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A Guide to Choosing the Right Invoicing Template for Your Business

Finding the right invoicing template for your business can save your business valuable time and resources on a daily basis. Considering that invoicing is such an important aspect of any business, it is best to do it right. With invoicing templates available are all over the internet, whether you are using an excel sheet invoicing method, or have just begun to use an invoicing software, your work will become easy. However, the multitude of template options can leave you a little confused. The small business invoice template remains pretty standard but it can be dynamic.

So, here are a few basic things to keep in mind while choosing the right invoicing template for your business.

Keep the Branding Right
Regardless of what your business focuses on, the correct branding on invoices is the key to boosting your client base and reputation. Small business invoicing templates don’t have to be bland or irrelevant. From the perspective of the client, a shabby template doesn’t make a good impression about your business too.

This is why an invoice template should match your business and the industry standards. The invoice should follow your color scheme and have your logo at the top (and below the signature if required). If you don’t have a logo, your name and contact details should be mentioned to brand your invoice. The idea is to make your invoices recognizable.

Also Read: Free Invoice Templates

Pick the Right Invoicing Software
If you are using invoicing software, make sure it is curated for your business. For example, if you are running a legal firm, all invoicing software solutions might not cater to your specific needs. For this, you might want invoicing software that lets you build many templates at once, and notifies you and the client when the retainer is about to run out.

Similarly, for any other business, pick the invoicing software that will help you build invoices, and not make the process more difficult for you. Post purchasing any invoicing software, if you are spending more time on creating an invoice, this is a red flag. You can explore our invoicing software CloudBooks created especially those users who like to save time with easy invoicing.

Some Room for Customization
Even the best and most optimized invoice template might sometimes not do the job for you. Your client might request some additional service or add another column for their state tax collection. Whatever it may be, the structure of the invoicing template should not be restrictive.

This applies not just to the structure, but also other things like color scheme, lists etc. A restrictive invoicing template design will cause more problems in the long run.

Also Read: 5 Common Questions About Online Invoice Software Answered

Classic is Always your Safe Bet
There are pretty good looking invoices out there, some of which you can use free of charge too. But, you need to ask if they are practical before zeroing in on one. If you think it will work for you, go ahead, but if you have the slightest of doubt, go with the standard, classic invoice. Just your basic, itemized list, contact information, tax details, payment information, and all the key things in a straightforward design is always a good way to approach invoicing templates.

Understand the Differences Between Bookkeeping and Accounting

Accounting and bookkeeping are not interchangeable terms, unlike what many businesses think. These are two essential steps in the process of financial management. Bookkeeping is about recording the data and accounting is about compiling the reports of the said data.

In simple terms, bookkeeping is literally about keeping the book up to date with transactions, incomings and outgoings, any exchange of money, and income and expenses. Accounting refers to the laying down of the accounts of the recorded income or finances. Meaning, it analyzes, summarizes and reports the data collected through bookkeeping.

This article aims to make the difference between bookkeeping and accounting clear through the following:

• All things Accounting
• All things Bookkeeping
• Can Accountants be Bookkeepers?

All things accounting
Accounting is best described as a practice of maintaining accounts, and assessing liabilities, assets, and performing regular audits on accounts. Accounting is done to keep a check on the financial health of an organization.

Accounting is a standardized practice and most of the work performed by an accountant is for accurate reporting to the Revenue and Customs department. An accountant’s duties are detailed here:

• Analyzing financial data and providing consultation to create a healthy cash flow and increase total assets or profits. They subsequently ensure timely payment and regulation of taxes.
• Managing the financial data and complying with standard accounting laws and rules to ensure that the data is stored, managed and updated accurately. An accountant will choose the correct recording practices or system.
• The accountant ensures that the company follows the updated government regulation on all financial fronts and follows the industry standards.

Also Read: 10 Tips for Small Businesses to Track Their Expenses

All things bookkeeping
Financial data can be a lot to handle. Plus, it needs to stand the test of time (in terms of recording), and it never stops.

So, bookkeeping is all about keeping an accurate record of the financial data for a business. Bookkeeping involves creating, updating, and formatting the system for recording new information. Bookkeepers engage in the following activities:

• They constantly verify expense records for policy compliance. These should be in compliance with the government guidelines and industry standard, which will be notified to the bookkeeper by the accountant.
• Bookkeepers create credit and debit accounts and categorize them based on the categories of transactions or expenses. Each account will also be linked to a mode of payment.
• They record the data for each transaction, and perform data entry on each of the incoming and outgoing payment, including the mode of payment (this includes cash and checks).
• Bookkeepers implement the accounting software for a single or double entry system of accounting (this will be selected or approved by the accountant).
• They manage all banking activities of an organization, like approving the addition of expenses, sending out salaries, processing monthly cuts, and managing funds.
• They maintain the balance in the liabilities and assets of an organization in the entry system.
• A bookkeeper also supervises the process of data entry or handles it. And, they flag any discrepancies too.

