What is a Customer Invoice?

A customer invoice is a simple document that contains the costs that a client has to pay to a seller. It is given to collect the payment that is due from him or her. A customer invoice is usually given after customers have received the products that they have purchased or after services have been rendered to them. Customers’ invoice is the simplest way of how sellers can have the payment that they need. Convenience can be one of the invoices meaning in business. Create a personal invoice or create a customer invoice and you can be sure that you can have your payment in the fastest way. Most invoices are electronic, so you do not have to go to the client’s place just to get your payment. In seconds, you can have your payment. This is the best way on how you can demand payment. Even if you may experience a customer refusing to pay an invoice, creating an online invoice still is the best way of how you can gather payments. Most customers prefer to pay through invoice because they will get the products or services first before paying. But on the part of the seller, this can be also good because they can have more customers that will buy from them. This is one of the benefits of an invoice. Adding to its convenience, you can secure customers because the payment method has a favor for them. So, create invoicing to help your business grow and to get your payments on time.

Elements of a Customer Invoice

Are you looking for a customer invoice sample? Are you about to make a customer invoice? Are you having difficulty because you do not know what to put in it? Or you do not even know what does a customer invoice looks like? Are you wondering what a customer invoice contains? Read the following and know some of the elements of a customer invoice:

Invoice Date

Every invoice has a date. You should put the date when you have made the invoice. Usually, this is also the date when you will give the invoice to the customer. This denotes that the invoice has been given on that particular date and that you will count the time for the due date of the invoice. If the invoice will be due in 15 days, you will count 15 days from the invoice date, and that is when you will receive your payment.

Invoice Number

All of your invoices should have an invoice number. This will help you to keep track of your invoices better. If ever you will have an inventory, the invoice number will help you to make it easier. If ever a problem will happen, the invoice number will also help you track your invoices.

Purchase Date

You should include the purchase date in the invoice. You should put when you have given your products to the buyer or when you have rendered your services to him or her. This is to specially denote that the buyer has received the product or service.

Seller Data

The invoice will not be complete if you will not put the seller’s data. You must include the seller’s name. Add also the contact information. You should put the address, email address, and contact number. This is to ensure that if the buyer will want to contact the seller, he or she will have the means to do it.

Buyer Data

After you have included the seller’s data, it is time for you to include the buyer’s data. Like the seller, you must put the buyer’s name in the invoice. If the buyer is a company, put the name of the company. Then, add the address, email address, and contact number.

Product Description

Of course, you should tell the products or services that have been received by the clients. Describe the products or services that have been purchased. List the items if there is a need for it. Do not forget to include everything that the buyer has bought from you.

Cost Per Unit

After listing all the items that the client has purchased from you, you should put the prices opposite them. Put the cost per unit so that you can give a clear breakdown of the items purchased. Be careful and accurate in putting the costs. Be sure that it is the amount that the buyer is expecting to pay. You must avoid any dispute at all costs because it is how you can keep your clients.

Invoice Terms

You have to mention some terms and conditions in the invoice. The client has to know all the terms that you have to make the invoice successful. Stating the terms will make the buyer follow what is necessary to complete the deal with you in the right ways. Both of you can have the right expectations.

Tax Information

Tax rates are included in the invoice. You must put how much tax the client should pay. You can put the percentage and put the amount opposite it.

Total Payment

Then, you should be clear with the total amount that is due to the buyer. Calculate all the costs and get the total amount and write it accurately in the invoice. This is the amount that you will be expecting to get from the buyer.

Invoice Notes

At the end of the invoice, you can allot a place where you can put personalized notes. This is the place where you can leave a special message to the clients. Maybe you can thank them for ordering from you. Or you can write a professional note reminding them of your next best offer. You can start to build a good relationship with your clients by using customer notes on invoices that can bring them a smile.

Uses of Customer Invoice

Whether you are about to make a professional contractor invoice or a customizable invoice, you should first know its use. This will help you to create a better invoice. The following are the functions of a customer invoice, so if you are curious, come and read them:

