How do I make an invoice?

Creating accurate invoices is important if you want to get paid on time. To make an invoice, you need to provide the details about a transaction you’ve made with a customer. This includes:

  • a description of the product or service you provided

  • how much the customer owes you

  • how and when they should pay

The easiest way to make an invoice is to use a good accounting software. Your invoice should include the following items:

1. Business name and logo: This shows your customer that the invoice is from you. If your business is registered for GST, you also need to make it clear this is a tax invoice. If not, it’s a regular invoice.

2. Your contact details: A phone number, email address and physical address.

3. Your customer’s contact details: A phone number, email address and physical address.

4. An invoice number: This is important if you send more than one invoice to the same customer.

5. The date: The date the invoice was issued.

6. The details of the transaction: This reminds your customer what they’re paying for. Provide a description of what you provided the customer, and when the transaction happened:

If you provided a service:

  • the amount of time you worked    

  • the rate you charge

  • the total price of the job

If you sold a product:

  • the quantity of products sold

  • the price of each product

  • the total price of the transaction

7. The total price: Remember to add any extra fees, such as delivery fees and tax to the total.

8. Invoice payment terms: This is the time period you want your customer to pay within. Anywhere between 7 and 30 days is standard.

9. Preferred payment method: This might be cash, cheque, direct credit or PayPal.

10. Any late payment fees or early payment discounts.

 

Related terms:
What is an invoice?
How do I send an invoice?
What is a commercial invoice?

Related Xero feature:
Get paid faster with online invoicing software

Related Small Business Guide:
Create an invoice that’s accurate: 12 ideas

Accounting Terms

Accounting terms and how-tos for beginners. Let us walk you through all the basics that you need know.

How do I make an invoice?

Creating accurate invoices is important if you want to get paid on time. To make an invoice, you need to provide the details about a transaction you’ve made with a customer. This includes:

  • a description of the product or service you provided

  • how much the customer owes you

  • how and when they should pay

The easiest way to make an invoice is to use a good accounting software. Your invoice should include the following items:

1. Business name and logo: This shows your customer that the invoice is from you. If your business is registered for GST, you also need to make it clear this is a tax invoice. If not, it’s a regular invoice.

2. Your contact details: A phone number, email address and physical address.

3. Your customer’s contact details: A phone number, email address and physical address.

4. An invoice number: This is important if you send more than one invoice to the same customer.

5. The date: The date the invoice was issued.

6. The details of the transaction: This reminds your customer what they’re paying for. Provide a description of what you provided the customer, and when the transaction happened:

If you provided a service:

  • the amount of time you worked    

  • the rate you charge

  • the total price of the job

If you sold a product:

  • the quantity of products sold

  • the price of each product

  • the total price of the transaction

7. The total price: Remember to add any extra fees, such as delivery fees and tax to the total.

8. Invoice payment terms: This is the time period you want your customer to pay within. Anywhere between 7 and 30 days is standard.

9. Preferred payment method: This might be cash, cheque, direct credit or PayPal.

10. Any late payment fees or early payment discounts.

 

Related terms:
What is an invoice?
How do I send an invoice?
What is a commercial invoice?

Related Xero feature:
Get paid faster with online invoicing software

Related Small Business Guide:
Create an invoice that’s accurate: 12 ideas

Showing 35 more questions for all topics