An invoice is a commercial document that summarizes the transaction and holds the information of the product/service sold by the seller to the vendor. Not just product/service information, the invoice also holds the information of the buyer, seller, shopping details, payment terms, and also payment mode available for the buyer. If the seller is a tax registered business, then the business can also charge tax on the invoice. As the business grows, many custom regulations and indirect taxes like VAT(Value Added Tax), sales or use tax are imposed.
Using an online invoice generator like Refrens, when you create invoices and email them to the customer directly from the software, it is considered an online invoice. Other methods include creating invoices through Google Docs or Google Sheets, but it fails when you have to keep track of your invoices and payment received against the particular invoice. If you are the person creating invoices at the end of the month, then using Google Docs or Sheets is time-consuming.
Using invoice generator like Refrens make simple and easy to create invoice quickly. Not just creating, you can also manage, store, and track the invoice status. You don’t need to fear losing the invoices and can access them from anywhere in the world. The best part about Refrens is - you can create invoices online without paying a single penny. FREE INVOICES FOR LIFETIME.
Invoice is one of the major business documents used for accounting purposes. Using invoice one can easily manage and track all the payment received and due from a particular client. It helps businesses to record all the sales transactions happening between both the parties, i.e: between client and vendor. Here are some other reasons why one should invoice in business:
One of the best ways to accept payment from the clients.
To track future growth of the business.
To keep track of sales.
To keep track of inventory.
Easy to file tax returns.
Proof of sales happened between both the parties.
Easy to track pending payments.
Legal protection against lawsuits.
An invoice generator or free invoice maker is a tool used to create an invoice online without any hassle or error. Using an online invoice generator, create invoices, send PDF invoices, customize invoices with invoice templates, download or print invoices etc. which is not possible in handwritten invoices. It has become easy for small business owners and freelancers to automate the invoicing process using a free invoice generator.
An invoice is a document asking for the payment. Whereas the receipt is a proof of payment done by the buyer to seller. A receipt is proof that the buyer has received the goods or services from the seller.
An invoice format is basically the invoice template or layout. An invoice format breaks all the elements of invoice in a simple format so that it becomes easy for you to create invoice. For different professions, there are different invoice format like consultant invoice format.
Generally, the supplier issues the invoice for the goods or services they offer to the customer.
Yes, both are the same and portray the same information. Only difference is that invoice is issued by the supplier or the business providing the products or services. The same invoice is recorded as a bill for the customer or the person receiving the products or service.
There are a total 6 types of invoices created in a business according to the needs and requirements. All the invoices mentioned below carry different purposes in accounting. Creating the right type of invoice for the right client at the right time is extremely important to get sales done and get paid faster.
Standard invoice is a normal invoice created by the vendor for the client which includes all the basic details like invoice date, invoice number, payment due date, vendor address, client address, product or service name with quantity, rate, subtotal and total amount.
Proforma invoice is a non legal invoice created for the supplier to make agreement between both the parties for the payment terms and committing to deliver the products or services at a specified date and time. Create proforma invoice within seconds.
Service invoice is usually created by service based businesses who do not deal with the products. Service businesses like digital marketers, lawyers, software developers, consultants etc. charge their client hourly rather than quantity wise for the services.
Using our invoice generator, you can easily use the “Add/Rename Column” feature to hide, add or edit the column name and can charge hourly.
Commercial invoices are used by the export/import business owners which include slightly more information than a standard invoice. It has all the information similar to standard invoice and extra information like shipping details, country of supply, place of supply, total packages to be delivered and weight of the packages.
Recurring invoices are created by the businesses who charge fixed prices from their client and are charged either on a weekly or monthly basis like apartment rent, bills, subscription or any fixed price software. Recurring invoice is created and sent to the client on a monthly basis until the client cancels or ends the contract or subscription.
Credit note is issued by the supplier when the client returns the product for reasons like damage or mistake.
An invoice number is one of the most important elements of the invoice. Invoice number helps to track and organize each invoice you create. When creating invoice, invoice number should be unique for every invoice and also it should be sequentially followed. Invoice numbers can contain both numbers and alphabets.
