A bill of lading, also known as an invoice, is a document containing details of the services provided as well as a request for payment, which is submitted to the person who made the purchase. For example, if you are a gardener and have added plants to a client's home page, include details of your services in the invoice to obtain payment.
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Part 1 of 3: Choosing a Format
Step 1. Create a professional invoice
If you write invoices frequently, it's a good idea to create an invoice template that you can modify each time you send a new invoice to a customer. This template is especially useful for contractors or others who provide services on an ongoing basis. You can create invoice templates using your favorite text-processing program or search the internet for them.
- An invoice usually includes a title with your name or your business, address and phone number, as well as a company logo, along with details of the services provided, the amount to be paid, and payment instructions.
- Invoices are usually created electronically, numbered, and saved to a computer. That way, you always have a copy of your invoice and don't have to worry about losing your billing paper. However, make sure that you always back up your invoice files using an online file storage service, such as Google Drive or Dropbox. That way, if your computer's hard drive fails, you'll still have a copy of your invoices.
- Choose a numbering system that makes it easy for you to organize your documents. One option is to use the creation date. So, "FTR311216" is an invoice created on December 31, 2016. If you create more than one invoice in a day, enter the vendor's initials.
Step 2. Select the invoice book
Invoice books can be purchased at bookstores or stationary stores. This book has included spaces to list the services provided and various payment information. Every time you write a payment bill, you just need to fill in the blank space provided.
- Invoice books are useful for people who write invoices for the goods they sell. For example, if you sell homemade cakes, it might be easier to write a bill of payment instead of creating an invoice on your computer every time you make a sale.
- Choose an invoice book that has a layer of ditto paper behind each blank invoice so that you and your customer can each get a copy.
- However, you still need a secure storage area. Be sure to keep a copy of the invoice in an anti-fire safe.
Step 3. Use an online payment system
PayPal or Square allow you to send invoices. However, the service is chargeable (2.9% + US$30 cents per invoice as of January 2017), but the convenience of paying electronically makes this method more reliable.
- From within your PayPal account, select the "Send & Request" menu option at the top. Then, select "Create and Manage Invoices" (create and manage invoices). Finally, click the "Create" button to create a new bill.
- You will need to know the client's email address to fill in the "Bill To:" section of the invoice. PayPal or Square will bill the account with that email address.
Step 4. Get a custom invoice app
Invoicing apps like Invoice2go let you send and track bills from your phone, and set automatic payment reminders. Customers can pay online using a credit or debit card.
Step 5. Create invoices with accounting software
If you use accounting software to manage your business, an invoicing system should be included. For example, QuickBooks has a user-friendly “Invoice” button on the dashboard that guides you through the process. Your clients won't have instant payment options, but you can monitor billing status along with other business records.
Part 2 of 3: Including Basic Information
Step 1. Include company information
Whether you're billing on a computer or using an invoice book, write the company name at the top. Include the following information just below your company name:
- Company full address
- Company phone number
- Email address or any contact information
Step 2. Write down the date
You and the client need to know the date of the related invoice. This is because the payment due date is usually based on the invoice creation date.
Step 3. Invoice number, if required
You will need invoice numbers sequentially according to the number of transactions made with the client. For example, if you sold a cake to the same client in 3 different events, the invoice for the third sale would be numbered #3.
- If you are using a stationary store-bought invoice slip, the invoice should already be numbered.
- If you use accounting software or PayPal, the bill will also be numbered automatically.
Step 4. Write down the client information
Include the name of the customer or client or company. If you provide contractor services to clients, you should also include the company's address and telephone number.
Part 3 of 3: Writing Specific Things
Step 1. Write a description of the services provided
Include any work, services or products the client provides. If you provide more than one service, list each one on a list. Include the following information regarding the service or product in the related list:
- Services or products provided. For example, “1 birthday cake with Thomas decorations.”
- Service delivery date
- Service fee
- After each product or service has been listed, calculate the total and include the final amount billed.
Step 2. Specify the specific payment terms
If you want the bill to be paid before a certain date, include that information. Enter details regarding the type of payment accepted, whether cash, check, or credit card.
Also calculate the tax that will be added to the cost. Look for the applicable tax rates in your country so you can determine the amount billed accurately
Step 3. Provide additional information
At the bottom of the invoice, write a description of the return policy. You can also take this opportunity to thank the client and list other products or services that you also offer.
