How to Create an Invoice [Free Invoice Template]

As a business owner or finance professional, you have a lot on your plate. While every task is important, creating and sending invoices should be at the top of your priority list. Without this, you’ll find it difficult—if not impossible—to get paid and grow your business.

This leads to the million-dollar question: what’s the best way to create an invoice?

If you don’t know how to create an invoice, you’re in luck. We’re here to show you the way. Here are five simple ways to get started along with a simple step-by-step guide on how to create your own invoice.

1. DOWNLOAD REV CAPITAL’S INVOICE TEMPLATE

Increase workplace productivity and efficiencies by using an invoice template. For an even more seamless invoice factoring transaction, REV Capital has created a free invoice template that can be integrated into your daily operations and help you proactively manage your finances.

Using a template created by a professional invoice factoring company creates cohesion between business owners, paying customers, and the factoring company and avoids any unnecessary bottlenecks.

2. GOOGLE DOCS

Google Docs allows you to quickly create and share invoices. With the ability to save your template, it’s easy to maintain continuity from invoice to invoice and client to client.

3. QUICKBOOKS

If you already use QuickBooks to manage your company’s finances, using this program to create and share invoices is also an option.

4. MICROSOFT WORD

Microsoft Word has several concise and professional invoice templates to choose from. These are easily customizable for simple use. If you’re using this solution, you’ll need to save each invoice and attach it to an email to your client.

5. MICROSOFT EXCEL

Similar to Microsoft Word, Excel templates are spreadsheet-based. There are several templates to choose from, but much the same as Word, sending invoices requires you to save and attach them to an email.

Of course, these are far from your only options. There are many other online programs for quickly creating easy-to-read invoices. Compare your options and find the one that works best for you.

Once you find the free invoice template that fits your business, you can rely on it time after time.

INVOICE TIPS: THINGS YOU NEED TO KNOW

Now that you know where to find invoice template tools, let’s dive into some of the more important tips to consider when creating an invoice to help you manage the process from start to finish.

1. CONCISENESS IS KEY

Invoices should include all the necessary information, while omitting anything that serves no purpose. In its most basic form, you want to include:

• Your name or company name
• Your contact information
• Your customer's company name and address
• The date the goods or services were provided
• The date of the invoice
• Invoice number
• A breakdown of costs that displays prices, hours, and/or quantities of the goods and services delivered
• A subtotal of net costs
• Discounts
• Tax
• Total amount owed
• Payment due date
• Payment method

You may be able to eliminate some of these details, such as discounts, if they’re not applicable to your arrangement.

2. KEEP IT FORMAL

An invoice is a business document. It should be 100% formal from top to bottom. Stick with the facts and business-standard language. Even if you have an excellent relationship with your client, a formal invoice is a must. Casual language can cause confusion.

3. DOUBLE-CHECK FOR ACCURACY

The last thing you want to do is share an inaccurate invoice. Not only does this confuse the client as to how much they should pay, but it also makes your company look unprofessional.

4. MAKE IT STANDARD

Every invoice should be formatted the same way for every client. Neglecting to do this can cause confusion while increasing the risk of mistakes. A standard invoice also allows you to maintain a formal, professional appearance.

COMMON INVOICING MISTAKES

Even with the best intentions, it’s possible that you could make a mistake when creating and sending invoices. Fortunately, as you gain more experience and implement a system, there’s a reduced chance of errors.

Here are some common invoicing mistakes to protect against.

• Failing to send invoices promptly: Delays in sending invoices can cause delays in receiving payments, leading to cashflow problems.
• Not including all necessary information: Invoices should include the client's contact information, the date of the invoice, a description of the services or products provided, and the total amount due.
• Not setting clear payment terms: Not specifying payment terms, such as the due date or any discounts for early payment, can lead to confusion and delays in receiving payment.
• Not including a unique invoice number: Assigning a unique invoice number to each invoice helps with organization and makes it easier to track payments and follow up on overdue invoices.
• Not providing multiple payment options: Some clients may prefer to pay with a credit card, while others may prefer to pay by check. By providing multiple payment options, you increase the likelihood of receiving payment in a timely manner.
• Not setting up automatic invoice reminders: Setting up automatic invoice reminders ensures that invoices are paid on time and can save you time and effort in following up with clients.
• Not keeping accurate records: Keeping accurate records of invoices and payments can help you stay on top of your finances and can also be helpful in case of any disputes.
• Not customizing invoices for different types of clients: Customizing invoices for different types of clients can help ensure that they contain all the necessary information and are presented in a professional manner.
• Not reviewing and proofreading invoices: Reviewing and proofreading invoices before sending them can help to ensure that they are free of errors and contain all the necessary information.

FINAL THOUGHTS

Now that you know how to create an invoice, the next step is getting paid. Unfortunately, that’s where many companies get hung up. If you’ve run into cashflow problems and need to receive funds fast, REV Capital can help.

With invoice factoring, managing your business is easier than ever. We help companies eliminate “cashflow speed bumps” so your team can move faster and focus on what matters most.

Rather than waiting for invoices to be cleared, we’ll pay you the amount upfront the same day—minus a small fee—and take on the collection process on your behalf.

If you’re ready to get started, contact us online or call us at 855-489-0310.