For many businesses, invoicing customers is how you get paid. But manual invoicing processes can be time-consuming, and invoices can look unprofessional. Invoice generators streamline the essential invoicing process, which can speed up how quickly you get paid.
With an invoice generator—like accounting software—you can create, customize, send, and track professional invoices in just a few clicks. By using accounting software to invoice, you can also accept credit card payments and automatically record the transaction in your books.
So how does it work? Read on to learn how to make an invoice.
What is an invoice?
A seller gives a buyer an invoice to request payments for goods or services. The buyer can reference the invoice document to see how much they owe, how to pay, and when it’s due.
Here’s an example of how an invoice may look:
What information do I need to generate an invoice?
You’ll need to include information about you (the seller) and the recipient (the buyer), products or services, and amounts.
Gather and include the following to generate an invoice:
- Business info
- Customer info
- Invoice number
- Invoice date
- Terms
- Due date
- Product/service
- Quantity
- Price
- Sales tax
- Discount
- Totals
- Invoice comments
Do businesses need to provide invoices?
Businesses may need to provide invoices to collect payment from customers. Sending an invoice is common in B2B (business to business) companies and e-commerce businesses.
The IRS lists “invoices” as a supporting business document that you should keep in your records for taxes.
Not all businesses routinely give invoices to customers. For example, a retail store selling to a consumer typically collects payment at the point of sale and provides a receipt. However, you should provide an invoice if a customer asks for one.
Providing invoices helps you:
- Stay compliant with IRS recordkeeping guidelines
- Be transparent with customers and professional
- Easily track payments and accounts receivable
How do customers use invoices?
Invoices aren’t just important tools for your business. They’re also essential for your customers.
Customers use invoices to determine:
- How much they owe
- When payment is due
- How to pay their bill (e.g., credit card)
Invoice recipients also use invoices for their own accounting and bookkeeping purposes. They may also reference the invoice if there are issues or discrepancies.
What are invoice generators?
An invoice generator is a tool that helps streamline the process of creating invoices. Using an invoice generator is an alternative to creating an invoice manually by hand.
To use an invoice generator, you generally just need to add your company logo and branding and fill in invoice details.
Examples of invoice generators include:
- Templates
- Invoicing software
- Accounting software
Invoice templates
An invoice template is an already-designed document that you can customize and download as a PDF, Word/Google Doc, or spreadsheet.
You can often find free downloadable templates online.
Invoicing software
Invoicing software is a system that streamlines the process of creating, sending, and managing invoices.
You can do more with invoicing software than templates, such as accepting online payments, sending out reminders, and more.
Accounting software
Accounting software typically includes free invoicing tools so you can automate invoicing and manage your business expenses and income.
Here are a few accounting software invoice features:
- Create and track invoices
- Accept online payments
- Create and send estimates and convert to invoices
- Set up automatic invoice payment reminders
- Set up recurring invoices
How to make an invoice
Creating an invoice from scratch can take time formatting, or you can use a system to streamline it.
You can generate invoices:
- By hand
- With templates
- Using invoicing software
- With accounting software
Creating invoices by hand (e.g., using a Word Document, spreadsheet, etc.) is the most time-consuming option. You need to format the document and add information manually.
There are templates available online for free. Invoice templates are already designed, so you can skip the formatting step and start plugging in the invoice information.
Invoicing software takes free templates a step further. You often have more robust functionality, like the ability to accept payments and send reminders.
Accounting software streamlines everything from creating invoices to updating your books. You can accept payments, set up recurring invoices, send reminders, automatically record credit card payments in your books, and more.
How to make an invoice with accounting software
Accounting software streamlines the process of invoicing customers for business owners who want to cross the task off their list and quickly get paid.
You can generate invoices online with accounting software in the following steps:
- Set up basic information in the system
- Enter invoice details
- Email or print the invoice
- Make sure payments are recorded in your books
- Take advantage of other invoicing features
How to make an invoice with accounting software:
- Set up basic information in the system
Accounting software streamlines the process of creating, sending, and tracking invoices. But first, you need to enter a few key details about your business.
Set up basic information about your business and customers in the system, including:
*Customer information
*Product information
*Sales tax rate
*Default payment terms
You may also be able to add your company logo and branding colors to customize the invoice for your business. - Enter invoice details
After setting up the basis for your invoices, you can now create the invoice you want to send out.
The steps may vary by accounting provider, but typically you’ll need to:
1. Choose which customer you’re invoicing
2. Customize any pre-added information, such as the invoice number, invoice date, due date, payment term, or product/service price
3. Add the quantity of the product
4. Provide a discount (e.g., early payment discount), if desired
5. Add comments - Email or print the invoice
Once you create the invoice, you can email it directly to the customer or print a PDF version to give them.
- Make sure payments are recorded in your books
When you use accounting software to invoice, you can easily record payments in your books so they are added to your General Ledger.
The accounting system will automatically record payments in your books if the customer pays with a credit card, Google Pay, or Apple Pay.
If the customer pays in cash or check, you must apply the payment to the invoice in your accounting system. This usually takes just a few steps. - Take advantage of other invoicing features
You typically have advanced invoicing features with accounting software that can further automate the process and save you time.
For example, you may be able to:
*Duplicate the invoice
*Set up recurring invoices
*Automate invoice reminders
Common invoice generator FAQs
You can use templates and software (e.g., accounting software) to streamline the process of generating invoices.
Yes, invoices can be digital! In fact, the majority of invoices are e-invoices. E-invoicing is the process of billing a customer online instead of printing and handing or mailing them the invoice.
Many sellers and buyers prefer sending and receiving digital invoices because of its convenience. And when you prepare a digital invoice, you can automate the process and speed up customer payments.
After you create an invoice using software, there should be an option to “Print” or “Email” on the page.
If you’re using a PDF or document template, you can print the invoice like you normally would print documents on your computer.
Create and send invoices in minutes with Patriot Accounting™
You can easily generate invoices with either Patriot’s Accounting Basic or Accounting Premium software.
Import customers from a spreadsheet, set up your products and services, and start creating an unlimited number of invoices.
Here are a few invoicing features of Patriot’s accounting software:
| Accounting Basic | Accounting Premium |
|---|---|
| Email or print invoices | Everything in Basic, PLUS: |
| Create and track unlimited customers and invoices | Invoice payment reminders |
| Accept credit card payments, Apple Pay, Google Pay, and ACH payments | Custom invoice templates |
| Recurring invoices | |
| Create and send estimates, and convert to invoices |
Learn how to make an invoice with Patriot Software.
This is not intended as legal advice; for more information, please click here.
