Creating simple invoices for your small business is one of the smartest ways of billing your customers for any services done or products sold. Proper invoicing is essential when running a professional business and this matters even more so when you’re starting up with a new business.
Launching a small business is exciting. You’ve spent many hours dreaming about the day your business opens and now it’s all actions go. But have you considered essential factors such as integrating invoicing systems that allow you to manage the most basic accounting requirements of your organization?
For many business owners, managing the administration part of their company can be time-consuming. But it can be kept simple and you can start by streamlining your invoicing system so it’s straightforward and effortless.
Read on as we talk about why small businesses should keep invoicing simple and how to make an invoice in no time at all.
Why Simple Invoices Are Best for Small Businesses
Running a business is hard work. Making sure that all operations run smoothly and professionally is challenging especially when this is your first business. And in order to be successful, you need to keep a close eye on your finances. Cash flow is essential which means invoicing your customers as soon as a service is provided or a sale is made is crucial.
But does the prospect of creating invoices intimidate you? It shouldn’t if you keep it simple. And simple invoices are often the best for small businesses like yours. They give all the necessary details making it easier for your client to pay faster.
Simple invoices streamline how you manage your day-to-day finances. You can issue invoices quickly and efficiently, record all sales, and keep your financial reports up to date. This also means you can focus less on time-consuming administrative tasks and more on areas of your business that need growing.
But what is the best way for small organizations to issue simple invoices? This is when you need to explore installing a simple invoice software platform for all your invoicing requirements.
What is Simple Invoice Software?
The way business works nowadays has changed dramatically and the current economic situation encourages business owners to become nomadic. More new small business owners are looking for ways to simplify the way their company operates and this includes issuing invoices on the go.
However, simple doesn’t mean tacky! No matter how small your business is, you want to keep it professional. Installing simple invoice software gives you scope to create and issue invoices that will impress your customers and get them paying faster than normal.
The platform also allows you to do business anytime, anywhere – at home, from your office, or while you’re on the road. When you use simple invoice software, you can take advantage of the following features:
- Downloadable apps: Installing invoicing software on your mobile means you can create and send invoices wherever you are. This allows you to keep your business on track while preventing delays such as sending out invoices on time.
- Templates: Gone are the days of creating an invoice using Word or Excel. You can now select from a range of templates that suit your brand while keeping invoicing simple. Your invoices will also look professional.
- Faster payments: Simple invoices can include a pay button which makes it easier for your customer to make a payment as soon as they receive your invoice.
- Financial reporting: Your accountant will be able to keep all financial reports up to date when you have a better invoicing system in place. Better accounting means you have peace of mind all your records are in order.
- Online facilities: Technology allows businesses to operate digitally more than ever before. You can now create and send invoices online, simply and efficiently.
Installing simple invoice software really simplifies your accounting system while saving you time and money in the long run.
The Benefits of an Invoice Maker for Simple Invoices
The benefit of using an invoice maker for simple invoicing allows you to run your business from day one without any hitches. Keeping an eye on your cash flow is crucial at all times but even more so in those first days of opening your business.
With an invoice maker, you’re not only creating simple invoices but you’re also getting the following benefits:
- Better customer experience: Not only will you impress your customers with professional-looking invoices but they’ll find it easier to pay you when they receive your invoice with all the necessary details included.
- Cash flow management: Instant reporting tells you which invoices have been paid and which ones need to be chased up. You’ll also be able to see your company’s revenue status at any given time.
- Recurring invoices: Instead of wasting time issuing recurring invoices, you can rely on invoicing software to handle it automatically.
- Inventory tracking: You can now keep an eye on your inventory and manage your stock better. This means you can also issue simple invoices knowing you have the stock in store.
- Allocate team members: By allocating invoicing to team members, you’re freeing up time to focus on other aspects of your business.
It makes sense to start your new business by using an invoice maker from the first day you open doors. Processing invoices properly is essential for keeping your finances in order but it can also become a tedious administrative task. But with simple invoice software, you have an invoice maker that simplifies the way you do business.
How to Make a Simple Invoice
When billing a customer, you want to create a simple invoice that includes only the most basic information. This document should be streamlined and easy to read, making it straightforward for your customer to pay.
Use this step-by-step guide to help you make a simple invoice.
Step 1: Pick a Template
If you’re using invoicing software, decide on which template you want to use. Keep it simple and find a template that allows you to capture all the basic information which will be detailed in the following steps.
