You’ve established your company and sold items or services to clients and customers, which requires you to give them an invoice. But how do you go about creating an invoice? And do you know how to send an invoice through email? Even if you’ve been in the company for a while, you might be wondering if there’s anything else you should include in your invoices.
This article will explain how to create an invoice, how to send an invoice through email, tips on how to send an invoice through email, and what a professional invoice should include.
What Exactly Is an Invoice?
An invoice is a bill that a business sends to a client or customer to request payment for goods or services. Invoices typically feature a description of the stuff you’re charging for as well as payment terms, among other things. Business invoicing is an important element of bookkeeping since firms must keep track of sales and income for tax and accounting purposes. Invoices are distinct from receipts (which recognize payment) and purchase orders (which indicate a desire to purchase goods and services).
How to Create an Invoice: Step-by-Step Instructions
According to Gov.UK, specific information must be included in your invoices; follow the instructions below to get your invoices up and running in no time.
#1. Create a Professional-Looking Invoice
The first step is to create your invoice. You can do this yourself with a word processor or Excel, or you can use one of the free invoice templates listed above. Depending on the program you’re using, there may even be sample templates in your word processor. If feasible, choose professional typefaces and styling that complement your brand, then add your logo and colors.
#2. Make Sure Your Invoice Is Clearly labeled
Make it clear to your customers that they are receiving an invoice. Simply including the phrase invoice at the beginning of your document may increase the likelihood that you will get paid on time, as it distinguishes your request for payment from other documents your customer may receive.
Your invoice must have a distinct identifying number. This is for your records, as you should have a reference for any invoices you’ve created to avoid creating duplicates. You can use a number sequence that progressively grows. You might also use letters before a number to denote a specific client.
#3. Include the Company Name and Contact Details
This includes both your firm’s information and the information of the company you’re billing:
Name, address, and contact information for your company, your customer’s firm name and address, as well as a contact’s name, so that it reaches the appropriate person.
If you’re a limited company, include your registered office address and company registration number, as well as your official registered name.
Remember that if you are a limited business and prefer to include the names of your directors on the invoice, you must include the names of all directors.
#4. Write a Description of the Items or Services for Which You’re Pricing
These descriptions don’t have to be long, but they should be clear enough for your customers to understand what they’re paying for. After all, if consumers don’t know what they’re being charged for, they’re more likely to question the invoice, resulting in a payment delay. After you’ve given each item a detailed description, you should include the quantity and pricing.
#5. Keep the Dates in Mind
You must include some dates on your invoice. They are as follows: the date you delivered your goods or rendered your service (the supply date) the date you created the invoice. You might include the supply date in the description of your product or service, as well as your name, address, and contact information at the top.
#6. Total the Amount Owed
You must include the total amount owed in addition to the costs of individual goods or services. In addition, if you’ve agreed on a discount with your customer, make a note of it on the invoice and deduct it from the overall cost. Include the VAT amount, if applicable.
#7. Mention Payment Conditions
You should have agreed on payment terms with the customer ahead of time, but it’s a good idea to include them on the invoice as well. So, if you anticipate being paid within a specific number of days, include a reminder on the invoice.
More importantly, make a note of how your consumer should make the payment. You’ll almost certainly want the customer to make the payment directly to a bank account. If this is the case, make sure you include your banking information.
How To Send An Invoice
When it comes to getting an invoice into the hands of your customer, you have options. Let us examine the advantages and disadvantages of each
#1. In the Post
Post may still be preferable for clients who ignore electronic invoices or do not use email at all. However, as compared to other means, post is slower, less secure, more expensive, and more difficult to get properly because addresses frequently change.
#2. By Email
Email addresses are easy to remember, and invoices arrive faster. Furthermore, the invoice must be found. Just make sure you’re sending it to the correct person or department.
How To Send An Invoice Through Email
If you’re intending to send an invoice by email, save it as an attachment. You can also utilise an invoicing program to generate invoices, which simplifies the process (hint: we have a great one). You may also use an email to send a link to an invoice created by a provider like PayPal. Many of these payment channels offer basic invoice generation.
When you send the email with the invoice attached, include all necessary information in the document, such as the name of your company, the amount you are charging, and the invoice number. To make it clear that you are sending an invoice as opposed to other types of emails, put your company name and address in the email header or signature section.
An example of a simple invoice email
This straightforward template for sending an invoice to a client or customer adheres to the guidelines outlined above. It’s brief, to the point, and to the point.
Hello (Name of Recipient),
Please find the invoice (with details) for the product or service attached.
The invoice is valid for (enter dates here). You can find our terms and conditions at (insert specifics) alongside the invoice.
Our typical payment terms are 28 days, so payment is required on (insert date).
If you have any issues concerning the invoice, please contact me at any moment (insert contact information).
We look forward to receiving payment and continuing to work with you.
(Insert your name here.)
#3. Through Online Invoicing
You can construct an invoice online and send a secure link to it to your customer. It’s convenient for them, and you can tell when they’ve opened it. Even better, online invoices let you include a ‘Pay now’ option. Customers just click ahead to pay instantly with a credit card, debit card, or through automated clearing houses such as Stripe or GoCardless.
What Should an Invoice Contain?
A typical (non-VAT) invoice must include the following items:
- Invoice: To distinguish the document from a quote, credit note, or receipt, use the phrase invoice.
