How To Create an Invoice (Plus, Get Our FREE Invoice Template)

Do you request payments via email, or worse, with no record at all?

If so, it’s time to learn how to create an invoice. An invoice is a formal request for payment that can benefit your business in several ways:

• First, it can remind customers to pay you on time.
• Second, it can support your tax records, especially if information is requested.
• Finally, it likely makes your business appear credible and polished.

Good news: It’s easy to use software and other services, like PayPal, Microsoft Word, Google docs, or Quickbooks to create professional-looking invoice templates that you can use with customers over and over.

Here, I’ll show you how to create your own invoice template using some of the most popular tools on the market. Plus, Simply Business has a FREE invoice template to download.

You can send it out to clients to request payments — or use it as an example to help you design your own invoice.

What Needs To Be in My Invoice?

An invoice doesn’t have to be beautiful — just clear and functional. After all, it serves a specific purpose — to help you get paid on time. That said, there are certain elements that typically appear in most invoices.

• A professional header. You want to appear “buttoned up” on your invoice. It helps to include a standard header with your business’s logo, contact information, and the date.
• An invoice number. Keep track of your invoices by assigning them a unique number. If you need to ask your customer about a specific invoice, you can refer to the number. In short, it helps eliminate confusion.
• Due dates. Show the payment due date at the top of the invoice, where they can easily see it. Clear due dates encourage your customers to pay you on time.
• Services or items sold. Be clear about what was sold and how much it costs. If you offer an hourly service, include how many hours you worked and your hourly rate. If you sold an item, list its price and quantity. Be clear and simple, so there isn’t any confusion.
• Fees or taxes. Depending on what you sell, you may need to add a line for sales tax and fees. For example, you could add a fee for an expedited service or if an invoice is paid late. And depending on where you live, add your state’s sales tax information.
• Total cost. Tally up the services or items you sold, as well as any taxes and fees. Then show the total amount that is due. Make this large and clear — perhaps in a different color so it stands out.
• A genuine thank you. End your invoice by thanking your customer. Remember, a personal note can go a long way and even score you more business in the future.

How To Create an Invoice on PayPal

PayPal has quickly become one of the largest online payment systems around. It allows small business owners to request money electronically and for customers to make payments via online money transfers.

PayPal is free to set up,¹ so if you don’t like how it works, you can cancel it at any time typically without a fee.

Here are the steps to create an invoice using PayPal:²

1. Log in to your PayPal account: Access your PayPal account through the website or the PayPal mobile app. 
2. Navigate to Invoicing: Find the invoicing section, which is typically under “Tools” or “Sales” depending on your account type. 
3. Create a new invoice: Click on “Create Invoice” or a similar option. 
4. Enter recipient details: Add the customer’s email address, name, and optionally their billing address. 
5. Add item details: Include the item name, quantity, price, and a description for each item. 
6. Customize the invoice: Add your logo, a note to the customer, and specify the due date. 
7. Preview and send: Review the invoice, preview it to see how it will look to the customer, and then send it. 
8. Track your invoice: You can view the status of your invoices in your PayPal account, including whether they are paid or pending.

Before you click Send, remember to preview your invoice template and double-check the information for accuracy.

How To Create an Invoice in Google Docs

To create an invoice in Google Docs, you can either use a pre-designed template or build one from scratch. You can find templates by searching the Template Gallery or accessing them from third-party sites and then customizing them with your business information, client details, and itemized services. 

Here’s a step-by-step guide:

Choose a template:

1. Open Google Docs and navigate to the Template Gallery. 
2. Search for “invoice” or browse the available templates. 
3. Select a template that suits your needs, or search online for a suitable Google Docs invoice template. 
4. Alternatively, you can start with a blank document to build your own invoice. 

Customize the template:

1. Business information: Add your company name, address, contact information, and logo. 
2. Client details: Include the client’s name, address, and contact information. 
3. Itemized services: List each service or product, including quantity, rate, and total amount. 
4. Payment terms: Specify payment due date, accepted payment methods, and any other relevant terms. 
5. Review and adjust: Ensure all information is accurate and the invoice is visually appealing. 

Save and send:

• Save the invoice to your Google Drive for easy access. 
• Consider downloading it as a PDF to maintain formatting. 
• Share the invoice with your client via email or other preferred method.

How To Create an Invoice in Word

You probably already have Microsoft Word on your computer. This makes it a convenient choice for creating invoices, especially if you don’t want to buy new software. Plus, Word makes it very easy to create an invoice template. No matter what version of Word you have, even if it’s older, it can quickly create an invoice template.

