Giving an invoice is essential to ensure that you will be getting your payment from your client. Learn the key elements in creating an invoice to avoid confusion and misunderstanding between you and your clients.

If you are doing some kind of work for a client, then in due course, you will ask your client to pay you. This is where invoices are necessary to ensure your payment from your clients. Know the essential elements in creating an invoice by reading further.

Key Elements of an Invoice

There are some key elements that you need to include in creating an invoice. These elements must be present so that there will be no confusion on the client’s side. Invoices should be straight to the point and there should be no room for other kind of interpretation.

‘INVOICE’

When you hand a document to your client, they should immediately know what it is that they are looking at. You can put the word ‘INVOICE’ at the top portion of the document written in large fonts, so that your client cannot overlook it.

Date and Number

The next key element in creating an invoice is the date and number. The date will inform your client when the invoice was sent to them. The number is the unique invoice number for record referencing and client communication.

The Sender

Include in the invoice the details of the sender like name or company’s name, address, phone number, fax number and email address. This is important because if there are some issues from the client’s side, then they know where to contact you easily.

The Recipient

While creating an invoice, include the name and address of the client being billed whether a person or a company. Including some contact information like phone number and email is also a good thing to do.

Job Description

Include a brief summary of the job done as you create an invoice. This should be a concise statement describing the task covered by the line items of the invoice. An example is ‘Web site design and development for (company’s name).’

Line Items

Line Items are the meat and potatoes in creating an invoice. You must enumerate each item that you are billing your client for separately. A standard invoice would have columns for quantity, description, unit price and line total for each item.

Line Total =  (Unit Price * Quantity)

Totals

Finally, there should be a grand total at the bottom of the invoice, which is the sum of all the line totals for each item in the list. If there is a tax included in the grand total, then there should be a separate box designating the amount of the tax you charge your client with.

Additional Reading on Creating An Invoice