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You are here: Home / Finance / What Is an Invoice and How Do I Write One?
What Is an Invoice and How Do I Write One?

What Is an Invoice and How Do I Write One?

January 13, 2021 By Cade Hildreth Leave a Comment

The Covid pandemic of 2020 brought an economic downturn causing some businesses to close down completely while others looked for new strategies to stay afloat.

Whether you’re trying to grow an insurance agency during the pandemic or any other type of business, you’ve had to employ everything from new marketing strategies to hosting virtual events.

When you’re no longer face to face with your clients and customers, a professional invoice letter with a friendly tone goes a long way in maintaining a relationship.

What is an invoice and how do I write one? Stick with us to find out the answers along with tips and tricks to write the perfect professional invoice.

What is an Invoice?

An invoice is a document that a company sends to a buyer or client. It spells out the amount and price of products and/or services that you have provided.

Invoices serve an important purpose not just on your end, but on the receiving end as well. For you and your business, an invoice helps you get paid in a timely manner by providing the client notification that a payment is due on a certain date. For the client, it helps to keep track of expenses and when bills are due.

How to Write an Invoice

When writing an invoice, you can use an invoice template but be sure to include all of the important information so there’s no confusion about where the payment is going.

The word “Invoice” at the top of the page helps recipients know that it needs their attention and they are less likely to put it at the bottom of the pile.

Include your logo and company information, including contact information. Next, remember the three most important numbers to include (besides the amount due): the invoice number, the date compiled, and the due date.

Use line itemization to describe services or products and the cost of each. Clients appreciate seeing the breakdown so they know exactly what they’re getting and the price. Add the items up to include a total due.

List the payment terms and any penalties for late payment. If you have a money-back guarantee or warranty, list that information at the bottom of the invoice.

Lastly, include a personal note thanking the client for their business.

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Writing an Invoice

Now that you know what an invoice is and how to write one, you’ll have a professional, legal document as your binding agreement with your customers. Invoices help you keep track of sales and payments and show you when payment is overdue or missing.

Be sure to bookmark this site for easy access. We’ll teach you how to increase your income, negotiate a raise, lose weight, invest for cash flow, buy real estate and so much more.

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