With changing business demands, the online invoicing software market has changed a lot. So, to get paid on time, you will need to choose the best invoice and see how you have to bill your customers.
Here are the common invoices used by businesses and their purpose.
- Standard Invoice
A free invoice generator app can easily make these invoices easily and are flexible enough to fit all kinds of business cycles. Make sure to add the contact details of both parties, invoice number, total amount, and taxes correctly to avoid confusion at a later stage.
- Credit Invoice
Also known as a credit memo, these invoices are issued when companies need to refund, discount, or correct previous invoicing errors. Keep in mind it will always be a negative total number. For example, if you are supposed to refund $100, the total on the invoice would be -$100.
- Debit Invoice
Debit invoices also help in addressing invoicing errors. But, in this case, it is done to add up charges for the additional hours worked.
- Mixed Invoice
Mixed invoices combine both credit and debit charges. You can express the total amount in a positive or negative number. While small businesses rarely use this kind of invoice, it can be useful if you are giving a discount for one project and have worked additional hours on the other and billing it in the same invoice.
- Commercial Invoice
These invoices are made for goods sold to customers internationally. They include all the details of the sale made and information related to customs duties for cross-border sales. You will need to add information like packaging format, weight/volume, the quantity of shipment, and other relevant information.
- Timesheet Invoice
When freelancers or small businesses work by the hour, this kind of invoice comes in handy. They are mostly used by contract employees. Creative agencies, psychologists, business consultants, and lawyers often use these kinds of invoices.
- Expense Report
Expense reports can be generated quickly with the free invoice generator app. These are usually made by employees for the reimbursements of their business-related expenses. Whenever they go for lunch meetings or travel for business, they will claim the cost for the same by submitting their expense report.
- Pro Forma Invoice
A pro forma invoice is an estimated invoice that you can send to your client before starting with your services. It gives out the estimated cost of the work. But, these invoices will need to be altered once the project is completed to show the actual hours worked.
- Final Invoice
A final invoice just like its name is sent after the project has been completed. It includes details like the project’s total cost, due date, accepted payment methods, invoice numbers, and other relevant details.
- Past Due Invoice
A past due invoice is sent in cases wherein a client has not cleared payment by the due date mentioned on the invoice. You should send past due invoices as soon as you notice that the date has been missed. Make sure to mention all the details and payment terms when making this invoice with your online invoicing software. Also, if you are charging any late fees or interest charges, make sure to highlight them.
- Recurring Invoice
Recurring invoices are ideal for businesses that charge the same amount for their services. Such kinds of invoices are used by IT businesses that charge the same for subscriptions for months and years altogether. At the same time, if you are a digital marketer or freelancer and offer social media marketing packages to clients with standard pricing per month, these invoices can come in handy. The free invoice generator app will help you automate the end-to-end process and send out invoices the same day each month without you worrying about the same.
These are some of the invoices you can make using the free invoice generator app. To avoid confusion with clients, you can always check with them on what kind of invoice is best suited for their business needs. This will help in expediting payments and lay the foundation of a smooth relationship. So, take that leap of faith by helping you find your online invoicing software and get going!