Here are the steps to create an invoice using Word:³

Using a template:

1. Open Word and go to “New”: Start by opening Microsoft Word and selecting “New”. 
2. Search for “Invoice”: In the search bar, type “invoice” and press Enter. 
3. Choose a template: Browse the available invoice templates and select one that fits your needs. 
4. Customize the template: Fill in your company details, client information, itemized list of services or products, and payment details. 
5. Save as PDF: Save the completed invoice as a PDF file to ensure consistent formatting across different devices and to prevent accidental edits. 

Creating an Invoice from scratch:

1. Open a blank document: Start with a blank Word document. 
2. Create an invoice header: Include your company name, contact information, and the word “Invoice”. 
3. Add the invoice date and number: Include the date of the invoice and a unique invoice number. 
4. Add a table: Use Word’s table tools to create a table with columns for description, quantity, unit cost, and total cost. 
5. Add rows and adjust column sizes: Add rows as needed and adjust the column widths to fit your data. 
6. Input itemized list: Fill in the description of each service or product, the quantity, unit cost, and calculate the total cost for each item. 
7. Add total amount due: Calculate and display the total amount due for the invoice. 
8. Include payment terms and account details: Add payment due date and your preferred payment methods. 
9. Add your contact information and footer: Include your company’s contact details, registration numbers (if applicable), and other relevant information in the footer. 
10. Save as PDF: Save the finished invoice as a PDF.

Tip: You also can select File and Save as Template. This allows you to quickly go back to your document to adjust small details for another customer. That way, you won’t have to rebuild your invoice from scratch.

How To Create an Invoice in Quickbooks

For many business owners, Quickbooks is a top choice in accounting software. It’s usually best for small- and medium-size businesses and can handle everything from invoicing to generating reports to payroll. If you already use Quickbooks, it’s a natural choice for creating invoices too.

Don’t own Quickbooks now? Try it out with their 30-day free trial.⁴ That should give you enough time to determine if it’s the right fit for your business.

Here are the steps to create an invoice using Quickbooks:⁵

Access the invoice form:

1. Click on the “New” button and select “Invoice”. 
2. Alternatively, go to “Customers” and then “Create Invoices.”

Select or add a customer:

1. If the customer already exists in your QuickBooks, select them from the “Customer: Job” dropdown. 
2. If not, select “Add New” to create a new customer profile. 

Enter invoice information:

1. Fill in the invoice date, invoice number, and any other relevant information like the customer’s billing and shipping addresses. 
2. Choose the appropriate terms for payment (e.g., Net due in 30 days, Due on receipt). 

Add line items:

1. Select the products or services you are charging for from your item list. 
2. QuickBooks will automatically populate the description and amount based on your item setup, but you can edit these as needed. 
3. Add the quantity and rate for each item. 

Customize the invoice (optional):

1. QuickBooks allows you to customize the invoice’s appearance, including adding your logo, choosing a template, and selecting fonts and colors. 
2. You can also customize the information displayed on the invoice, like showing or hiding the shipping address, invoice number, and columns within the line items table. 

Choose saving and sending options:

1. Select “Save and Close” to save the invoice and close the form. 
2. Choose “Save and New” to save the current invoice and create a new one. 
3. Select “Save and Send” to email the invoice to your customer. 

You can also choose to “Print or Preview” the invoice to print a paper copy or view it before sending. 

Some versions of QuickBooks also offer the option to “Save and Share Link,” which provides a link to the invoice that you can share with your customer. 

Tip: Quickbooks also lets you set up online payments. All you have to do is select “Get Set Up” to fill out an application. This will allow your customer to pay you via credit card.

References:

1. https://www.paypal.com/us/cshelp/article/what-are-the-fees-for-paypal-accounts–help383 ↩︎
2. https://www.paypal.com/us/cshelp/article/how-do-i-create-and-send-an-invoice-help319 ↩︎
3. https://support.microsoft.com/en-us/office/create-estimates-and-invoices-b5d08f2c-4ca2-47e7-ba41-1f472c81b7c4 ↩︎
4. https://quickbooks.intuit.com/free-trial/ ↩︎
5. https://quickbooks.intuit.com/learn-support/en-us/help-article/accounting-bookkeeping/create-invoice-quickbooks-desktop/L04J5po9E_US_en_US ↩︎