You can also design a simple invoice template using Word or Excel and incorporating all the information as detailed in the steps below.
Step 2: Business Contact Details
A simple invoice should include all contact details. These details include your company’s contact information such as a telephone number, email address, and physical address. The name of the company must be listed and you can also insert your logo if you want to. The company’s website details should also be included if you have one.
Your company contact details should be clearly marked at the top of your invoice.
Step 3: Customer Contact Details
You’ll also need to include all your customer contact details for billing purposes. Make sure you get your customer’s full name, physical address, email address, and phone number. With the company contact details being at the top, the customer’s billing details normally come directly below.
But, this does depend on the template style you’re using. Some invoices have the company details on one side and the customer contact details on the opposite side.
Step 4: Invoice Date
Including a date for the invoice is essential. It allows you to keep your financial reporting in order and your filing easier. It also means your customer knows the date of the service or sale and allows them to keep all their records straight as well.
Step 5: Invoice Number
Assign a number to your invoice. Simple invoicing benefits from having an invoice numbering system. Not only can you assign a number using a sequence but it allows you track all invoices for basic accounting purposes as well as for filing.
An invoice number also gives both you and your customer a reference number whenever a discussion needs to take place around a specific invoice.
Step 6: Listing Services and Products
Listing the work done or products sold is crucial and needs to be included on any invoice issued to a customer. Keep it simple though by using a table format with columns and rows. By doing this, you can enter all the details required while making it easy for your customer to see them at a glance.
Details should include the following:
- Brief description of services or product
- Number of hours worked or quantity of products
- Fee or pay rate for services rendered or cost of product
- Subtotal and taxable amounts
This information makes up the body of your invoice and it’s key to keep it simple but detailed enough so your customer has all the information required on the page.
Step 7: Payment Terms
Every invoice, simple or not, should include the payment terms of your business. This can be briefly explained together with the type of payment methods you accept. These can be cash, credit card, debit card, bank transfer, online payments, recurring payments, and payments via mobiles.
If you charge late payment fees make sure you include this information on your invoice.
Step 8: Bank Account Details
Make sure you include your bank account details on every simple invoice issued. This minimizes any reason for your customer not paying the invoice on time. If you’re using an online invoice, you can include a “pay button” feature which simplifies payment even further.
Step 9: Amount Due and Payment Deadline Date
Always include the amount due at the bottom of the invoice. If there are applicable taxes, then include them after the sub-total column and before the total amount due. The payment due date should also be clearly stated next to this amount charged.
The amount due should be obvious on your invoice and you can do this simply by using bold font and even a different color to the rest of the information on the invoice. To avoid any confusion, stipulate the payment due date by using a specific format such as “Payment Due: 30 May 2021.”
Using Online Invoice Templates
While you can manually create a simple invoice, downloading an online invoice template really simplifies your invoicing process. A customizable template includes the table already inserted, saving you the hassle of drawing up columns and rows. All you have to do is add the basic information details.
Online invoice templates allows you to customize its appearance to suit your company brand making it instantly recognizable by your customers when it lands in their mailbox. What’s more, depending on the software you’re using, invoice numbers are automatically assigned in sequence whenever a new invoice is created.
An online simple invoice can also include a feature for adding up the costs, giving both the sub-total and amount due at the bottom of the invoice. And don’t forget the pay button for fast and efficient payment!
With online invoice templates, you can create and send from your mobile or your tablet from anywhere, allowing you to run your business nomadically. For small business executives who don’t want to waste time fussing with administrative tasks, customizable online invoice templates is the solution.
A Final Word on Simple Invoices
Starting and running your own small business is both challenging and rewarding. The following words will remind you of recognizing both the risk and the possibilities of being an entrepreneur.
“As ever, the accountant in me saw the risk, the entrepreneur saw the possibility. So, I split the difference and kept moving forward.” – Phil Knight, co-founder and emeritus chairman Nike.
So, while you’re out there exploring all the opportunities to grow your business successfully, make sure you’re using smart approaches to managing the operations of your company. Consider installing simple invoice software available as an app from Billdu. This way you and your team can keep operations running smoothly no matter where you are.
Simple invoices keep you moving forward, knowing your company finances are being kept in order and your cash flow is healthy and growing with every invoice issued. Take time to explore the invoice software available on Billdu’s website and watch your business grow with simple invoices.