-tax and display both numbers. You can add a small description to include details like hours of work. This part should be easy to read to understand, so keep the spacing in mind.
Payment Details
This is the last section of the invoice. It re-confirms the final amount to be paid by the client. You can include the last date of payment and the various ways in which they can opt to pay.
Many of these points could seem obvious but are important. Working without an invoice makes the project tough to track, both for you and your client. Besides that, it is considered a bad business practice.
We at CustomFin make informative blogs for you. We also offer your customers easy payment plans so that you can close more deals.
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