You’re running a small business online or offline, and you’re a bit confused about to how to start billing your customers and users; then learning how to make a simple invoice or receipt can help you get paid for your work.
- The difference between an invoice and a receipt
- Information should be included when creating an invoice or a receipt
- Invoice and receipt templates
What’s the difference between an invoice and a receipt?
An invoice, according to Investopedia, ”is a time-stamped commercial document that itemizes and records a transaction between a buyer and a seller.”
A receipt might feel the same as an invoice but is ”a written acknowledgment that something of value has been transferred from one party to another.”
So as you can see, they are both related to the payment process but they are used for different purposes. An invoice is a request for payment whereas a receipt is proof of payment.
What to include when creating a simple receipt and invoice?
How to make a simple invoice?
You can easily create a simple invoice by following the below steps:
- Include contact information of your business’ and customer’s: name, address, website (if have) telephone number, and email address
- Build a simple invoice numbering system: to make it easier to track your invoices, every invoice sent should have its own number. You can start by just numbering them sequentially like #0001, #0002 for example.
- Add invoice date: the invoice date has essential information regarding payment. It represents the date on which the goods has been billed and the transaction officially recorded. In addition, it helps in dictating the due date of the bill (normally within 30 days after the invoice date).
- List out your services provided to customers: brief description of the services or products, quantity or time spent, paying rate, subtotal of each service, etc.
- Add payment methods acceptable: it can be cash, credit card, bank transfer, etc.
- Include payment due date and amount due: make sure to make these information standing out from other information.
How to make a simple receipt?
To create a simple receipt, you can include the following information:
- Contact information of your business: name, address, telephone number, and if possible attach logo, website, fan-page as well.
- List of products or services purchased
- Price per unit, subtotal of each item, tax, and a total price
Receipts might vary according what type of business you’re running but the above is the basic information should be included in a receipt.
You can find a receipt template that suits your business on editorAC, too.
editorAC – ACworks