There are three common ways of preparing an invoice. If you get audited, the IRS will look for invoicing inconsistencies as a sign you’ve been misreporting income. You invoice format may be “YMCA(number).” When you look back in your records, you’ll know that invoice YMCA001 was the first invoice you sent to the YMCA, and YMCA046 was the 46th.Ģ. For instance, let’s say you wash windows for the local YMCA. Invoice numbers can help you keep track of work you’ve done. Invoice numbers are important for two reasons.ġ.

This number can in fact be a combination of letters and digits. Getting paid faster is great for your cash flow.įurther reading: A Quick Guide to Proforma Invoices Invoice numberĮvery invoice you send should be clearly marked with a unique number. The shorter the payment terms, the better. This can help clients who are struggling to make payments.

In some cases you may want to use a payment plan where you take partial payments over time. Be explicit about any late fees in the case of late payments. Noting “2/10 Net 30” means a client has 30 days to pay you, but if they pay within ten days, you’ll give them a 2% discount. If you offer your clients discounts for early payment, that info will be included here. Typical terms are “ Net 30” or “Net 14”-meaning 30 days or 14 days, respectively. This is the amount of time a client has to pay you. Make sure the “total amount” is nice and clear. All of the line items are added up at the bottom and, if necessary, tax is applied. Each product you charge for should be entered as a separate line item, with a price and quantity. Show where the amount due is coming from. An itemized list of what you’re charging for

If your client needs to mail you a physical copy of a tax form ( Form 1099 MISC, for instance), this will make things easier for them.Īll your contact information should be included, in case the customer has a question and isn’t sure how to contact you. Even if you’re sending the invoice by email, you should try to include postal addresses. That means both your name and address, and the client’s. Depending on the template you use, it may also include a due date for payment. Every invoice includes the date it was sent. Your customer needs this so they know how long they have to pay you. Every invoice you send needs to include the following.

How to make invoice in word 2007