Invoices are crucial business paperwork that helps keep a track of all completed jobs. In most cases, you also need invoices to share with clients so they can process your due payment. It’s a detailed outline of the work completed and the corresponding rates, along with other important information that is documented on a single page. If you are a new business or haven’t been using invoices, HomeStars will help you generate one for you, that you can use easily for billing purposes.
What Are Invoices?
An invoice is a document that lists your services or items rendered to a client along with the amount to be paid for the same. The itemized list makes it easier to bill clients as you can have a consolidated document, which lists the prices, details of the work along with discounts, payment terms and much more.
Why Is It Important to Create Invoices?
Invoices for small businesses or even established brands are extremely important for their sales funnel as they help keep a track of the business. It is crucial for businesses to keep invoices for services rendered as these also help clear up the payment backlogs. When you raise an invoice, you may not get the payment right away as the customer will go through it and then initiate the payment. However, having an invoice with all the essentials ensures that there is a paper/electronic trail of the work done and the pending payment. Neglecting invoices can lead to delayed payments and gaps in your business account books which can cause trouble during tax season. At HomeStars, as we are in the business of growing yours, we have made this process extremely simple with these tips below.
What Should Be Included in an Invoice?
Here’s a checklist of the things that should be included in your invoice so you can keep a better track of the things to be taken care of:
- Company details and invoice number: Include the company name, logo and address for communication including phone and email in an attractive header. Also, mention the invoice number – this can be as basic as #0001 or a combination of the month and number like #AUG001.
- Client’s details: Also make use of the header space to add the details of your client – name, address, email, telephone number, type of work/place of work etc.
- Outline the work done: In a separate outlined box below the header, outline the broad categories of work done or services provided to the client. You can add the finer details if needed underneath these points.
- Put a price against each item: Put a number against each item to clearly indicate what each service or product costs.
- Provide a total: Add up the total and apply any labour charges, payment plan details, taxes or discounts to arrive at the final number.
- Provide additional notes: If there are notes like a warranty or a special offer applicable, mention these in a notes section underneath the billing table.
- Payment terms and details: At the bottom of the document, put the payment method, details needed for processing the same and any terms and conditions as applicable.
- Sign and stamp: Do remember to sign and date the invoice along with a company stamp if you have one.
Here’s a sample invoice template that you can use to create your invoice for the clients:
You can use this template to readily generate invoices for the projects completed. Get started with HomeStars today to get your hands on more useful business tips. You can also get in touch with a customer success manager to learn more about how HomeStars can help you grow your business.
