Features
INTEGRATION
Devices
Resources
Evolution of invoices
- 01
Stone invoices
Invoices and records of transactions were made as early as 5000 BC in Mesopotamia. The merchants used to carve details of transactions on clay or stone tablets using the earliest form of math.
- 02
Hand-written invoices
Invoicing later evolved to hand-written invoices on animal skin, parchment, or paper. These invoices contained most of the elements of a modern invoice and used signatures or seals.
- 03
Electronic invoices
The invention of computers brought about the next big change in invoicing. This revolution was triggered by the desire to reduce traditional costs and labor. Invoicing became cheaper, easier, and faster with electronic invoices.
- 04
Online invoices
The advent of the internet led to better, more secure, more green ways to communicate with clients. Online invoices are paperless as the invoices are sent through email, and payments are made online.
- 05
Mobile invoices
Invoicing in the modern world has gone mobile. Specialized SaaS (Software as a Service) companies ensure that invoicing is now automated, secure, and instant, so you can invoice on the move.
Functions of invoices
Companies need to deliver invoices in order to demand payments. An invoice is a legally binding agreement showing both parties' consent to the quoted price and payment conditions. However, there are other benefits to using invoices.
Maintaining records
The most important benefit of an invoice is the ability to keep a legal record of the sale. This makes it possible to find out when a good was sold, who bought it, and who sold it.
Payment tracking
An invoice is an invaluable tool for accounting. It helps both the seller and the buyer to keep track of their payments and amounts owed.
Legal protection
A proper invoice is legal proof of an agreement between the buyer and seller on a set price. It protects the merchant from fraudulent lawsuits.
Easy tax filing
Recording and maintaining all sale invoices helps the company report its income and ensure that it's paid the proper amount of taxes.
Business Analytics
Analyzing invoices can help businesses gather information from their customers' buying patterns and identify trends, popular products, peak buying times, and more. This helps to develop effective marketing strategies.
There are several different types of invoices
Pro forma Invoices
A pro forma invoice is a document that states the commitment of the seller to deliver goods and services to the buyer for an agreed-upon price.
Elements of an invoice
A good, legally-sound invoice should contain all the information the customer will need to make payments and provide an avenue to address any questions. Let's take a peek at the various elements of an invoice:
The word "Invoice" and the company logo must be prominent on the document so that they can be identified easily.
Every invoice must have a unique identifier like an invoice number, purchase order number, or reference number to distinguish it from the rest of the seller's invoices.
Recording the date of service rendered or date of sale can help simplify cataloguing.
The date of sending the invoice must be included to ensure payments are made on time.
The invoice should clearly show the seller's name and contact information to ensure the customer can contact you for any queries.
The client's contact info must also be included to ensure the legality of the document.
All the company's terms and conditions, including due dates and penalties for non-payment or partial payments, must be clearly included in the invoice.
The invoice must describe each product or type of service rendered.
The cost of each individual item or service must be included.
The taxable amount for the products or services must be included.
The total amount due for payment must be clearly included in the invoice.
Invoices can be personalized by including a customized thank-you note.
The word "INVOICE"
The word "Invoice" and the company logo must be prominent on the document so that they can be identified easily.
Invoice number
Every invoice must have a unique identifier like an invoice number, purchase order number, or reference number to distinguish it from the rest of the seller's invoices.
Date of service rendered
Recording the date of service rendered or date of sale can help simplify cataloguing.
Date of sending invoice
The date of sending the invoice must be included to ensure payments are made on time.
Contact and name of org / seller
The invoice should clearly show the seller's name and contact information to ensure the customer can contact you for any queries.
Name and contact of buyer
The client's contact info must also be included to ensure the legality of the document.
Terms and conditions
All the company's terms and conditions, including due dates and penalties for non-payment or partial payments, must be clearly included in the invoice.
A line detailing each product or service
The invoice must describe each product or type of service rendered.
Cost per unit of product
The cost of each individual item or service must be included.
Tax rates
The taxable amount for the products or services must be included.
Total amount owed with currency
The total amount due for payment must be clearly included in the invoice.
A personalized note
Invoices can be personalized by including a customized thank-you note.
Tips for invoicing
Here are some tips to help you make the best use of your invoices and ensure that you get paid promptly:
Incentivize on-time or early invoice payments
Make the invoice and payment process more convenient for customers
Use recurring invoicing, if applicable
Negotiate and establish payment terms in writing
Get upfront payments
Automate invoicing
Work on creating closer relationships with clients
Hold the work or stop projects if a client doesn't pay on time
Want to learn more about how to get a customer to pay an invoice on time? Forbes has some guidelines for you.
A Modern Invoicing Software for your Business
Handling your business becomes easy with an online invoicing software like Zoho Invoice. Using Zoho Invoice, companies can not only automate and speed up their invoicing process, but also get paid on time.
Learn moreA Modern Invoicing Software for your Business
Handling your business becomes easy with an online invoicing software like Zoho Invoice. Using Zoho Invoice, companies can not only automate and speed up their invoicing process, but also get paid on time.
Learn more
