16% of the U.S. workforce are self-employed. Among new entrepreneurs, how to write an invoice is the number one searched question. If you recently started your own business, you are probably wondering the same thing.
The best way to legitimize your business is to establish a professional way of requesting payments from clients. Sending CashApp or Venmo requests to your clients is unprofessional. And, it is hard to track down those transactions once tax season rolls around.
Invoices help you keep track of services rendered and any outstanding balances. Creating invoices for your business keeps you organized and serves as legal documents in case any issues arise. Without invoices, your business could experience a financial loss.
Learning how to write an invoice can be intimidating but this article can help you. Keep reading to learn how to format an invoice and what to include in it.
If you are new to writing invoices, you don’t have to start from scratch. There are plenty of invoice templates available for you to use. Check out this invoice template or research other templates that best suit your needs.
Many invoice templates are free, but you can also buy an invoice creator subscription service. It is up to you whether you want a free invoice template or a paid subscription. It’s a matter of preference and what you deem best for your business.
Format for Invoice
There is a general format for any invoice. The main rule of thumb is to not complicate the invoice. Let’s discuss some common elements of an invoice.
Your invoice will be created on a 8.5” x 11” document. Include your business name and logo in the top left corner of your invoice. Under your logo, place your name, your EIN, business address, and contact information.
In the right corner of the invoice, you will include the invoice number for your internal records. Under your invoice number, write down the date the invoice was created, the date the invoice needs to be paid, and the total amount due.
In the body of your invoice, include the name and address of the client. If the client is a business, then include their business name and address. Underneath the client’s information, create a table that reflects the services or products provided, the quantity, the rate, and the total cost of services.
If there is a sales tax, add the sales tax on a separate line under the subtotal. Include a note section at the bottom of your invoice to write any information regarding the products and services rendered. In the footer of your invoice, include all acceptable forms of payment.
How to Write an Invoice
Now that you have learned the basics of how to write an invoice, practice writing an invoice for yourself. Find an invoice template that suits your business needs and personalize it.
Feel free to revisit this article for guidance on how to format your invoice.