How do you create a reusable invoice template?

What kind of format are you ready to maintain?

It's easy to change descriptions in Word or Google Docs. With many quantities, unit prices and tax items, it may be convenient to use Excel. Or a spreadsheet for calculations. PDF is often used for delivery. In a fillable PDF, you can input data in predefined fields. Automatic calculation depends on the file. A normal PDF may be less convenient to edit multiple times. You can use online tools to preview while filling in, then export.

Take a typical order you had recently. Check whether it's convenient to add more rows. Write long descriptions. Use discounts. Handle advance payments. You don't need the most complex option if you make invoices very rarely. But you need to keep correct data. Create some variations if companies, currencies, languages, tax treatment or major types of service are different. Don't start with a dozen very similar files.

Common data in the header

Put the business name / logo / address / email / phone / website and relevant business registration or tax details in a header that will be the same across all. Legal name or business name for your transactions. One confirmed template for each company.

Include common payment methods, remittance address, billing contact details (optional). Update the master template for changes to bank data / registration / business address / branding etc. Still double-check payment details. Don't leave real customer data in an example of a blank template.

• Business name + logo
• Contacts + relevant business data
• Confirmed payment details
• Billing contact

Fields that change

Leave a place for invoice number / issue date / due date / currency / customer billing name and address. If necessary, use separate fields for project reference, purchase order reference and service/delivery period. Use clear placeholders. Don't leave them in the final PDF.

Numbering is done centrally, separately from the page layout. If there's more than one person creating invoices, discuss who's responsible for this, how they handle voided invoices, and whether to have a unique sequence per company. Consider relevant local rules.

• Invoice number, issue date, due date
• Customer billing name, address
• Project, PO, service period references
• Currency + this invoice's relevant tax details

Start with a blank page in Word

Insert business name + contacts. Insert title/number + dates. Customer info/project references close to the title. Use a proper table for charges instead of lots of spacebars. Easier to manage columns if you move computers or if you need a longer description.

Put the subtotal, discount, tax, advance payment received, credits and balance due below it. Payment methods and brief terms. The body text and headings should be styled consistently. Avoid altering the font size of each paragraph. If the terms are complex, maybe they should be attached. But at least make sure payment directions are clear in the main document. Use terms appropriate to the agreement and local law.

Clear out contents of this transaction before saving as a master, but leave labels ready to use. It should be easy to find common information. Don't bury amount and dates under small print or under lots of text.

Charges and totals

Break out the charge into columns for description of item, quantity or hours, unit price or hourly rate, and line total. Add items for tax if necessary. Make sure there is room for descriptions. Watch out for big numbers lining up. Multiply the quantity and unit price for line total. Keep the input cells separate from formula cells. Try to protect formulas if possible.

Break out the subtotal, discount, tax, advance payment, credits, balance due. Show different tax rates or units of charge. Avoid trying to stuff everything into one calculation that doesn't really work. For zero tax, discounts, negative credits, see what's possible in the given file.

• Clear descriptions for product or service
• Quantity, unit price, line total
• Discounts, tax, credits
• Obvious total amount due

Break out items to make charges and totals clear.

Check formulas with independent numbers

Add a row, then look and see if it is included in total. It may not get included in a formula just for the top five rows, if there's a sixth item for example. Check again after you delete rows, or change tax rate or discount.

If you have two items for 150, and three for 80, then subtotal is 540. Let's say you received an advance payment of 100. So, nothing else adjusted, that means balance due is 440. Calculate independent numbers to test the template. Don't just look for a number in the total field.

Check the actual export

Real exports for various orders. Do a fixed price project. Then multiple rows of hours / materials / advance payment. Long address of customer. Long project name. Details that run multiple pages. See if columns are too tight.

Check amounts in Word and fillable PDFs according to the particular file. This website has some PDFs that are a form to fill things in. Just because you can fill in quantity, doesn't mean it will automatically update the amount.

In Excel, check formulas and the print area. A new row may look fine on screen but be missing from the PDF. Open the actual file you'll be sending. Check the last page. All the line items. All the amounts. All payment instructions. Perhaps a long description makes the payment section go to the next page. Make it readable on phones / on a computer / in print.

You can customize the layouts in Pocket Invoice. Fill in business details. Export PDF. Check the actual output every time, so you know the current document is complete.

• Actual due date. And payment instructions.
• Can add notes / references.
• Phone and print readability.
• Checklist each time before sending.

Use the actual agreement

Use the actual agreement in place of all the placeholders. Add reminders. Like “Full customer company name”. “Service period”. “Amount due”. Then remove the reminders before sending.

In the terms, you need the actual agreement. Don't use a late fee sentence from some other company. Use the tax treatment for this transaction. Don't use the sample rate. Description of services: the actual work performed.

Check these on every invoice:

• Customer.
• Number.
• Dates.
• Currency.
• PO.
• Line items.
• Tax.
• Payments received.
• Credits.
• Balance.
• Payment reference.
• Payment method.

Get rid of any irrelevant fields. Don't make things up. Or use something misleading to fill up the page. Check fixed contacts at regular intervals. Especially if the business name or bank account changes.

Don't store the master with issued files

You can call the master file “Invoice-template_service-business”. Give issued files the invoice number and customer name. Make a new document by copying the master. Never just modify the issued file itself. Never lose the final document you sent to the customer. A PDF's fixed layout doesn't mean nobody can edit it.

Add a simple version number and note like “Added advance payment field”. Months later, you may find out what version a certain old file was using. Keep a link between corrected invoices and originals, and identify versions. Don't let files with the same number and different totals circulate at once.

Consider invoicing software

Keep a simple version number and note like “Added advance payment field”. When you always have to re-input customer info. When you always have to search history. When you often have to compare several partial payments. When you worry about duplicate numbers. That's the time to consider software.

Try it with real information from a returning customer and a regular invoice. Can you see old invoices? Can you see which payment is not yet received? Can you export useful history for your accountant? How can you keep the records when you don't use the software anymore or use different software?

Invoicing software can store customer info and manage numbering and payment history. Be sure what your selected software can do. Templates are still good for small, simple jobs and low volume. Look at time saved. Not only how fancy the editor/layout is.