How to Create an Invoice Online for Clients

In addition to setting up a merchant account with a payment processing company, learning how to create an invoice is a crucial part of every business in order to actually receive payment from clients. Invoicing allows you to bill your clients for the services rendered, collect the balance, and keep records of the revenue you earned from your business.

Sending invoices to your clients streamlines the payment and collection process. Professional invoices contain details of the products or services rendered, the money owed, due date, and other information.

The invoicing process may sound complicated because, well, it used to be.  But with today’s technology, businesses can now quickly create an invoice online to send to their clients.

How to Make an Invoice

The variety of businesses that exist means that the invoicing for each type of business varies as well. As a business owner, you might consider creating your own invoice template with these key features.

1. Invoice Header with Business Information

Whether you’re a freelancer or a high-risk merchant, the invoice should include a header with the business name, address, phone number, and email as well as the company logo.

2. Client Contact Details

Before sending your first invoice to a new client, confirm the point of contact as well as the appropriate information. Make sure to list the company name, address, phone number, as well as the contact person and their email address.

3. Invoice Information

Invoices should include the date it was issued so both you and the client can keep track of timely payments.

Whether you deal with one-time or repeat clients, you should identify each invoice with a unique number in order to easily keep track of the invoices for each client as well as your business as a whole. Regardless of the numbering system you choose, the key is to remain consistent to avoid confusion. 

4. Payment Terms

As you’re setting up your business and before you’re at the point of sending invoices to clients, you have to figure out how your business will be accepting payments.

Will the business accept credit card payments online? Are you considering ACH payment processing? Are you offering payment gateways in person with payer authentication?

Make sure the invoice clearly states how and when you expect clients to pay you, including the forms of payment accepted as well as the invoice due date.

5. Itemized List of Services Rendered or Products Purchased

An itemized list of the services or products allows the client to understand exactly what it is they are paying for. The itemized list should include columns for details such as:

• Services/Products
• Date
• Quantity/Hours
• Rate
• Subtotal

Transparency will garner the trust of your clients and credibility in the industry. 

6. Applicable Taxes

The taxes you charge clients depends on the type of business as well as the location in which it operates, so it’s best to check with the local tax bureau about the amount of taxes you should be charging your clients.

7. Additional Notes – Optional

From a simple “thank you” note to a specific detail about the services rendered, clients will appreciate the friendliness and the effort to keep them informed. While notes aren’t necessary, they can make a difference in the company-client relationship and ultimately benefit your business.

Creating a custom invoice can be tedious and time-consuming while formatting all the information is sometimes frustrating. Thankfully, there are countless invoicing options available, including templates on programs like Microsoft Word and Google Docs as well as invoice generators online.

Invoice Templates

Invoice templates are a basic and practical option, especially if you just started a new business. Existing programs like Microsoft Word, Microsoft Excel, and Google Docs can generate a business invoice.

Microsoft Word Invoice Template

1. Open a new Word document.
2. Click FILE and select NEW.
3. Under TEMPLATES, look for INVOICES.
4. Microsoft Word offers multiple invoice templates to choose from so simply find one that best suits your business and fill in the details:
   • Company header
   • Your business details
   • Client’s details

Microsoft Excel Invoice Template

1. Open Microsoft Excel.
2. Click FILE and select NEW.
   • Some versions of Excel will have a NEW tab on the left side. 
3. Search for INVOICES in the search bar to narrow down your template options.
4. Select and download the invoice template of your choice and customize it with your company branding and details.

Google Sheets Invoice Template

1. Log in to your Google account or create one if you do not have an account yet.
2. Open Google Drive, click NEW, hover over the > next to GOOGLE SHEETS, and then select FROM A TEMPLATE 
3. Select INVOICE from the set of template options and then customize it with the company branding and information.

 

While these basic invoice templates are wonderful simple solutions, they do not have automation, which means you will have to send invoices manually. Fortunately, there are other resources you can use that offer invoicing options with automation. 

Online Invoice Generators

If you don’t want to create an invoice yourself or use the simple templates from Microsoft or Google, another option is to look for a free invoice generator online. The internet has countless online invoice generators and accounting software. 

Most online invoice generators are easy and offer integration features for all your invoicing needs. Eliminate human error and the hassle of manual invoicing and the collection process. 

The free versions of online invoice generators have limited features that you can take advantage of, but if you have the budget and are keen on improving productivity, accuracy, transparency, and archiving, accounting software is the better choice.

 

Advantages of Invoicing

Not only do invoices make the payment transaction between clients and the business more clear, but they can also help you as a business keep track of sales over time so you can better plan for the future. Additionally, you can determine the average time it takes for clients to pay an invoice so you can better manage your revenue. Whether you create an invoice template that’s custom for your business or you use an existing invoice template online,