16/04/2021
How to create an invoice: step-by-step
1. Make your invoice look professional
The first step is to put your invoice together. You can do this yourself using a word processor or Excel, but you could also use one of our free invoice templates above.
There may even be sample templates on your word processor, depending on the program you’re using.
You should use professional fonts and styling that match your brand, then add your logo and colours if possible.
2. Clearly mark your invoice
Make sure your customers know it’s an invoice they’re receiving. Just adding the word invoice at the top of your document might make it more likely you’ll be paid on time, as it makes your request for payment stand out from other documents your client might get.
The guidelines on the gov.uk website also state “you must clearly display the word ‘invoice’ on the document.”
Your invoice needs to have a unique identification number. This is for your records, as you should have a reference for all the invoices you’ve raised to make sure you don’t create duplicates.
You can use a sequence of numbers that gradually increases. You could also use letters in front of a number, which might indicate a specific client.
3. Add company name and information
This means both your company’s information and the details of the company you’re invoicing:
your company’s name, address, and contact details
your customer’s company name and address, including a contact’s name so it reaches the right person
your registered office address and company registration number if you’re a limited company, along with the formal registered name
Keep in mind that if you’re a limited company and you choose to add the names of your directors on the invoice, you need to add the names of all directors.
4. Write a description of the goods or services you’re charging for
These descriptions don’t need to be long, but they should be detailed enough for your customers to know what it is they’re paying for.
After all, if they have no idea what they’re being charged for, they’re more likely to query the invoice – leading to a delay in payment.
Once you’ve added a clear description of each item, you should add in the quantity of each and the price.
5. Don’t forget the dates
You need to add some dates to your invoice. These are:
the date you provided your goods or service (the supply date)
the date you create the invoice
You could add the supply date to the description of your goods or service, and add the invoice date at the top along with your name, address, and contact details.
6. Add up the money owed
As well as including the costs of individual goods or services, you need to put the total amount owed as well.
Plus, if you’ve agreed a discount with your customer, note this down on the invoice and subtract it from the total cost.
If applicable, include the VAT amount too.
7. Mention payment terms
You should have agreed payment terms with the customer beforehand, but it’s a good idea to note the terms of payment on the invoice as well.
So if you expect to be paid within a certain number of days, remind the customer by including it on the invoice.
More importantly, note down how exactly your customer should make the payment. It’s likely you’ll want the customer to make the payment directly to a bank account. If that’s the case, be sure to add your bank details.