It has always been a standard procedure that when you purchase something from a store or a supermarket, you get an invoice. There are different types of invoices. There is plumbing invoice, medical invoice, tax invoice, etc.
Writing an invoice ranges from basic to complex ones. You can create a plumbing invoice simple invoice or a commercial export invoice. All these examples have each and every purpose according to how it is used or which field in business it applies. And there are various formats too on how they are written.
When you create an invoice, you always have to consider the business side of it. It is not just any document that you write when you were in high school or college. There are certain standards that you need to follow just like when you create a commercial invoice.
To create one, all you need to remember are the important details that should be included in it. They are your business name, address, and contact details. Also, the items sold or purchased during the transaction. And lastly, the buyer’s information, contact details, and total amount due or paid.
As we have mentioned during the first part of this discourse, there are a few ways on how you can create an invoice. From printable invoice to complicated ones, there are different formats you can use create an invoice. One of it is through Microsoft Excel.
To create an invoice in Excel, first you need to open a sheet and name it for proper identification of your work.
Second, create columns and rows depending on how you want to format it.
Then, adjust the cells or boxes accordingly.
Finally, supply each cell with the information that is required on your invoice.
With the emergence of technology and with the evolution of man’s capacity to think creatively, there are could be many ways on how we can create an invoice. However, you need to remember the basic and standard procedures on how an invoice is made. Here are the steps to create your own invoice.
There could probably be conflicting ideas about what really is the purpose of an invoice. However, we can look at it from a business invoice perspective and a customer perspective as well.
A professional invoice is important for business inventory. It allows finance manager to identify which goods were sold at a period of time and how much money was involved in it. With the help of the invoice, a company could easily identify their profit.
For buyers, invoices are important to document their purchases and keep track of their expenses. Keeping invoices help you better control your budget.
A purchase order is a list of goods from a buyer.
An invoice works in contrast with a purchase order. It is a document from a seller to a buyer indicating the products and services with their corresponding prices. A concrete example of its contrasting effect is a purchase invoice. It is a document from a buyer to a seller indicating what has been bought and how much was paid.
Whether you are a business owner or a consumer, you need to know the importance of an invoice and how it works. Think of it as a money that you use in exchange of goods.
The only difference is it has a legal effect.
Let us think of practical scenarios where an invoice works to the advantage of multiple parties. Say you are tasked by your employer to go on a business travel invoice, all expense paid.
However, all of your expenses need to be accounted and you are asked to secure receipts or invoices for all of your purchases. You need to secure a travel invoice, photography invoice, hotel invoice, etc. You might think it is absurd to keep all these but in reality, it is for you and your company’s benefit.
Why?
Because a company to continually grow, all expenses have to be documented to compensate with the income. There should be balance between them.
An invoice form works like a footprint for all of your business transactions. It makes sure that everything is accounted for. Because at the end of the day, when all of your money is gone and you wonder where did it go, you can always look at your invoices to remind you of what you have been spending the whole time.
