How to Write an Invoice For Small Business (+ Free Template)

Landing your first order is a major milestone for any small or growing business. It’s an exciting step in your journey as a business owner and a reminder that every detail plays a role in building a successful venture. Plus, invoices mean you get paid.

From writing a business plan to creating professional, accurate invoices, managing your finances is one of the most important aspects of running your business, and crafting clear, well-structured invoices is key to staying on track.

This article simplifies the process of writing clear, professional invoices that leave a great impression and ensure timely payments. It outlines essential components, shares best practices, and includes a free invoice template to save time and effort. Perfect for creating invoices that reflect professionalism and enhance client relationships. Let’s get started.

What we’ll cover:

• What’s an invoice, and why does it matter?
• Step-by-step guide on how to write an invoice
• How to avoid common invoicing mistakes
• Free invoice template for you
• How Pro Suite can help automate your invoices

What’s an invoice, and why does it matter?

An invoice is a formal document from a seller to a buyer that lists the products or services provided and the amount due. It includes important information about the sale for your business, and your taxes. Invoices are crucial for tracking sales, managing cash flow, and ensuring timely payments. They keep financial transactions transparent and professional, making them essential for any business owner or entrepreneur.

A business invoice lays out the services you provided, their costs, and when the payment is due. But it’s more than just a piece of paperwork. It’s what keeps your cash flow on track and your business running smoothly. Without invoices, it’d be tough to stay organized or keep up with who’s paid you and who hasn’t.

Step-by-step guide on how to write an invoice

A well-designed invoice helps you get paid on time, keeps your business professional, and reflects your brand. Here’s a clear, step-by-step guide to creating a professional invoice:

Step 1: Start with your business info

Start with your business name at the top of the invoice, followed by your address, phone number, and email. If you’re a freelancer, you can use your full name. Including your logo, if you have one, will add a nice professional touch. This makes it clear to your client who the invoice is from and provides all the necessary contact information in one place, so they know how to reach you if needed. It’s a simple but effective way to ensure your invoice looks organized and professional.

Step 2: Add your client’s details

Add your client’s details right below your business information. This should include their full name, company name (if applicable), address, and contact details like phone number and email address. Ensure you’re listing the correct person or department that should receive the invoice. Double-check everything to avoid any confusion or delays in payment. Accurate client information ensures the invoice goes to the right place and helps maintain a smooth billing process.

Step 3: Give the invoice a unique number

Each invoice should have a unique number; this helps keep things organized. It makes tracking payments and finding invoices later much easier. You can keep it simple with numbers like “001, 002, 003” or get a little more specific by adding the date, such as “2023-01-01-001.” 

Whichever system you choose, just make sure to stick with it so everything stays clear and you avoid any mix-ups down the line. This not only helps you stay on top of things but also makes it easier to reference specific invoices when needed, like during tax time or follow-ups.

Step 4: Add invoice date, due date, and payment terms

It’s important to make your payment terms clear on the invoice. Start by including a due date, such as 30 days from the invoice date, and specify the payment methods you accept (e.g., PayPal, credit card). If you charge late fees, be sure to mention them. To avoid any confusion, it’s a good idea to discuss your payment terms with clients upfront. Also, ensure your payment details, like bank info, are easy to find, so there are no delays. If your payment methods change later, just update the details as needed.

Step 5: List service and product charges

Be specific about what you’re billing. If you’re charging for a product, include details like the name, quantity, and price. For services, describe what you did, how long it took, and any tasks or deliverables involved. This clarity helps your client understand exactly what they’re paying for, avoiding any misunderstandings. The more transparent you are, the easier it will be for both of you to stay on the same page.

Step 6: Add up the total amount due

Sum up everything — products or services costs, tax, discounts, and any extra fees. Ensure the total amount due is easy to spot at the bottom. For example, if your subtotal is $500, and there’s a 10% tax, your grand total would be $550. Keep it clear and simple.

Step 7: Add a personal touch

A simple “Thank you for your business!” or “Looking forward to working with you again!” can go a long way. It shows that you appreciate their support and helps build a positive, lasting relationship for future projects.

Common invoicing mistakes to avoid

Even the most experienced business owners can make invoicing mistakes. To help you out, here are a few common pitfalls to avoid:

• Missing information: Double-check that all the details (like client name, pricing, and payment terms) are filled out. Incomplete invoices can confuse clients and delay payments.
• Not being clear enough: Be specific about payment terms and amounts. If something’s unclear, clients might not know what they owe or when they need to pay.
• Being unprofessional: Sloppy formatting or spelling mistakes can make your business look unprofessional. Keep your invoice clean, consistent, and free of errors.

Free invoice template for you

To make invoicing easier, we’ve put together a free invoice template that you can download and use. Here’s how it works:

1. Create your template: Build out your invoice in a blank document or template.
2. Fill in the details: Add your business information, your client’s information, and transaction details.
3. Save as a PDF: Once your invoice is ready, save it as a PDF to maintain the formatting or offer e-signature options.

This template is easy to use and can be tailored to fit your needs. It’s a perfect starting point for streamlining your invoicing process. Here’s a sample: 

How Pro Suite can help automate your invoices

Writing invoices manually can be a hassle, but with Pro Suite, invoicing can be automated and simplified. Here’s how it works:

• Centralize your data: All your client info and transactions are in one place, making it easy to generate invoices on the fly.
• Connect helpful apps: You can connect Pro Suite with apps like Invoice Ninja, Zuora, or QuickBooks. These apps can handle invoicing and billing, so you don’t have to worry about it.
• Create custom solutions: You can create custom solutions using Salesforce Flow. This tool allows you to build tailored invoicing systems that meet your business’s unique needs.
• Set up automations: You can set up automatic processes that create invoices when certain things happen. With Process Builder, you can set up automatic processes that trigger invoice generation when specific events occur, like completing a sale or renewing a contract. This ensures all necessary data is captured and ready for invoicing without manual input.
• Payment reminders: You can send automatic payment reminders to clients, reducing the chances of missed payments.
• Track payments: You can track when clients have paid in analytics, so you can keep your finances organized without stress.

And if you’re ready to scale and want advanced AI automation for your next invoice, you can activate Agentforce with Salesforce Foundations — where there is invoicing for every level of your business journey.

Perfect your invoicing process

Invoicing is an important part of running your business. With these simple steps, you’ll be able to create professional invoices that help you get paid on time. Remember to avoid common mistakes, be clear with your payment terms, and personalize your invoices when possible.

Ready to take your invoicing to the next level? Start automating your invoicing with Pro Suite today!