- A Distinct Invoice Number: For obvious identification, the number must be unique to each invoice (no copies), and you must keep a record of the numbers and references used. The simplest method to handle this is to use a sequential numbering system.
- The Name and Address of Your Organization: This differs for sole traders and limited firms, but in general, your invoice data must clearlfy your trading name, business address, and where the customer may contact you in the event of a query or dispute.
- The Customer’s Company Name and Address: This is a routine procedure for all bills (even simplified VAT invoices), but it is critical for clients who want to reclaim any VAT charged.
- Product and Service Descriptions: When creating an invoice, include a detailed description of the items and services being charged for, with each service or item on its line for easy identification.
- The Supply Date: The supply date is the date when the goods or services were issued. The supply date may differ from the billing date; however, it is typically within 30 days.
- The Invoice’s Date: is the date the invoice was generated, not when the products were delivered.
- The amount to be paid for separate goods or services If you have a list of things in the description, each one will be labeled with its amount.
- The Entire Amount Owed: The total cost of all items specified on the invoice.
- Payment Conditions: Your customer typically accepts these after reading your terms and conditions. These are your payment terms, and they should be noted at the bottom of the invoice. Payment within 30 days, for example,
- Purchase Order: If your customer gives you a purchase order number, it should be displayed on the invoice. Some customers may also ask that the contact person’s name appear on the invoice. Requesting a purchase order is suggested because, once generated, it creates a legally binding relationship between you and your client or customer.
When Is the Most Appropriate Time to Send Your Invoice?
As quickly as possible. The longer your invoice is late, the longer it will take to get paid. This is true whether you offer things or services, but you may fine-tune the timing if necessary.
When selling items, you can request that payment clears before the goods are shipped, that payment be made upon receipt of the goods, or that conventional terms such as Net 30 be used.
If you sell services, you will only be paid when businesses complete their payment runs. You can ask customers when this is so you can aim for the deadline. If this is a long-term project, you can agree on monthly payments and invoice due dates.
If you work as a freelancer, it’s sometimes best to deliver them right away (or even backdate them) to avoid payment delays caused by the client’s rigid payment system.
Remember to double-check your invoice for accuracy before mailing it.
Tips on how to Send an Invoice through Email
Do you want to know how to send an attached invoice through email? We’ve compiled a few key pointers to help you make it as simple as possible for your clients to process your invoice, as well as a sample invoice email you may send to your customers.
#1. Attach the Invoice as an Attachment
Do not copy and paste your invoice into the email body. Attach it as a downloaded PDF file instead. Your clients can then save, print, or upload your invoice to their accounting program. If you require an invoice template, you may find one here.
#2. Include all critical information in the subject line
Many businesses receive a large number of emails, so the easier it is for them to identify your invoice, the sooner you’ll get paid. Your clients will be able to recognize your invoice far more easily if you include all of the key information in the subject line, including the invoice number and due date.
#3. Think About Utilizing an Email Template
If you need to invoice frequently, using invoice email templates might save you a lot of time. All you have to do is alter the relevant information, which should only take a few minutes, and you can quickly and easily send off your invoice.
#4. Make Certain That Your Invoice Contains Everything the Client Requires
If you fail to include all of the required information, your client may need to request a second invoice, or they may just fail to pay at all. For a thorough list of everything you need to include on the invoice, see our tutorial on how to write an invoice.
What Is the Most Convenient Way to Send an Invoice?
Email Billing: Sending bills by email is a widespread and simple way and it is important to know how to send an invoice through email. In the body of your emails, you can attach a PDF or use an invoice template.
Is It Possible to Issue an Invoice Without a UK Company?
You do not need to contact the tax authorities in advance as a private individual to issue a private invoice. In contrast to invoices from businesses, personal invoices are not subject to formal regulations and can vary as much as you like.
How Long Is an Invoice Valid in the United Kingdom?
Unpaid invoices Can remain valid for up to six years. There are some restrictions! Late, delayed, and non-payment of invoices is a big issue in the UK, with serious implications.
How Much Does It Cost to Process an Invoice in the United Kingdom?
Finally, the cost of processing an invoice varies greatly among businesses. According to Hackett and Gartner’s research, the average cost of processing an invoice in the UK is between £4 and £25 per invoice, with certain complex or error-prone procedures costing up to £50 for each invoice.
What Is the Distinction Between a Bill and an Invoice in the United Kingdom?
Bills only contain limited information, like prices and VAT, whereas invoices provide complete information and are thus legally binding. Bills are usually used to pay for products and services obtained immediately; invoices, on the other hand, can be used for immediate transactions as well as to request payment before a pre-approved date.
Conclusion
To summarize, knowing how to send an invoice through email is a necessary skill for both modern professionals and businesses. By utilizing user-friendly invoicing tools and best practices, one can easily navigate the ‘how to send an invoice through email’ process, ensuring prompt and seamless transactions that contribute to a more efficient and organized financial workflow.
“How do you write an invoice email?” is essentially the same as “How do you politely ask clients to pay an invoice?” When it comes to asking for money, the British are notoriously shy. It’s almost as difficult as discussing our salaries or asking someone on the train to be quiet. However, as a small business owner, asking to be paid is part of the job.
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