Also Read: CloudBooks for Accounting- Link

Are accountants and bookkeepers the same?
Accountants and bookkeepers work together to establish healthy financial practices in a business. But they don’t have the exact same profile on paper.

Both accountants and bookkeepers might possess the same college degree, but the work experience and specifics of education distinguish them. An accountant has to clear a standardized exam and obtain a formal certification to be termed as an “accountant”. This involves completing a set coursework along with attaining certain work experience.

The procedure to obtain the title of Certified Public Accountant (CPA) differs from state to state and country to country (so does the term). Both the eligibility and the coursework can vary.
Bookkeepers can obtain this certification too if they want, and they will then be eligible for the same work profile as an accountant, or can be identified as an accountant in the general sense.

Accountants, however, can perform the duties of a bookkeeper without any extra training since they are well versed in bookkeeping tips and tricks.

So, now that you are aware of the differences between bookkeeping and accounting, you can easily decide which process will be more suited to your business in particular.

Here’s How You Can Create And Manage Professional Looking Invoices

invoice creation is an integral part of running any business, be it big or small. And when done right, it can make a lasting impression on your client. Now, creating professional looking invoices doesn’t have to be hard, as long as you take care of a few things and inculcate them as best practices for invoice generation. You will be able to create better looking invoices that help you get paid quicker.

In fact, it is super easy to generate top notch invoices using online invoice software. They are easy to use, intuitive and allow you two create professional looking invoices in a jiffy.

There are multiple different invoices that you can create depending on your business and the nature of the transaction. You can generate itemized invoices, bills for your service, invoices for monthly retainers etc. Regardless of the format you choose, the standard professional invoice template contains a few important things that you should make a note of:

Business Details
An invoice should be generated either on a company letterhead or contain important details about your business, starting with the name of the business, of course. Take a subsection of the top of the invoice to add the name of your business and details. Add your logo, and you can maintain a color scheme. This adds to your brand value, and establishes your credibility.

If your business requires you to show some form of certification, do add that right under the name. Any other such bylines that need to be added as per the law should be added right under the name.

Also Read: How to Create and Send Beautiful Invoices to Your Clients

Contact Information
While using any invoicing software online, in the top section of the template, right below the name, you should place your contact information. This can include either one or multiple channels of contact. You can also use a standard letter head or personalize the invoices you generate according to the client.

If you want to add a personal touch, you can add contact information of a particular sales person or an employee handling communication with a specific client.

Invoice Number
Every invoice contains an invoice number which is unique. Consider this compulsory.

Payment Agreement
An invoice is a request for payment for the services you provided. It should represent all aspects of payment. Hence, the payment terms or agreement must be clearly stated on the invoice.

Each business has different payment terms, and might even change payment terms for different invoices, depending on the service or the client. These terms generally indicate a due date for a one time service, and the payment cycle for periodic payments.

Also Read: How to Choose a Small Business Invoicing Solution: The Complete Guide

Buyer Details
Any professional invoice template needs to include this. After all, the invoice will be sent out to a client who will use it as a bill. Buyer details like name of the business, or person you are dealing with, and their contact information should be present on the invoice itself.

Product/Service Details
The purpose of creating and sending an invoice is to request money for a service or product. Of course, the star of the entire show is the services and their rates.
So, mention each service or product with a description, quantity (if applicable), rate, and amount. Make sure you include everything billable, including business expenses, if incurred by you. Every service should contain a brief description as well.

Sum up the amounts for all the services rendered and mention it separately as the total sum (or taxable amount).

Applicable Tax
The tax amount on each service depends on the nature of the service and the jurisdiction your business comes under. Make sure to crosscheck the relevant information on services with the tax laws. You can use free invoice software to determine the applicable tax and policy regulations for your business.

Add the tax below the sum total, mentioning every little detail like the type of tax and the percentage, and other details. Then, add the tax to the sum total, and mention it at the end. This is the final amount you are requesting.

Also Read: Billing And Invoice Software –Link

Discounts
If you are offering discounts, be sure to include that in the amount.

Due Date/Overdue Fine
Be sure to add a due date for the payment and the fine (if applicable) in case of any delay in the payment.

To conclude, as long as you keep the above aspects in mind and use reliable invoicing software online, creating accurate invoices that look professional will be a breeze.