How to Create an Invoice — 3 Easy Ways

Creating an invoice

If you’re a small business owner, you need to know how to create an invoice. The good news is that it’s pretty easy, especially if you use the right tools to streamline the process. Here are three ways to create an invoice.

How to create an invoice in Microsoft Word.

There are a variety of easy, professional-looking templates in Word. Creating invoices this way can work well, especially if you are most familiar with the software. However, it can be also a bit cumbersome. This is especially true when it comes to getting paid. Printing and sending paper invoices via snail mail can have a long turnaround time.

And even if you’re sending a Word file via email, you have to figure out the best method for customers to pay you. Usually, this involves using a third-party system (like an online payments app) or having them send along a physical cheque. But if you still prefer to create invoices in Word, here’s how you do it:

  1.  Choose from Word’s invoice template under New in the File menu.

  2.  Look for the Invoice icon in the dialogue box (usually on the left-hand side), and select the invoice type that best fits your needs.

  3.  Set a professional header that contains your business’s contact information: business name, mailing address, phone number, email and logo.

  4.  Underneath and on the opposite side from your company’s contact info, put in the client’s information. Same as above: name of the business, mailing address, phone number and email.

  5.  Each invoice should also have a unique invoice number. Always include the date the invoice is prepared, plus a payment due date.

  6.  Somewhere on the invoice, indicate what method your client should use to submit payment.

  7.  In the body of your invoice, break down products or services into line item descriptions, along with charges associated with each. Calculate the total, including any applicable sales tax, delivery fees, etc. It’s helpful to put the grand total in bold font so that it clearly stands out.

How to create an invoice online with Square Invoices.

Square Invoices has professional, ready-to-go invoice templates that you can use to stay organised and save time. All the invoices are organised in one place (your Square Dashboard), so it’s easy to keep track of what’s been paid and what’s outstanding. Square’s online invoices are customisable, which means you can do things like apply discounts (without having to do the math on your end) and add a custom tip field (in case customers are inclined to leave you a little bonus). You can even enable invoice scheduling or recurring payments to give yourself greater flexibility when it comes to sending invoices.

Square Invoices has clear pricing — you only pay 2.5% per paid invoice. If your client pays with a credit or debit card stored on file, it’s still 2.5%. And invoices are easy to send — you can shoot them out directly from your mobile device or your Square Dashboard.

Creating a Square invoice on desktop

  1.  Sign up for your free account here.

  2.  Go to Invoices in your online Square Dashboard.

  3.  Click Create Invoice.

  4.  Select a customer from your Customer Directory, or enter a new name and email address. You can enter up to nine recipients.

  5.  Add the invoice details and any applicable discounts.

  6.  Click Send.

  7.  When your clients receive the invoice in their email, they can pay you securely online. The money is usually deposited in your bank account in one or two business days.

Creating a Square invoice on mobile

  1.  Sign up for your free account here and download the Square Point of Sale app for iOS or Android.

  2.  Select Invoices from the navigation menu.

  3.  Tap Create Invoice.

  4.  Enter your customer’s name and email address, then tap Add to Invoice.

  5.  If you want to send this invoice at a later date, tap the Send option and choose another send date.

  6.  Tap Add Item to add items from your item library or enter a custom amount.

  7.  Tap Send.

  8.  When your clients receive the invoice in their email, they can pay you securely online. The money will be deposited in your account as soon as the next business day.


How to create an invoice in Microsoft Excel.

Excel offers a variety of clean, easy-to-use invoice templates, depending on your needs. However, you may run into the same logistical challenges as sending invoices via Word.

  1.  Open a new workbook from the File menu and then look for the Invoice icon in the dialogue box (usually on the left-hand side).

  2.  Choose the invoice type that best fits your needs — from a basic product invoice to invoices for specific types of services.

  3.  Fill out the custom entry fields with things like company name, address, phone number, email, logo, customer ID (if applicable), payment terms and official payee name for receiving payments.

  4.  Be sure to include a unique invoice number, a description of products or services and the client’s information.

This article is intended for educational purposes only, and is not intended to provide legal advice. For guidance on how to create an invoice that meets your particular business needs, make sure you contact a legal or tax expert.

Read more in:

Get the latest business tips and advice delivered straight to your inbox.

Each issue will feature articles and advice on how to grow sales, improve your marketing, simplify accounting and much more.