There are many ways to make an invoice, each with its pros and cons. Generally, invoice software is better than invoice templates. Let’s take a look at why.
Invoices are used to ask for payment from the individuals or business that you’ve sold goods or services to. There are many ways to make an invoice, but there are some rules for what an invoice should contain.
The invoice needs information about who the seller and the buyer is. It should have an invoice date, a due date and an invoice number. It also needs to describe what was sold, including the quantity and prices. Finally, it needs information about how to pay, often called payment terms.
Let’s look at how you can make an invoice.👇
How an invoice template works
An invoice template is a document that’s set up like an invoice. It has headers to show where all the different elements should go, and maybe even some sample text, which you can easily replace with your own information.
You can set up your own invoice template or download a template for Word, Excel, Google Sheets, Google Docs, PDF and so on.
Then it’s just a case of filling out the info, making sure to update the invoice number, invoice date, and due date. Then you export as PDF or print and email to your customer.
You have to make sure that invoice templates are legal in the country you’re operating in. Some countries require you to use either invoice software or invoice pads that are prenumbered.
Invoice templates are usually free, but there are free invoice softwares too.
How invoice software works
Invoice software is made to create professional invoices.
You fill out the invoice on your laptop or using the phone app. The invoice number, invoice date, and due date is automatically added to the invoice. You can add a new client or select from a previously invoiced client, and the same goes for products and services.
A PDF is generated for you, which you can send directly from the invoice software, or download to either send via email or send in the mail.
Why is invoice software better than invoice templates?
As you can see, both alternatives work well to create invoices. However, there are some key differences that makes invoice software a better solution if you’re going to invoice regularly:
- It’s quicker to create an invoice. With invoice software most of the information is already filled out, such as your information, the invoice number, invoice date, due date, and the payment method. You can add clients, products and services with the click of a button. And that’s it, really. Job done.
- It’s easier to follow up on your invoices. If you use invoice templates, you have to make sure to store the files somewhere safe. You also have to manually go through your stored invoices to see if any of them are overdue. This means it’s easy for an invoice to slip through the cracks, and if you don’t get paid for your sales that equals less money that you can reinvest in your business, or simply take home.
- Your invoices look more professional. If you use an invoice software it’ll probably look more professional than an invoice template. You can spend time creating a nice-looking layout in Word or Excel, but unless you’re very careful, you’ll likely send an invoice with the wrong due date or invoice number or with some missing information at some point, and that’s not a very professional look. Invoice software deals with the layouts and the little details for you.
What are you waiting for?
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