An invoice is a document that is created by an entity selling goods or services to another individual or company.
What is it?
An invoice is a document that is created by an entity selling goods or services to another individual or company. Invoices are used by companies, non-profits, contractors, and private individuals as legal forms documenting goods or services sold, required payment amounts, and payment terms.
PandaDoc’s free invoice template can be used by anyone who needs to create and send an invoice. It includes standard invoice fields including:
- Name and contact information for the buyer and seller
- An area to list the invoice’s due date
- A pricing table to document item names, descriptions, prices, taxes, and discounts
- An area to document payment terms
Why Use This Free Invoice Template?
PandaDoc’s free invoice template allows you to create a detailed, accurate invoice and send it electronically. Once you send the invoice, you’ll be able to track it to ensure that your customer receives and views the invoice. You can also set reminders to follow up with your customer if the invoice goes unpaid beyond its due date.
How To Properly Prepare An Invoice
Because invoices are legal business documents, you should follow generally accepted guidelines when preparing them. The free invoice template linked on this page is pre-formatted to make this process fairly simple. When filling it out, keep these things in mind:
- Contact Details
Contact details will be added in the top of the free invoice template. Be certain that the name, address, account number, phone number, and any other contact information used in your invoice are accurate and up-to-date to avoid confusion.
- Product Details
Provide plenty of details in the pricing table on the invoice template. At a minimum, you should have a product name, a basic description, and a product price. If possible, you should include product serial numbers or SKUs. This will help your customer validate and pay your invoice faster.
- Payment Terms & Due Date
Every invoice should include clear payment terms and a firm final due date for complete payment of all listed amounts. Use the appropriate areas in the free invoice template to note whether your payment terms are Net-30, COD, or any other payment term, and be sure that the due date is accurate and compliant with the listed payment terms.
- Discounts & Taxes
The pricing table on our free invoice template allows you to include discounts and taxes. Don’t rely on your customer to calculate taxes or discounts on their own. Refer to any previous proposals, contracts, or agreements, and make sure to include any applicable taxes, discounts, or other fees (such as delivery or disposal fees) in your invoice. This will prevent any confusion as to the actual amount owed to you.
Always keep a copy of every invoice you send in your customer files. Once you’ve completed and sent our free invoice template, you can download a PDF copy for your records. This will aid you in the event that a customer loses their copy of the invoice, and will make it easier to resolve any questions or disputes related to the invoice.