Invoice Templates

If you own a business or have made a major purchase from one, you might have a basic familiarity with invoices. But what is an invoice, and why does your business need one? Let’s look a little closer.

Understanding Invoices and Their Purpose

You might wonder: What is an invoice for? An invoice is an itemized document that serves as a sales record and formally requests payment. Businesses typically send invoices to customers when payment is expected at a later date.

Creating invoices also establishes a clear sales record for the business, making taxes and revenue tracking easier.

Key Elements Every Invoice Should Include

When deciding what to include on an invoice, start with the basics. Usually, an invoice should at least include the following:

• Contact information
• Individual invoice number
• Date of the invoice
• Due date
• Date of service
• Detailed individual line items
• Amount of money due for each line item
• Payment terms
• Accepted payment methods

Detailed invoices reduce confusion and show customers what they’re really being billed for.

Even when you promptly send invoices, though, you may still struggle with collecting payments on time. That’s why invoice payment terms are so important. Payment terms let the client know exactly how long they have to deliver payment. Here are some examples of common terms:

• Net 30/60/90: Payment is due within the stated number of days from the invoice date.
• End of Month (EOM): Payment is due at the end of the month in which the invoice was sent.
• Due Upon Receipt: Payment is expected as soon as the client receives the invoice.

Your invoice should also specify any late payment penalties. To discourage late payments and avoid cash flow problems, some businesses choose to offer early payment discounts.

Common Types of Invoices Explained

You might wonder: What is an invoice for, exactly? That depends on the type of invoice. Invoices are used across virtually every industry. Consider these common types:

• Cleaning Invoice: Most professional cleaners encourage prompt payment by invoicing customers immediately after delivering services. Generate a cleaning invoice with our template today!
• Construction Invoice: Construction projects involve materials and labor, and invoices help customers understand exactly what they’re paying for and when payment is due. Use our template to create your construction invoice now.
• Consulting Invoice: Consulting clients are often billed hourly, but fee schedules can be very different depending on the firm. Clear invoices reduce confusion and lower the risk of payment disputes. Create your consulting invoice now.
• Catering Invoice: The right invoice clearly outlines charges for food, service and setup/teardown. When clients understand what portion of their payment is going toward each expense, they may be less likely to try to dispute charges. Generate a catering invoice using our template!
• Photography Invoice: Keep a record of orders and help clients understand what they owe with high-quality invoices. Create your invoice with our photography invoice template.
• Landscaping Invoice: Invoices help you keep track of the costs of plants, hardscaping, labor and other expenses. Generate a landscaping invoice with our template today.
• Freelance Invoice: If you work for yourself, invoices can help you keep track of your earnings. They also provide clients with a record of the work done and help reduce confusion over pricing and billing. Our template can help you create a freelance invoice.
• Plumbing Invoice: Plumbing repairs can be costly, and customers often aren’t sure exactly how much they’ll owe when they call a plumber to address an issue. Invoices can help them understand what they’re paying for. Generate a plumbing invoice in minutes.
• Roofing Invoice: Roofing projects often take many hours and ample materials. Depending on the condition of the roof, clients may end up owing more than they had anticipated. Create a roofing invoice with our template.
• DJ Invoice: Help clients understand what their payments cover with a streamlined invoice. It only takes a few minutes to create a DJ invoice with us.

The right invoice is an asset to your business. In most cases, all types of service agreements should be paired with clear invoices to clarify client obligations and protect your company. And with us, it only takes minutes to create one.

Invoice vs. Bill vs. Receipt

Invoices, bills and receipts aren’t exactly the same, and knowing how an invoice differs from a receipt can help keep your records straight:

• Invoices are sent to request payment, usually at some point in the future.
• Bills are sent to request immediate payment.
• Receipts are issued to confirm payment.

Although this isn’t always the case, invoices are common in business-to-business transactions. Bills are often sent to individual customers.

How Invoices Are Used in Business Operations

Invoices aren’t just bills. They’re used to request payment, create a sales record and track your revenue. A custom invoice makes it easier to keep track of your money, and the right one can help you protect yourself. Thankfully, it’s easy to find professionally reviewed legal forms when you turn to ConsumerShield.