How to make an invoice

To make an invoice, you need all the information relevant to the payment the invoice is for.

This includes your business details, the client’s business details, an outline of the services, their associated costs and the terms of the payment.

Knowing what goes into an invoice and how to make one is important as it affects what you will get paid.

To help you out, in this article, we will go over what is an invoice, their importance, how to make an invoice and what software you can use to help you do so.

What is an invoice?

An invoice is a document that is sent to a buyer from a seller. On an invoice, you will see a list of the goods or services provided, the associated costs, the payment terms and who the transaction is between. 

Check out our other post for a full description of what an invoice is.

Why are invoices important?

Invoices are an essential part of the payment process. 

An invoice helps the seller to get paid. It outlines the details of the sale for the buyer so they can make the appropriate payment.

Without an invoice, the buyer doesn’t know what to pay the seller and when to pay them.

It also helps the seller to track their income and business transactions.

What information do I need to make an invoice?

When making an invoice, you’ll need all of the following information:


    1. Your business information

    At the top of your invoice, you’ll want to include all the contact and business information of you and your business.

    This includes your name or business name, phone number, email, address, business number and tax information.

    You can also include your logo in this section if you have one.


      1. Client details

      You also should include your client’s details. This will help you with organising your invoices and managing your clients.

      In this section, you should add the name of your client or their business’ name, their phone number, email address, business number (if applicable) and their tax information.


        1. Invoice info

        Your invoice information regards how you organise your invoices. This means a unique invoice number for each invoice that follows a set numbering system.

        You will also want to include the date that you issued your invoice. Having clear invoice information will help you to better manage your invoices and help you track how long after the issue date is an invoice paid.


          1. Payment terms

          The payment terms are an agreed-upon set of terms that specify how the client will pay you.

          This includes the payment method the client must use (bank transfer, credit card, etc.), the payment due date, how you have staged the payment (one-time, an initial deposit with full payment due after project completion, etc.), the payment due date(s).

          In this section, you can also add any additional fees that might be incurred because of late payment.


            1. List of services

            The next part you should add is an itemised list of the products and/or services you are providing.

            Make sure to break down every single part of the services/products you are providing so the client is completely clear about what they are paying for.

            The details you should include are:


                • A short description of each product/service provided

                • The quantity of the service/product

                • The rate for one unit of the service/product

                • Subtotals for each product/service

                • Total for all services/products provided


                1. Taxes

                Depending on where you live and the type of business you own, your services/products might be subject to tax.

                If this is the case, you will need to include the associated taxes on the invoice and whether it is included in the services or charged on top.


                  1. Notes

                  Notes are not a necessary part of the invoice but if you have any additional information for your client, you can include it on your invoice.

                  You could also include a personal message in the notes section.

                  How should I format my invoice?

                  Below we have an example of an invoice made with Bookipi Invoice.

                  At the top of the invoice, we have the logo and the seller’s information, including their business name, registered identification number, phone number, email and address.

                  In the next section below is the customer information and the invoice information. Under the customer information are the customer’s business name, phone number and address. In this section, you could also include their email and business number. The invoice information that has been included are the invoice number, the issue date and the due date.

                  The next section lists all the services provided. Here you will find a list of the services provided, the quantity of the service performed (in hours in this case), the cost per unit for each service and the subtotal for each service. 

                  The section beneath this includes the payment instructions as well as the amount that is to be paid. The payment instructions will include the preferred method of payment as well as the account to transfer the money into. The totals of the invoice are also listed, including the subtotal, any tax, the total amount of the services including tax, any previous payments and the amount due or payable for this invoice.

                  In this invoice, there is also a signature section for the buyer and seller to sign, saying they agree to the terms and conditions of this invoice and that they agree that the services listed are correct.

                  What can I use to make an invoice?

                  There are a few different tools that you can use to make an invoice, depending on the complexity of your invoice and your price range.

                  If you already have a Microsoft subscription, you can use Word or Excel to create an invoice. Similarly, if you are a G Suite user, you could use Google Docs or Google Sheets. Both Microsoft and G Suite have a range of pre-made templates for different types of invoices with different designs. These can be a good solution if you have simple invoice needs or you only send invoices occasionally.

                  If your invoices are a bit more complex, you send them regularly or you want them to look a bit more professional, it can be a good idea to use invoicing software. Invoicing software is available on desktop and mobile devices. It can also range in price from free, like Bookipi, to paid options. 

                  What is the best way to make an invoice?

                  The best way to depends on your business. Factors that can impact the best invoicing option for you include your budget, the size of your business, the frequency that you invoice and the amount of time you commit to invoicing. 

                  Bookipi Invoice is a good option for small businesses looking for invoicing software. Bookipi Invoice is free for all small businesses and it lets you send professional invoices to your clients. You can also use it to accept payments from your clients! Bookipi is available on both web and mobile (iOS, Android and Huawei)

                  For easier and faster invoicing on the go, try Bookipi Invoice for free.

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