5 Easy-to-Use Invoice Templates for Small and Medium-Scale Businesses
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| Sample of Invoice Template for SMEs |
If you’re a small or medium-sized business owner you know just how tedious financial admin can be. The chances are, you deal with dozens, if not hundreds, of invoices every month.
However, managing invoices doesn’t have to be a tedious, time-consuming task. With the right information and a well-constructed template, sending and receiving invoices can become easier and more streamlined.
Businesses need a variety of different invoices to keep up with the demands of different vendors, clients, and customers. Knowing what each of them looks like and which context to use them in is a huge advantage.
Let’s look at 5 easy but essential invoice templates that every SME should know about.
5 Simple But Useful Invoice Templates Every SME Needs
Long gone are the days when you just had one invoice template that you filled in for every business interaction. In today’s world, we have dozens of different invoices used within the business sphere. However, only a handful will be needed on a regular basis.
We’ve rounded up five of the most fundamental yet easy-to-use invoice templates for you to assess so that your payment system is as prepared and organized as possible.
1. Pro forma invoice
A pro forma invoice is a staple of every SME business. Different to a standard invoice (which is typically sent the day after a delivery or service agreement), a pro forma invoice is sent as a preparatory bill before any formal agreements are made.
This document allows the client to look over the details of the invoice and decide from that point whether they would like to confirm the deal. Essentially, a pro forma is more of an invoice proposal than an invoice itself.
The total amount owed at the end of a pro forma invoice is typically an estimate rather than the official amount. From there, the two parties can make adjustments before moving forward.
2. Commercial invoice
A commercial invoice template is essential if your business sells products internationally. Its format typically includes extra details such as:
- Country of origin
- Consignee and chipper info
- Packaging terms
- Shipment format
- Authorized signature
An invoice template of this description may also feature information such as package weight, volume, and respective shipping information. This makes it much easier for your business, your client, and the shipping handlers to transport your products safely.
3. Recurring invoice
As the name suggests, a recurring invoice is one that you’ll use consistently over time. If you do business with the same client on a regular basis, a recurring invoice can help reduce the amount of time you spend on each document and ensure that your main information remains the same while only the date (and possibly the totals) change.
This type of invoice template is especially useful if you have several recurring clients as it saves you a lot of time and effort in drawing up a new document every time.
4. Interim invoice
An interim invoice breaks down the total costs of a big project into smaller, incremental payments that get made over a longer period of time.
For example, if your business is in web development, you may need to give your clients an interim invoice every month until the completion of their website. This allows your cash flow to remain strong while still actively working on a long-term project. It also reduces the chances of reaching the end of a project and a client taking their time to settle a large outstanding bill—or the risk of them not settling at all.
5. Past-due invoice
Unfortunately, late invoices are pretty common occurrences. Fortunately, there are ways to combat this issue, and one of them is to use a past-due invoice.
This type of invoice gets sent out when too much time has passed since the agreed-upon payment date. It will often include a late fee or penalty that pushes up the total amount owed to compensate for the inconvenience. It’s also designed to incentivize your client to pay as soon as possible.
4 Tips For Making Your Invoice System More Efficient
Finding ways to improve the efficiency of your invoice system is important. Not only does it make admin easier, but it also means you are more likely to get paid on time by your clients.
If you’re new to the position of SME business manager or you simply don’t have a knack for accounting, streamlining your invoice system might feel like a daunting task. However, this list of four tips can help you develop a system that’s simple and easy to manage.
- Use invoicing software – In this day and age, we’re lucky enough to have access to high-functioning software tools that do menial tasks for us. Invoicing software can be used to consolidate your invoice system and automatically process a lot of unwanted admin.
- Provide more than one payment option – Sometimes, limited payment options can slow down the invoice process. Make it easy for people to pay you by providing a variety of options. Clearly state these options on your invoice and include any links that make payment easier.
- Send your invoices out promptly – Don’t wait around to send out your invoices. Draw up and deliver them to your clients as soon as possible in order to avoid delay and establish yourself as a professional in your field.
- Make sure your invoices are accurate – If you’re not paying attention, there are many common invoicing errors that could sneak their way into your documents. Screen each one to ensure they are 100% accurate in order to avoid problems along the way.
Use invoice Templates To Your Advantage
When it comes down to it, knowing how to make an invoice that suits a specific payment structure or requirement is all part of running a business—no matter what size. Even if you’re just starting to set your business up, having a smoothly functioning invoice system will help to keep you organized while ensuring you always get paid on time.
With these five invoice templates, your business should be prepared for any kind of client, whether they are a regular customer or once-off interactions.