Keeping of Records: Creating invoices is the best way of how you can keep files of your sold items. Through invoices, you can keep a record of everything. If you will find yourself needing it for some matter, it will be easy for you to find what you need. You can keep a good record of your sales. All the information will be maintained like when you have the sale, who had bought from you, and all the items that have been sold. You can have a good observation of your sales through the invoice.Tracking of Payments: A customer invoice is a great tool that you can use in accounting. With it, you can track all the payments that have been made in your business. It will be easier for you to compute them all. The prices are all visible within the invoices and all you have to do is to gather all the invoices in one single file, and it will be easy for you to assess everything. You can monitor the progress of your business through the customer invoice.Filing Tax Made Easy: Because you are maintaining a record of your sales through the customer invoices, you can use it for tax purposes. It is easier for you to file your taxes because you have a complete record of all your income through them. Your income can be easily calculated from all your sales using the invoices. The documents will be proof of what you have. You can learn that invoices have one great use in tax filing.Legal Protection: By using a customer invoice, you can be at ease with legal protection. You know that you have the rights to claim the money or to not pay if you have not received the right products or services. You can have the invoice as proof if ever something unexpected happens and you will want to file a lawsuit. The invoice is a legal document that you can use in any court. Thus, you can protect your rights by using it.A Good Help in Business: You can find a couple of business analytics benefits through the use of a customer invoice. You can analyze the market trends. Through it, you can make the best marketing strategy that can help you to grow your business. It can also help you to make your brand and products popular. You can develop effective techniques by observing buying patterns.

Tips on Customer Invoice

The best way to invoice customers is to send the invoice early. You should use customer invoicing software or customer billing software to ease your work. These are some of the tips that you can apply in a customer invoice. Continue reading and learn more tips that you can use in your invoice:

Flexible Payment Method: To make everything more convenient, you must provide the best payment methods to your customers. Give them the flexibility to choose among payment methods that you can offer. Others do not want to buy if the payment method will not be convenient for them, so you have to greatly consider this. Make the best payment methods available to pay for the invoices.Negotiate Payment Terms: Do not be afraid to talk with the customers about your payment terms. This will clear everything between the two of you. You should talk about fees and the due date of payment. You should tell them your rules of collecting payment. Ask the buyer upfront about all the things that you require. The buyer should know what to do.Use Automation: If you will use mail in sending your invoices, you can have more expenses. It will also take some time before your invoice will reach the clients. You can automate your invoices to give you convenience. You can use accounting software like QuickBooks. You can even use any design invoice in QuickBooks. You can expedite the process and the invoice will be more accurate.Stick on a Payment Schedule: To build a better relationship with clients, you must make a fixed payment schedule so that they will have ease in paying you. You can agree on a particular date in a month when the clients will pay. Or you can agree on several days when the invoice will be due. If you have agreed that the buyer will pay you after 15 days, then,  you should wait until that day, and you do not have to remind the clients to pay you.

How to Create a Customer Invoice

Are you searching for a customer invoice template or a customer invoice example? Do you badly need them because you are going to create a customer invoice? We have some steps that you can follow in making a customer invoice. Read and consider the following:

  • Step 1: Make it Professional

    You have to know that your customer invoice should be professional. It should look professional. To start with, you can search on the internet to know what a professional invoice looks like. Then, use a word processor or Excel in creating an invoice. You can use templates so that everything will be easier for you. Just be sure that you can create an invoice that is professional enough when seen by others.

  • Step 2: Personalize the Invoice

    After you have opened an Excel file or have chosen a template, you can start creating the invoice. Mark the document as ‘Invoice’. You must put this word. Then, choose a unique identification number for the invoice. This will be the invoice number that will make it unique from all your invoices. You can use a series of numbers or letters with numbers at the end, having the initials of the clients.

  • Step 3: Add the Buyer and Seller Information

    Then, at the top or bottom of the page, put the name of the seller and the buyer, whether the name is of a person or a company. Include the contact information opposite their names. You should put the address, email address, and contact number. The buyer and the seller should know how to reach each other, so this information is vital.

  • Step 4: Add the Products and Price

    Then, the most important details in the invoice should be placed. Put the description of the products or services that have been purchased by the buyer. Be clear in stating the items that you will require payment. You may not be paid in cash, but through the invoice, you will get the money that the buyer owes you. So, be clear in including the price of the items that have been delivered.

  • Step 5: Mention Payment Terms

    The invoice should have payment terms. You can quote them in the last section of the invoice. The terms will dictate to the buyer what to do if ever he or she will have any problem. These also state your expectations. Give a payment method that the buyer can use. At the last part of the invoice, leave a space where you can put some notes to the buyer. You can thank the buyer or tell her or him to buy again.


When Should I Send the Customer Invoice?

A customer invoice is usually sent after the goods have been delivered. It can be sent through email or through using electronic payment platforms. Be sure to send your invoice just after the buyer has received your products.

Is Invoice Better Than Receipt?

Yes, an invoice is better than a receipt. you can attract more customers by using an invoice. It is because they can get your products first. Besides, you can better track your sales by using invoices. And you will not have stacks of receipts that you should assess.

We cannot do anything about it. Nowadays, the invoice is widely used and we cannot go back to the old ways of using a receipt. So, you have to know how you can expedite your payments using invoices. You have to get used to it. Do you need a template for a customer invoice? This post has 15+ SAMPLE Customer Invoice in PDF. You can pick any of them that you will want to use. Download now!