How to Prepare a Customer Invoice
Write or type your company's contact information on a sheet of paper, spreadsheet or other electronic record keeping system., Create an original customer invoice number using letters, numbers or both., Date the invoice., Describe the work you...
Step-by-Step Guide
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Step 1: Write or type your company's contact information on a sheet of paper
Remember to include an email address and phone number where they can contact you with questions. -
Step 2: spreadsheet or other electronic record keeping system.
A customer invoice number can be as simple "Job-001" or more complex, such as "Smith-Job-001." The second example is useful for repeat customers because it includes their last name along with a job number.
Future invoices should have original, sequential job numbers, which make sorting the client's job histories easier. , The sooner you begin invoicing clients for work or services you provided, the sooner you can get paid. , Use separate lines to itemize details about each service or product you provided.
Include a description of the type and quantity of materials that were used.
Service providers should offer clear details about the scope of the work performed and how many hours were spent on each segment of the work. , This is called the subtotal. , If you are reselling items, you need to charge customers sales tax for most tangible products.
Check with your state franchise tax board for licensing procedures and applicable sales tax rates. , Include this figure at the bottom of the invoice.
Always ensure the numbers are in legible, boldface type so customers know exactly how much to pay. , Examples small business owners use include NET 15 or NET 30, which means payment is due in 15 or 30 days.
If you want to be paid when the customer receives your invoice, write "Due on Receipt."
Whether you expect payment as cash on delivery (COD), cash, check or credit card, let customers know what methods of payment are accepted. -
Step 3: Create an original customer invoice number using letters
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Step 4: numbers or both.
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Step 5: Date the invoice.
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Step 6: Describe the work you performed.
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Step 7: Add up the total quantities of each material
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Step 8: product and/or service you provided.
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Step 9: Factor in sales tax based on taxable items you provided.
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Step 10: Tally the subtotal and sales tax to arrive at the final job cost.
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Step 11: Indicate payment terms that describe when you want to get paid.
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Step 12: Tell how you want to get paid.
Detailed Guide
Remember to include an email address and phone number where they can contact you with questions.
A customer invoice number can be as simple "Job-001" or more complex, such as "Smith-Job-001." The second example is useful for repeat customers because it includes their last name along with a job number.
Future invoices should have original, sequential job numbers, which make sorting the client's job histories easier. , The sooner you begin invoicing clients for work or services you provided, the sooner you can get paid. , Use separate lines to itemize details about each service or product you provided.
Include a description of the type and quantity of materials that were used.
Service providers should offer clear details about the scope of the work performed and how many hours were spent on each segment of the work. , This is called the subtotal. , If you are reselling items, you need to charge customers sales tax for most tangible products.
Check with your state franchise tax board for licensing procedures and applicable sales tax rates. , Include this figure at the bottom of the invoice.
Always ensure the numbers are in legible, boldface type so customers know exactly how much to pay. , Examples small business owners use include NET 15 or NET 30, which means payment is due in 15 or 30 days.
If you want to be paid when the customer receives your invoice, write "Due on Receipt."
Whether you expect payment as cash on delivery (COD), cash, check or credit card, let customers know what methods of payment are accepted.
About the Author
Teresa Robinson
A seasoned expert in lifestyle and practical guides, Teresa Robinson combines 13 years of experience with a passion for teaching. Teresa's guides are known for their clarity and practical value.
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