Guide
How to create an invoice
An invoice should clearly identify the seller, customer, goods or services, amounts due, payment terms, dates, and a unique invoice reference.
At a glance
- Useful identifier
- Unique invoice number
- Core financial field
- Amount due and payment terms
Overview
An invoice is a business record and payment request. A useful invoice lets both sides understand what was supplied, when, at what price, what taxes or discounts apply, how payment should be made, and when it is due. Legal invoice requirements vary by jurisdiction and industry, so tax-specific fields should be checked locally.
Include enough detail to reconcile the transaction
List the business and customer, invoice date, line items, quantities or service descriptions, unit prices where relevant, subtotal, tax or discounts, total, due date, and payment instructions. A unique number makes later bookkeeping and dispute resolution easier.
Treat invoices as part of recordkeeping
Keep copies and connect payments or credits back to the original invoice. Businesses should also verify local tax, sales-tax, VAT, licensing, and retention requirements because a visually complete invoice is not automatically compliant in every jurisdiction.
Sources and review
MOOR's explanatory text is supported by the following source links.
- Manage your finances — U.S. Small Business Administration
- Recordkeeping — Internal Revenue Service