For example: When the first invoice is created, you can assign invoice number either 001 or INV/001. The same should be followed when creating the second invoice, it can be either 001 or INV/002.
There are numerous methods to adding the invoice number. Of which the best methods are as followers.
This is the most common and easy method to assign the invoice number and also used by most of the businesses. Here your invoice number is in increasing order and starts from 1.
For example: Invoice No 001, Invoice No 002, Invoice No 003 and so on or 2021/INV/001, 2021/INV/002, 2021/INV/003 and so on.
Here, you use the date and unique number as the invoice number. For example: If you are issuing the invoice on April 23, 2021 then you can have the invoice number 2021-04-23-001. Here it becomes easy to track the invoice, date wise.
Many businesses work on different projects or gigs at the same time. Here you can assign the project number as the invoice number. For example, if you have completed the project number 185, then you can assign invoice number 185. If you are undertaking a big project and have multiple sub projects in it, then you can assign invoice number 185-001 and so on.
This is one of the rare methods, as very rare businesses assign client id to their clients. Suppose you have undertook the project of a client whose client id is 387, then you can issue the invoice with invoice number 387-001.
You can use Refrens invoice generator, to create an invoice online for free with invoice number. As you assign the first invoice number the system will automatically take the next invoice number in an increasing order. using our invoice generator, you can use all the above methods to assign the invoice number and can track, organize and send the invoice to the client.
There are some elements that are extremely important when creating an invoice. One must add all these elements to the invoice. If any of these are missing, the chances of the invoice getting rejected will increase. So one should keep all these points when creating the invoice. If you are using any invoice generator, you must check if the following elements are present or not to avoid future mistakes.
Every invoice should have a header section. It should be short and simple. Our invoice generator allows you to add the header. The invoice header should clearly convey the purpose of the invoice. In the invoice header, you can also add a company logo or personal logo.
You should also add the invoice number. The invoice number should be unique for every invoice you create. Having a unique invoice number can help you to track the invoice easily. The invoice number can be formatted in various ways. For example, 00001 or if you want to add a datewise invoice number then you can add 2020/INV/001. You can do both on Refrens invoice maker, the system will take the next unique invoice number automatically.
After adding the invoice number, the next important element is the invoice date and due date. It helps the client to clear the confusion about when the invoice received and the due date of the invoice payment.
The next important element is the reference number, and it can be anything like a online purchase order number or proforma invoice number or quotation number via quotation software. Having a reference number can easily know the details by referring to the previous documents.
When creating an invoice, it is important to add a legal company or freelancer name and all the details like address, phone number, email address. It should be different from the client information so that the client can differentiate the address between both the parties.
Add the client/company name with address, phone number, email address.
If you supply physical products, then it is necessary to add shipping details on the invoice. Shipping details include the name of the person to be delivered, address, city, state, date of delivery, transport details.
You must add the product/service name and description on the line item. If you have multiple products or services then all the items should be added in different rows. You can also add the image of the product to the item description. Our invoice generator allows you to add images to the item description so that your client can get a clear vision of the product they are going to purchase. Other than this information, quantity or hours worked, unit price or hourly rate should also be added.
Our free invoice generator allows the user to add multiple columns to the line item. You can also customize the columns by changing the name or dragging them up or down as per the priority. Same as adding you can also hide certain columns if you don’t want to show them to your client.
Add tax rate, and tax amount along with extra charges or fees you are willing to add such as packaging charges, freight charges. You can also allow discounts to the client.
This section of the invoice is the most overlooked part. You must add the terms and conditions of the company and products as well. You can also add the payment terms and preferred payment methods. Penalties or extra fees that will be added to the breaching of the agreement should also be included on the invoice.
The invoice footer includes an additional notes section, where you can add more information that you wish your client should know about it. It also includes the signature, where you can add a signature image or digital signature. At the bottom, you can add your email address and contact information.
When creating an invoice for the first time, you have to add the invoicing details to the blank invoice. Here is the step by step guide on how to create an invoice using all the essential elements of a free invoice generator.
