How to create an invoice: a step-by-step guide

How To Create An Invoice In 2 Minutes: A Step-by-Step Guide

A well-structured and comprehensive invoice is crucial for maintaining professionalism and ensuring smooth transactions between you and your clients. If you don’t know how to create an invoice, don’t worry, by the end of this article you will have all the knowledge you require to create an invoice.

In this article, we will learn about all the things you need to take care of in an invoice, what an invoice looks like, and how to create your first invoice. Let’s dive in!

How To Create An Invoice: 15 Simple Steps To Follow

1. Choose An Invoice Template or Software

You can start by using a pre-designed invoice template available in various formats (e.g., Word, Excel, Google Docs) or opt for invoicing software that offers customizable templates and additional features to simplify the invoicing process.

The easiest way to do this is to use an Invoice generator like Refrens. Over 2 million invoices have been created in minutes using Refrens.

2. Header

Begin your invoice with a header that clearly states the word “Invoice.” This helps your clients quickly identify the document as a bill.

3. Contact Information

Include both the seller’s and the buyer’s contact information:

Seller’s & Buyer’s name (or business name), address, phone number, and email address

4. Tax Identification Numbers

If applicable, include your tax identification number (e.g., VAT or GST number) and the buyer’s tax identification number. This is crucial for tax compliance purposes.

5. Assign An Invoice Number

Assign a unique invoice number to each invoice you create. A common approach is to use a numerical sequence (e.g., 0001, 0002) or combine letters and numbers (e.g., INV-0001). This helps with record-keeping and makes it easier to reference a specific invoice in case of any disputes or queries.

6. Add The Invoice Date

Include the date the invoice is issued, which will help determine the payment due date based on the agreed-upon payment terms.

7. List The Products or Services

Add each product or service provided as a separate line item, including a brief description, the quantity, and the unit price. Calculate the total cost for each item. Be as clear and specific as possible to avoid confusion.

8. Calculate The Subtotal

Calculate the sum of all line items and display it as the subtotal before any taxes or discounts are applied.

9. Apply Taxes, Discounts, And Fees

If applicable, include any taxes (e.g., sales tax, VAT, GST), discounts, or additional fees (e.g., shipping, handling) that affect the total amount due.

10. Determine The Total Amount Due

Calculate the final amount your client owes by adding the subtotal, taxes, discounts, and fees.

11. Set Payment Terms & Due Date

Specify the payment terms (e.g., Net 30) and calculate the due date accordingly. Ensure that these terms are clearly stated on the invoice.

12. Provide Payment Method Details

Specify the accepted payment methods (e.g., bank transfer, credit card, UPI, etc.) and provide the necessary details for each method, such as your bank account number or payment link to facilitate the payment process.

13. Add Notes or Additional Terms

If needed, include any additional notes or terms relevant to the invoice, such as special instructions, return policies, or thank you messages.

14. Add Your Branding Elements

Customize the invoice template by adding your logo, choosing your brand colors, and selecting a professional font to reflect your brand identity.

15. Review & Send

Double-check your invoice for accuracy and completeness before sending it to your client via email or your preferred method of delivery.

By following these steps, you’ll create a professional invoice that is easy to understand and helps improve your chances of receiving timely payments.

Wait though! Do you know everything there’s to know about invoicing? Why not check out our blog on Invoicing Basics: Everything You Need To Know, just to be sure?

Sample Invoice Template

Here’s a sample invoice template created using Refrens’ online invoice generator:

Sample Invoice Template

A Quick Video Guide To Creating Invoices

Creating Invoices is just the first step. To ensure that your business has a healthy cash flow and to get timely payments from your clients, you also need to implement an effective invoicing process. Learn how you can implement an effective invoicing process for your business >

If you want to create GST invoices, read this article on how to create GST invoices in 2 minutes >