Create a Small Business Invoice with Free Templates | Paystub
December 13, 2022
A small business invoice is a legal document between you and the client that guarantees you will receive payment for your work. It contains your and your client’s contact details, due dates, work description, etc.
If you need to make an invoice for your small business but don’t know where to begin, you’ve come to the right place!
This article will walk you through the steps of creating a small business invoice effortlessly with an online generator and give you some key invoicing tips!
Should Small Businesses Send Invoices?
It may not be one of your favorite tasks to issue and send invoices, but it is one of the most crucial things you can do, as it:
- Gives your business a professional appearance. Looking professional is important, especially for small businesses, as it helps build client trust.
- Helps in the taxing process. As a business owner, you must pay taxes, regardless of your company size. The process becomes simpler with the help of invoices, as they contain both the transactions you have made and the tax balance you owe.
- Assists you with bookkeeping. Since invoices serve as a sales record, you can easily keep track of the types of sales you have made and determine how to increase your profit moving forward.
- Tracks your payments. Dates are included on invoices, making it easy for you to check for late payments and get in touch with the client to arrange for compensation.
Small Business Invoice Types
Depending on the type of small business you run, there are a few different types of invoices.
- Writer invoice. If your writing career is just starting to take off, you should create a writer invoice for every service you provide.
- Photography invoice. After the work is finished, a photographer can occasionally be refused payment. Therefore, having a photography invoice ensures your legal safety.
- Contractor invoice. To ensure everyone is on the same page, you can put your service type and payment rates in the contractor invoice and send it to the client for mutual agreement.
- Deposit invoice. You can utilize a deposit invoice when you want to demand a down payment or a partial payment before providing the service.
- Credit invoice. The purpose of the credit invoice may be to return the item, receive special offers, or settle pricing disputes that lead to a price cut.
What to Include in Your Small Business Invoice
Now that you know more about small business invoices and their importance, it’s time to find out what to include in them.
#1. Contact Information Header
In this section, you must include your contact information.
The contact details consist of the name of the business, the owner’s phone number, and an email address. You can also enter the address if the company has a physical location.
Don’t forget to include the logo for a more polished look.
#2. Customer Information
The client information is included in the second part of the contact information. These details contain the client’s name, email address, mailing address, and phone number.
Contact information is essential since it distinctly identifies the parties involved and makes it possible for them to get in touch with each other promptly.
#3. Invoice Number
One of the most crucial elements of the invoice is the invoice number. In essence, it is a number assigned to every document. It’s important as it helps with tax preparation and bookkeeping.
#4. Invoice Dates
Both the date the invoice is issued and the date the payment is due can be included in this section.
Adding the dates can help you manage the payments better. Your client will be aware of the precise due date for the payment, and if they are late, you will be able to better handle your compensations.
#5. Work Breakdown
This section of the invoice includes details on the work you do, how much you produce or deliver, how you charge for it, and how much it will cost.
For the client to be well-informed, the information in this section must be thorough.
#6. Other Information
In this section of your small business invoice, you can describe your fees and taxes from the work description section in depth. Alternatively, you can add a “thank you” note if you have nothing else to say.
#7. Payment Terms
This section essentially deals with all the payment options you accept.
For example, wire transfers, bank transfers, direct deposits, PayPal, etc. It’s vital to provide at least a few because, in case one doesn’t work, the client has the option to resort to the rest.
5 Tips for Small Business Invoicing
Knowing what to put on your small business invoice is a big step, but we’d like to take it a step further and give you some more tips on how to make the best invoice for your needs.
#1. Get Detailed Client Information
Get thorough client information before you begin working. The name, email, phone number, and home address of the client should all be included in the details.
This information is essential because, first and foremost, you need to know who you will be working with so that, in an emergency, you will have all the information you need to contact them quickly.
#2. Follow up on overdue invoices
You should follow up with your client if they are paying late. Don’t just sit around and hope they remember to send the money. You should get in touch with them and inform them of the payment deadline.
A late fee can also be implemented, which will only encourage your clients to make timely payments.
#3. Set Your Own Payment Terms
The good thing about invoicing is that you can choose when to get paid. You are the one introducing the terms because you provide the services.
You can request payment in one or two installments before starting the task or after finishing it, at the beginning or end of the month, depending on the project you’re working on.
If the client wants to negotiate over some of the terms, you should be kind, but you must always maintain your stance.
#4. Have Multiple Payment Options
Always try to make it easy for the clients to pay you. That’s why it’s great having multiple payment options, such as PayPal, wire transfers, bank transfers, credit cards, etc.
The more options you provide, the more likely it is that your client won’t get in touch with you and say they can’t pay you.
#5. Use Invoicing Software
If you don’t want to create a small business invoice from scratch and waste time using programs such as Word or Excel, you should opt for invoicing software. Using an online invoice generator will save you a lot of time, and on top of that, it’s super easy to use!
How to Make a Small Business Invoice Without a Hitch
Even if you know how to create an invoice for a small business, making one from scratch can be hard. You’ll have to use Word or Excel to make an invoice, which can be quite time-consuming and is a method that’s prone to errors since you have to write down everything on your own.
But, luckily, there’s a better and simpler solution! To make this important document, you can use our invoice generator. It will provide you with a tailor-made invoice template, which you can reuse for multiple clients. It’s simple to use, and all you have to do is:
- Open the generator
- Fill out the template
- Preview the document
Once you complete these steps, the generator will do the rest! Your small business invoice will be ready in an instant, and you’ll be able to forward it to your clients via email in PDF format easily.
- Issuing invoices is crucial for small businesses, since it helps you stay organized and makes you look more professional.
- Small business invoices are also great for tracking your payments and making your taxing process easier.
- You should always include contact details, the invoice number and dates, a work breakdown, and payment terms in your small business invoice.
- When filling out your invoice, you should always collect the contact information before you start working, set your own payment terms, have multiple payment options, etc.
- The easiest way to make a small business invoice is to use an online invoice generator.
This is it—a complete guide for creating a small business invoice.
Now that you know how to make this important document the easy way, you’ll finally be able to focus more on your job rather than paperwork. Use our template, fill out the blanks, download your invoice, and forward it to your client in a matter of minutes!