Refrens fully-fledged invoice generator helps you to create and customize invoices easily without any hassle. Build your brand by adding your business logo and stay ahead of your competitors. Refrens support the functionality of digital signature and attachments where you can add the images, PDF files, word or excel sheets. Data on point, you can as many custom fields and columns to the invoice and can make it a data-rich document. Use professional and beautifully designed invoice templates for your business and also change the color of the invoice using magic color(available in 24 colors).
We have 4 different invoice templates that include:
Creating an invoice for your business is important but sending it to your client at the right time is even more important. Keeping this in mind, we have added multiple options to send invoices that are convenient for your customer. You can send the invoice by downloading it as a PDF or print the invoice when required. You can also use the best way - emailing the invoice directly from our invoice generator to your client. Or the other best method is sharing an invoice through WhatsApp. Not just sending, you can also track the invoice to check whether the mail is opened by your client or not. If not, then sending them the remainder is the best way to get paid faster.
When creating an invoice through our invoice maker, the due date is added to the invoice by the user. In case if the due date is not added by the user, then it automatically takes 30 days due date from the created date of the invoice. Once the invoice is mailed to an ideal client, they will pay it before the due date. But there are few clients which need to follow up on the payment. At that time reminder mail, the best way to remind the client about the payment. Using Refrens invoice generator, you will get an automated mail from Refrens about the invoice due for a particular client. You can directly send a reminder to the client for the payment. Or you can send the mail manually as well.
Generally, the payment receipt is sent after the payment is done by the client. Once the client pays your invoice, it turns into a paid invoice. You get a one-click option to send the payment receipt to your client. A payment receipt is sent to acknowledge the payment made by the client. A payment receipt is similar to the invoice, the only difference is that the payment receipt is sent after the payment is made and the invoice has the tag “PAID” at the top and payment mode at the bottom. A payment receipt includes the following:
You can easily send a payment receipt for the paid invoice using our free invoice generator.
Use an invoice maker like Refrens can help you to save a lot of time and energy, thus helps you to focus on growing your business. Here are some of the reasons:
Creating an invoice online can make your invoicing cycle faster and easy. Quickly create invoices from anywhere and anytime. Even if you are not at your office you can create, send, and track the invoices.
Automatically save your data and client data to save it for further use. You can also save the product/service name which saves your time when creating the next invoice. Using client management, you can add more information to the client data.
Using an invoice maker like Refrens, it becomes easy to get all your invoice in one place and can access any invoice within seconds using filters. Now, no need to find the invoice in old folders or files.
Easy to track your invoices. Check whether the client opened the mail or not. You can also send the remainder to the client. Know how many invoices are unpaid, overdue, or part-paid with one click.
Using Google Docs or Sheets or offline methods doesn’t provide any feature of recurring invoices. Refrens invoice generator supports recurring invoices that take place at regular intervals.
It is always harder for freelancers to get paid once the service is rendered. First, freelancers offer a service, and then an invoice is issued. Whereas, in other industries, the vendor charges the advance cost. And if you fail to collect payments then it becomes unbearable to run and manage a business. In this process, invoicing setup is one of the important parts to collect payment faster. Here is a quick and simple guide to creating invoices for freelancers or service providers.
A quick overview of what your invoice should look like:
1. Setup Invoicing Terms
Every project you take has different terms and conditions or requirements. So, it is essential to build and send a personalized invoice agreement to your clients. For instance, some of the service policies will change like due date, price, discount. It is always important to issue an invoice as per the client invoicing process, this helps you to get paid faster. In short, there should be terms and policies agreed upon and signed by both parties. Here, the best document is to create online quotation, which gives an idea to the client how much is to be paid once the work is completed.
2. Make Your Invoice Short, Clear and Error Free
When creating an invoice, be specific to the service you are offering to your client. More importantly, your invoice must be error-free. Error in the invoice can easily lead to its rejection. In addition, using technical jargon in the invoice is not recommended especially when the invoice will go in multiple hands before getting accepted. Each invoice should be understandable and should have a short and simple description.
