An invoice is a document which lists what the customer must pay the seller according to the terms of the seller. From the buyer’s view, it is a purchase invoice, while from the seller’s view, it is a sales invoice.

The invoice is an essential part of any business transaction and has many uses as well. A supplier or seller, therefore, should know how to create a proper invoice. Like any other document, it has parts which you should be familiar of.

• Specific, but eye-catching header. There are many types of business papers that you will deal with. They will make your head ache. They will stress you and make you confused. And that is why you should put headers on your invoices. Do not forget to include your business logo as well.

• Invoice Number. Expect that invoices will come flying around your office, not to mention the other types of papers. Because of this, you’ll need to sort them out. Have your invoices numbered. Give them a unique code to separate them from the others

• Company Information. Put your company information at the upper part of the invoice. This should include your company’s name and address and contact details such as the telephone number. This will help both the customer and the supplier to identify who pays and who receives.

• Date. Self-explanatory. On every transaction paper should be a date. This element of the invoice will help in resolving issues, if ever there will be in the future.

• Products or Services Sold. The invoice should include an itemized list of products or services sold. This part should include the product description, quantity, price of the product, and overall total of the products.

• Additional Fees. This part of the invoice should include additional fees such as taxes, shipping fees, or rates, whichever is applicable.

• Terms. This part of the invoice includes the terms of the supplier of how he should be paid by the customer and how much time the customer must pay him.

• Thank You Note and Add-Ons. As with all letters, there should be a polite expression in the end.

These are the parts of a good invoice. While there are no specific rules or guidelines on how to create invoices, these will give you assurance that your invoice will be understood clearly by both you and the other party. Also, invoice templates are also available in the Internet that will save you time and effort (remember: time is gold.)