Why you should use an itemized invoice
When you deliver a wide range of products and/or services, you need a precisely detailed invoice to make sure you are compensated properly for all your hard work.
An easy-to-use itemized invoice template in MS Office format will make sure all the correct costs are recorded, while your customers can see exactly what they are being charged for.
A clear and well-organized invoice also reflects favorably on your professionalism, and instills confidence and credibility in your reputation and excellent work.
Once you've downloaded your free invoice template, you'll need to customize it to fit your specific business. Here are the 10 key things to include on your invoice:
- Title and Description: Name the project and briefly describe what type of work your client is being invoiced for.
- Company Details: Add your company name, address, phone number, and logo to the top-right corner.
- Customer Details: Under "Bill To", add your customer's name, address, and contact information.
- Invoice Number: Include a unique invoice number to help you track down this invoice in the future. You can format this based on sequence and customer. For example, if you're sending your very first customer their first invoice, the invoice number could be 001-001.
- Dates: Include the date when your invoice has been issued and the date when payment is due.
- Line Item: Add individual line items for each unique good or service you provided. For each line item, include a brief description, quantity, individual unit price, and total price.
- Subtotal: Add up the subtotal of your goods or services, before tax has been applied.
- Tax: Indicate the tax rate applied to the subtotal. This is legally required to provide on invoices, and your rate may differ depending on where you run your business.
- Total: Outline the total amount due from the customer, after tax.
- Notes: Include any additional info your customer should know, including terms of service and payment terms (for example, payments are due 30 days after the invoice has been issued).
- Look through our fantastic selection of itemized invoice templates in different styles and colors, and pick the one you like best
- Download the template in the format you like to use – such as Word, Excel, PDF, Google Docs, or Google Sheets. It’s easy to do and it’s absolutely free!
- Add in your business name, address, office and mobile phone number, and the business you are in
- Insert your lovely business or personal logo, along with your website address, and any images you like to use to showcase your brand
- Add in your client’s name and all the correct contact information
- Insert a unique invoice number
- Insert the invoice date and your expected payment due date
- List the goods and services you’ve provided, along with the respective quantities and prices, and hours and rates. This itemized invoice template makes it easy to clearly and accurately list all the items and services you are charging for
- You can easily add lines to include any extra costs you incurred that need to be billed separately from your itemized list of products sold and services rendered
- If you are including a discount for any reason, such as to reward a loyal customer or entice a new one, add a line explaining the discount so your client knows they are getting an amazing deal
- Calculate your total fee, including applicable tax, and enter the total
- Include your payment terms, including the methods of payment you accept
- It’s always a good idea to add a personal touch by including a note at the end of your invoice, such as thanking your customer for their business, or to tell them how much you enjoy doing business with them
- Save a copy – and send it off to your customer
When is the right time to send an itemized invoice to your clients?
The right time to send an invoice depends on the type of business you do.
If you are selling a product, give your customer the itemized invoice at the time of purchase.
If the project will take several weeks, or months, you can invoice for a percentage of the estimated cost up front, with the remainder on completion.
Whatever payment cadence you choose, make sure it’s clearly noted on each invoice, and clarify what portion of the final ‘cost’ has been paid to date.
Invoice tips that are perfect for any business
Details, details, and more details!
Be as specific as you can about the services and/or products you have provided. Make sure your invoices are all clear and well-organized, but don’t leave out any important details. Let your clients know exactly what they are paying for.
Use a timesheet
If you charge for your expert services by the hour, make sure you keep an up-to-date timesheet to track your billable hours, and include your timesheet as an attachment to your itemized invoice.
Highlight your ‘payment due’ date
When it comes to listing important items on your invoice, don’t forget your payment due date! If you want to encourage even faster payment, offer a discount on payments received before your deadline. Even a small percentage off your total bill is incentive enough for some clients to get their payment in fast.
Accept the latest payment methods
It’s a good idea to accept the most up-to-date electronic payment technologies, such as e-Transfers, Interact, and other online payment methods that can be done on a smartphone. Make it easy for your customers to pay you right away!