Invoicing can be a daunting task for sole traders, especially if you’re new to the game. But don’t worry, we’re here to help.
This guide will walk you through the process step-by-step so that you can get started on how to make an invoice like a pro.
An invoice is simply a document that itemizes the products or services you provided to your customer, along with the corresponding prices. This serves as a record of the transaction and helps your customer (or client) keep track of what they’ve purchased from you.
Now that we know what an invoice is let’s move on to find out what makes a good invoice.
There are certain key elements that should be included in every invoice you send out. These include:
For more information, see the ‘What to Include in Your Australian Small Business Invoice’ template by Westpac.
Here are the steps you will need to take when creating an invoice.
The first step is to choose an invoice template. There are a variety of templates available online, or you can create your own using a word processing or spreadsheet program.
The next step is to enter your contact information. This should include your business name as the header, address, Australian Business Number (ABN), phone number, and email address. If you’re creating your own invoice, you may align this chunk of information to the left.
And don’t forget your logo. (You can place it in the header along with your business name).
The next step is to enter the customer’s contact information under your own contact info. Be sure to include the customer’s name, address, phone number, and email address.
The next step is to enter the invoice details on the right-hand side of your document. This includes the invoice number and date.
For the description of the products or services sold, the quantity of each item sold, the unit price of each item, and the total amount due, make a neat and tidy table.
At the bottom, add any additional notes, your payment terms, and finish with a thank you note to your customers.
Once you’ve entered all of the necessary information, the final step is to print or email the invoice to your customer.
Manual invoicing – like outlined above – can be time-consuming and error-prone. If you want to save time and automate your invoicing process, consider using online invoicing tools like FreshBooks and MoonInvoice.
These tools provide you with a one-stop solution for invoicing and make it super-easy for sole traders like yourself to handle your own finances without the help of a bookkeeper or accountant.
Most online invoicing apps allow you to:
Before we end this article, we want to quickly touch on some of the most common invoicing mistakes that small business owners make so that you can avoid them in your own business.
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