Freelancing has gained popularity in recent years. An attractive option, especially amongst the youth, it allows freedom in terms of time, place and kind of work one takes on. Businesses have also welcomed this influx of freelancers in the market and given them plenty of opportunities. Hence, freelancing does not look like a trend but a type of employment that is here to stay.
As the freelancing boom continues, there is a problem that many professionals face every day- payment.
An invoice acts as an efficient solution to this. So, here is an introduction to an invoice, how it is useful for you and a few ways to make the invoicing process even easier.
What is an invoice?
An invoice is essentially a document that states indicate the amount that a buyer needs to pay for the goods or services that they have procured from the seller.
It contains the following information
- The word ‘Invoice’
- A unique invoice number for both the seller’s and the buyer’s reference
- A description of the product/service
- Buyer’s name and contact details
- Seller’s name and contact details
- Date the product or service was procured
- Date the invoice was sent
- Method and details of payment
- Specifics of the amount of payment such as quantity and discounts
Advantages of an invoice
An invoice makes the tedious work of procuring and making payments easy in these ways:
- It creates clarity between you and your client on the specifications of the service rendered.
- It serves as a reminder that you need to be compensated for your work.
- It ensures a fast and organized payment process.
- It acts as a proof of the good provided or service rendered in legal issues.
- It provides assistance in taxation by providing reliable information.
However, making individual invoices can get time-consuming and exhausting, especially if you need to create a lot of them. In such as a case, it is prudent to use a template or software to create invoices for you. Here is how each of them can help you-
- Use an invoice template: An invoicing template greatly lightens the workload that comes with making invoices. There is a format already in place that you need to simply fill out. It also contains space for the required information so every important information is included. Moreover, a great free invoice template is easy to find. They are, in general, easy to manage and user-friendly.
- Use an invoice maker: An invoice maker or invoice generator can relax a lot of your payment tensions. It takes the concept of an invoice template further by saving the information of your first template, so, you do not need to fill or copy and paste basic information every time you make a new one. They also keep the previous invoices organised and one can also send reminders to ensure timely action. Another reason why one should use an invoice generator is that the payment process (such as a payroll software) of most businesses is completely online. This allows one to interact in the same forum as their client and you remain a part of their online payroll system.