3. Payment Policy Terms
It is a good practice to send invoices at a scheduled time. Having a payment policy term is good to get paid faster. If it is a recurring client, then selecting a specific day and time to send invoices. If you have a one-time project or recurring project then outlining the payment process at the beginning of the project makes it much easier to collect a payment, then follow up throughout the project. This gives your client an idea about when to expect the invoice and payment of the project.
Fully-fledged invoice generator to create invoices quickly and flawlessly without any hassle. Even if you are a non-tech person, our user-friendly platform makes it easy for you to create online invoices and send them to your client. Not just invoicing, do more than that. Manage your client and get ready-made client reports to know the numbers of invoices created for each client and whether the payment received or not. Get insights into your business by accessing reports like payment reports and tax reports.
Having recurring invoice features to the invoice generator is the best part as it saves a lot of time and effort. No need of creating the same invoices again and again. Simply enabling the recurring invoice option, will create an invoice that takes place at specific intervals. If you are dealing with global clients, it is always better to generate invoices in their currency. Thus, the invoice maker also supports multiple currencies like the US Dollar (USD) and countries. You can also receive the amount directly to your bank account by adding your bank details to the invoice which increases the chances of getting paid.
Just creating an invoice is not enough, more important is how fast you can deliver the invoice to your client. The faster the delivery, the chances are more getting paid. Create an invoice and directly send it to your client via email from Refrens invoice maker. Other than you can also send an invoice through WhatsApp. Refrens Invoice Maker is playing a vital role for freelancers, small businesses, entrepreneurs for making their invoicing process easier without any hassle.
If you are one of those business owners who create invoices at the end of the month, it is very painful to create invoices even if you are using an online invoice maker. Creating an invoice and sending it to your client and repeating the same process is time-consuming, especially when you have many invoices to build by the end of the month.
But need not worry about it; Refrens invoice maker allows you to upload bulk invoices that auto-generate invoices once the sheet gets uploaded to the system. Using the bulk invoices feature, you can create both TAX invoices, Non-TAX invoices. To upload bulk invoices, add your client's data and the information of the products/services you are offering in a CSV sheet provided by the Refrens. Next, upload the CSV to the system, and your invoice gets created.
Refrens provide all the necessary reports, which are useful for the users to summarize their business performance. You can make seamless business decisions by overviewing the Reports supplied by the Refrens free invoice generator. Reports help you to improve marketing plans, budget planning, and develop a future forecast.
Refrens provide client report, payment report, TDS report, vendor report, invoice report.
When you search for the invoice online, you can find many websites that provide you the invoice template. No doubt that invoice templates in some of the websites are really good. You only need to download the template for free and can easily add the details to the invoice using Google Sheets or Google Docs. But after creating a few invoices, you will know that creating and maintaining the invoice is time-consuming. As you will not be able to keep track of your invoices and it will become difficult to find old invoices. You can not save the client details. You always have to copy the original invoice and then rename it with a new one. All this process is time-consuming. The best way is to use an invoice generator that helps you to do all this work easily and quickly. Our invoice generator helps you to create unlimited invoices for free with all the invoices saved in the system itself and can organize the invoices without any hassle.
Researching and finding the best invoicing software that fits your business is hard. Even if you find one, the price of the software might be higher. Most small business owners, freelancers, startups, or small entrepreneurs can’t afford to have software at a higher price.
Once you find the invoice generator, you will notice different pricing models. Some invoice generator charges a fee for each invoice you send to your client. While some invoice maker follows the monthly or yearly pricing model where you have to pay the amount for the whole month to access the invoice software. Whereas some allow you to create invoices for free but to access more features of the same software or payment gateway you need to pay a fee.
Then there is the invoice generator like Refrens, which is completely free and doesn’t follow either of these revenue models. You can create, send, and track unlimited invoices for lifetime. No conditions. No hidden charges. You are allowed to use all the features which include recurring invoices, invoice templates, customization, client management, different reports, and many more. Refrens make revenue from the marketplace by connecting the best freelancers and agencies to the businesses for the completion of their work. Refrens Marketplace.
An invoice can easily get rejected if it is not created properly. Some of the common invoicing mistakes are as follows: