In this article, we will discuss how to make invoices easily. Invoice is a mandatory document that is owned by every taxable business entity. Usually used as proof of a purchase transaction that contains the item and amount of payment to be paid.
All companies, large, medium, and small always use this document. Its function is as evidence of a transaction. It contains the item name of the product/service and the amount to be paid.
According to the Big Indonesian Dictionary (KBBI), an invoice is a list of consignments that are accompanied by a description of the name, amount, price to be paid.
Even though invoices are very commonly used, there are still many people who are confused about making them. An essential thing in an invoice is that there must be all the information needed when the other party makes a payment. There is no standard format for creating invoices; the main thing is that the data is complete and easy to understand.
10 important things that must be included in an invoice, namely:
- The logo and company name of the selling company
- The seller’s company address and email and phone number
- Name and description of the buying company
- The date the transaction occurred
- The item / type of goods or services purchased
- Prices for each type of goods / services
- The total price of each good / service
- Taxes to pay
- The final price to be paid or collected after tax
- Signature and clear name of the selling company
Here’s an example of an invoice you can copy:
Next will explain the difference between invoice and note:
- In general, invoices are used for taxable business entities, while notes are not. Invoices look more professional than notes.
- Invoices are generated automatically and generally come with a digital template. Notes are written manually.
- The price of goods on the invoice is usually taxed, while the price of the goods on the note is not taxed.
- The printed invoice data will be entered into the computer system (ERP). Notes do not have a track record in the system because they are generated manually.
You may ask, how many duplicate invoices should it be? The answer is according to your needs. Likewise for notes. Can be 2, 3, or even 4.
Also read: 6 Steps to Make a Sample Payment Receipt
How to get buyers to pay immediately
The next problem after the invoice is sent the payment from the buyer. You can follow up by phone or letter if the invoice is due for payment. If the buyer is slow in making payments, try to come to their office to find the best way.
Here are ways you can do so that buyers can make payments quickly:
Give Rewards for Paying On Time.
This is one way for buyers to pay on time. When there is a promise of a reward, be it a gift or point or a discount for the next purchase, usually the buyer will be encouraged to make payments on time.
Provide Alternative Ways to Pay.
If the buyer does not pay on time, ask them if there is a problem with the payment method? It could be that they want payment in other ways. Suppose you want payment by wire transfer, but they prefer to pay in cash.
Stay Friendly With Late-Paid Buyers.
You have to keep on good terms. Harsh and unfriendly billing methods will make buyers buy time or even reckless not to pay. So keep courtesy and friendliness to problem buyers.
Send the invoice in advance.
You should send the invoice early so that the buyer can prepare the funds. This is because many companies have long bureaucracy. So the first collection will help with on-time payments.
Thus the article about 10 POINTS THAT MUST BE IN INVOICE. Hopefully, it will make it easier for you to create invoices to buyers, both B to B and B to C buyers. Whatever your business is, whether it is selling boba beverage franchises, geprek chicken food franchises, selling beauty products to stores, invoices must always be there.
Currently, there are many simple and affordable applications to help you create invoices and help with a collection so that your cash flow is well maintained. With IREAP Invoice, you can create and monitor invoices in the palm of your hand via an Android device.
Djoko Kurniawan | Business Consultant