What is an Invoice?
An invoice is a document given to the buyer by the seller to claim payment after a purchase is made. It is a legal document and can be used as proof of completion of a transaction. After the payment is made, an invoice can be used as a bill. There are various ways to generate an invoice. Many business owners use Microsoft Word, Excel, Google Docs, etc. to generate invoices because –
- Almost everyone has these applications
- They are free to use (the Microsoft applications come with the Windows package)
- It is easy to customise the invoice according to our needs
- It is easy to add or delete items and make other changes
In this article, we will discuss how to generate an invoice format in Word.
Invoice Format in Word
The invoice format in Word is perfect for small and mid-size businesses. The software is affordable, and you can generate invoices with a minimal learning curve. Even people with basic knowledge about Word can create a customized invoice using the various tools the software provides.
There are two ways to create an invoice format in Word.
Option 1: Using Word Templates
Using the templates in Word is one of the simplest ways to create an invoice format. To create an invoice format in Word using templates, you need to:
- Open Microsoft Word
- Click on File and select New
- Find “Search for online templates” section
- From the multiple invoice formats, select one
- Download the format, fill in the required information, and save it to your PC. You can send it as an e-invoice to your customers.
- Whenever you wish to create a new invoice, follow the above steps
- You can add your company name and logo to the template and take printouts (which you can later fill by hand)
- You can add or delete other details according to your requirements
Option 2: Using Word
While Word templates are easy to use, they allow only a certain degree of customisation. For example, you cannot change the background colours and patterns in a template. In such cases, you can create an invoice format in Word directly.
- Open Microsoft Word
- Click on File and select New Document
- Choose the Header format to insert the header on the document (the name of the document “Invoice” on the left and the company logo on the right go here)
- Go to the next line and add the date, invoice number, company name, and company details in smaller font
- Insert the name of the buyer on the right side of the document below the company logo
- Next, create a table and include an itemised list of the products/services purchased along with the quantities and rates plus taxes of each item. Include any discounts, if applicable
- Write the total amount of all the items
- Make sure there are empty areas to enter information
- Write Signature on the bottom right of the page and leave some space beneath it to include your sign
- You can add patterns and colours of your choice to the background
You can use invoicing apps such as myBillBook to generate customised and professional invoices in seconds. Software like Microsoft Word is useful as they let you customise and even add a personal touch to invoices for better customer relationships.