How to make an invoice?
As a small business owner, efficiently managing your invoices is essential to ensure the sustainability of your business and maintain good relationships with your clients. A well-structured and easy-to-understand invoice ensures effective communication with clients, facilitates the tracking of business transactions, and improves cash flow management. In this article, we provide a practical step-by-step guide to creating effective and professional invoices without getting lost in administrative details.
Types of Invoice
There are several types of invoices depending on the nature of the business transactions. Here are the main categories:
Proforma Invoice: this is an invoice issued before the delivery of goods or services, to inform the client of the cost and terms of sale. It has no legal value and does not allow for payment.
Deposit Invoice: this applies to transactions that require partial payment in advance, usually at the time of order or reservation. It must indicate the amount of the deposit and the due date for the balance payment.
Final Invoice: this is the final invoice issued after the delivery of products or the provision of services, detailing the order items, total amount, applicable taxes, and payment terms. It allows for the collection of the amounts due.
Understanding the different types of invoices is essential for small business owners, as it helps them know when to issue invoices and what elements should be included.
Key Steps to Create Professional and Optimized Invoices
Once you have determined the type of invoice suitable for your transaction, you can follow these steps to create clear invoices tailored to your needs.
Choose a Format and Software
There are many invoice formats: paper, electronic, or online. The choice of format depends on your preferences and your client's requirements. You can opt for dedicated invoicing software, ready-to-use invoice templates, a cash register with an integrated invoicing function, or even office tools like Excel to facilitate the creation of your invoices. Free and paid solutions are available; it's up to you to choose the one that best fits your needs and budget.
Invoice Header
Your invoice header must include essential information:
Your name or your business name
Your postal address
Your contact details (phone, email)
Your business identification number
Your logo
Ensure that this information is clear and readable to facilitate communication with your client.
Client Details
It is important to correctly identify the invoice recipient by providing:
The name of the client or business
The billing address
The client's contact details (phone, email)
This information helps avoid any confusion during payment.
Invoice Number
Assign a unique number to each invoice to facilitate tracking of your transactions. Numbering can be simple (1, 2, 3…) or complex (e.g., FACT-2023-0001), depending on your preferences. The key is to maintain a logical and continuous sequence to avoid errors.
Invoice Date and Due Date
Indicate the invoice date, which is the date the invoice is issued, and the due date, which is the deadline for payment. Ensure that payment deadlines are clear and reasonable, in accordance with your general sales conditions.
Description of Products or Services
List the products or services sold, detailing:
The designation (name of the product or service)
The quantity
The unit price excluding tax
The total amount excluding tax
Make sure to be precise and clear in your descriptions to avoid misunderstandings.
Apply Taxes and Discounts
If you are subject to VAT, apply the appropriate rate to each product or service. Also indicate any discounts granted and calculate the total amount of the invoice, including taxes and discounts.
Total Amount and Payment Terms
Clearly state the total amount due, specifying whether it is a gross amount (including all taxes) or net amount (excluding taxes). Also mention the accepted payment methods, such as:
Bank transfer (with your bank details)
Check
Credit card
Online payment platforms (PayPal, Stripe, etc.)
Specify if any late payment penalties apply in case of non-payment by the due date.
General Sales Conditions
Include a link to your general sales conditions (GSC) or add them directly on the invoice. The GSC defines the rules applicable to the sale of your products or services, particularly regarding warranties, returns, or complaints.
Thank You and Signature
Finish your invoice with a thank you message and add your signature (handwritten or electronic) to give a personal and professional touch to your document.
Creating an invoice is a crucial step in managing your business. By following these tips, you will be able to create clear, professional invoices that meet legal requirements. Don't hesitate to use software or templates to save time and ensure the quality of your documents. And above all, keep a copy of each invoice to facilitate tracking your transactions and preparing your tax returns.