5 Superb Tips to Make a Sales Invoice (with Free Sample)

A sales invoice is an official document businesses offer customers as a record of a business transaction. A sales invoice often contains a list of items and services rendered with transaction dates, how much clients need to pay, taxes due, and additional data. This document plays a vital role in keeping track of your business’s cash flow and financial accounting records.

sales invoices

So how to make a professional sales invoice? We’ve collected answers from top businesses, and here are 5 tips you should follow to create your one most properly!

1. Include essential information about a sales transaction
  • Information of both seller and customer: The basic information such as company name, email address, phone number, fax, zip code, and representative. 
  • Invoice number: An invoice number is a unique identifier for invoices. It is mainly found near the top of the invoice document so that both the recipient of the invoice and the business providing it can easily find it. You can create the invoice number manually or use invoicing software to automatically number your invoice. 
  • Invoice date: This is the date you generate the invoice and issue it to your customer.
  • A list of products and services provided and the cost: a detailed list of the items and services offered on your sales invoice including a brief description, the cost of each item, the total amount due, and the taxes.
  • Payment policies: a description of the business’s payment terms, including the forms of payment accepted (cash, check, credit card, etc.) and late fee policy.
  • Due date: The total amount due on the invoice must be paid by this date. 30 days or 60 days are standard payment terms for invoices.
2. Ensure all the data is precise and sufficient

The one and most significant thing you need to be careful of when making a sales invoice is the accuracy and sufficiency of the information.

To be more detailed about this tip, some common mistakes you could easily make when creating your sales invoice are:

  • Sending the invoice to the wrong recipients
  • Providing wrong or not enough information 
  • Irrelevant data that generates more unexpected problems
  • An imprecise calculation without double checking
  • Spelling and grammatical errors

If you have mistakenly provided the wrong or not enough data, the solution is that you have to start the invoicing process over. Mistakes on the sales invoice may result in delayed payment. 

Sale invoices should also have no errors in spelling and grammar. Before sending your sales invoice to the customer, proofread it carefully.

Above all, I highly recommend that you should take some time to check all the information more than once before sending it to the recipients.

3. Make the payment terms as clear as possible

Payment terms on an invoice inform a company’s clients when they must pay the invoice and what approaches they can use to do so. The smartest invoice payment terms for your company are those that get you paid as soon as possible. Here are some following practices for invoice payment terms that we highly encourage you to use them:

  • Discuss and specify your conditions in a contract. Before you start working, you must agree on your customer’s payment terms. Discuss to decide on a suitable plan for both parties. Put your agreement’s terms in document form as soon as you reach a consensus. If you document your terms, you will have legal authority if your customer fails to pay on time. As an invoice is not a legal document in and of itself, you will have no legal standing if you do not have a contract in place.
  • Give flexible payment options. Customers are more likely to pay their invoices on time if you provide them with more options for doing so. When customers can choose the payment option that suits their needs the most, they can complete the transaction quickly and easily.
  • Discounts for early payments. Customers are often encouraged to pay faster in advance of the invoice due date with early payment discounts. Therefore, you can meet your own financial commitment by receiving your payment more quickly thanks to these discounts. Early payment discounts are typically included with invoices with Net 30 (a term that implies paying within 30 days) and longer terms. You might offer a customer a 2% discount, for instance, if they pay you within 10 days of receiving a 30-day invoice. 
4. Send to the right recipient

Obviously, you want to make sure the right person receives and processes the sales invoice when you send one. Some issues you may face up with when addressing an invoice are:

  • Sending it to the wrong recipient
  • Sending it to too many recipients

To begin with, you might want to ask your customer’s contact who is in charge of paying you at their company if you’re sending invoices to them but are consistently receiving late payments. Your invoice is likely to be forwarded to the financial team, but it could end up in their inbox, forgotten, and lost.

Moreover, if you send your invoice to a great number of people, you will risk putting it on the back burner because everyone assumes someone else will be responsible for dealing with it.

5. Use sales invoice templates to create your own one

There are a lot of templates you can easily look up on the Internet. Pick one, customize it to suit your needs, and produce a sales invoice for your business.

You can use our following Sales Invoice Form as a reference:

That’s it! Now you can easily make a sales invoice with our tips and our invoicing template.

For more information, please contact us via email: [email protected]

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