Making an invoice in Microsoft Word is an easy process. In general, there are two ways to create an invoice in Word. The most popular method is selecting an invoice template from their portfolio, and the second option is to construct the invoice style and template from scratch in Word. This second method takes a lot more time and effort. The article discusses both methods in detail, including the steps for creating an invoice. Also, the tips have been mentioned below for creating a simple invoice through Word.
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How to Create Invoice in Word?
Making an invoice using Microsoft Word is a simple process. However, to begin making an invoice in word, you need essential details such as company information, the data to be inserted, and other relevant information. There are two methods of creating an invoice in Word. Both of these have been discussed below in detail-
Methods of Creating an Invoice in Word
There are 2 methods to create invoices using Microsoft Word. Below given are the detailed steps to create an invoice in word:
Method 1- Using Word Templates
The readymade invoice template collection in Word is the simplest method to produce any form of an invoice. These invoice templates save you the inconvenience of manually designing the format from the start, and they can also be customised to meet the demands of your business. The following is the detailed procedure for creating an invoice through Word Template.
- Step 1- The first step involves the selection of the invoice template. The same is done as follows-
Firstly, open Microsoft Word, and select the option of File -> Template ->New.
A gallery of Word documents will appear. In the search bar, type invoice templates. Invoice templates in various formats will appear and then select the most appropriate template.
- Step 2- The second step involves customising the selected template as per the requirements. You can add the invoice details you require, such as goods sold, the number of goods sold, rate, date of the invoice, tax and tax rate, taxable value, total value, etc. Also, the company logo, contact details, and GST Number, if available, will be added to the invoice. You can add or delete invoice fields based on your company's needs, and you may add, remove, or resize the invoice's contents.
- Step 3- The next step is to save the edited template. Once you update the invoice as per your requirement, you can go to file and click on save as.
A save pop-up window should appear, allowing you to name the template and save it in the format and folder of your choice.
It can be saved in two formats: in .docx format or PDF Format. PDF format is preferred as you can directly send invoices to the customers in that format.
Finally, click on save
- Step 4- The last step is to send the invoice to the customers.
Send the invoice through email, or invoicing software, in whatever manner is most convenient for your company.
Method 2:- Creation of Invoice from Scratch in Word
There is also an option to create your invoice from scratch if you do not like any template. Follow the below-given procedure to do the same:
- Step 1- The first step is to go to the file and create a new blank document.
- Step 2- This step involves the creation of an invoice header. The following information must be mentioned in the header-
Name of the business, the Word ‘Invoice’, contact Information related to the business like city, phone number, address, email-id, etc., and business logo.
Create this information in the appropriate colours, fonts, and sizes for your company. However, keep the design basic and professional.
- Step 3- The next step is to add the invoice number and the invoice due date.
Insert the billing date, payment due date, and a unique invoice number on the right side of the business information.
The billing date is the day the invoice is issued, whereas the due date is when the invoice must be paid. The invoice number acts as an identification and is unique to each invoice.
- Step 4- The next step is to add the client information. This will include their name, address, contact details, email-id, etc. To make it obvious who is being charged, begin this section with the word "to."
- Step 5- The next step is creating a list of goods and services, which can be done by creating a table of rows and columns.
Typically, you'll need to make four columns:
- The product or service's name and description. Label this entry in the database "Description" or "Product Description."
- Product quantity. Name the row "Quantity" or "QTY" in abbreviation.
- Price per unit or “Rate”
- Each product's total price is commonly referred to as the "Amount."
Then, beneath the headers row, create a new row for each line of goods or services you've supplied to the client.
After you've completed all of the invoice data, create three new rows for:
- Subtotal - the total of all amount column totals.
- Any applicable taxes or discounts
- The total is the ultimate amount the consumer must pay after taxes and discounts are applied to the subtotal.
To build a table in Word, navigate to the Table menu. You may then see the diagram, which allows you to choose the number of rows and columns for your table. You may also select a table design that best represents your company's image.
- Step 6- Adding the payment terms will be the next step, and this should be done at the bottom of the invoice. Also, you can add some additional notes that you may want.
- Step 7- The final step is saving the invoice as a PDF and sending it to the customer.
Benefits of Creating Invoice on Word
The following are some of the benefits of using a word invoice-
- Free of cost
- Flexibility in making unique modifications to design elements such as colour, corporate logo, font, and so on.
- A lot of options are available in the form of different templates
- Easily accessible templates
Limitations of Creating Invoice on Word
Microsoft Word may be a cost-effective application for creating bills, but its drawbacks outweigh its positives.
- For starters, employing the same themes as hundreds of other businesses may make your company look unprofessional and cheap to the client.
- Even if you develop a unique template from scratch, the manual method involves significant work and accounting expertise, which quickly becomes time-consuming and unpleasant.
- When you modify a Word invoice, the format becomes confusing, making it difficult to deal with.
- At the same time, no formula may be used to determine the amount of the purchase, relevant taxes, or discounts. Everything must be calculated by hand, which offers many possibilities for accounting mistakes. These mistakes take time and may result in additional costs, delayed payments, and dissatisfied clients.
Tips for Making an Invoice in Word
Here are some methods for effectively maintaining invoices in Word-
- The Word invoice may be saved as a .doc or .docx template. This stored template may be used to generate more invoices by selecting new from existing when creating an invoice.
- Make an itemised list of the items sold or services rendered. Rates should be added to each item/service. In the Word invoice, include a link to this sheet. When the excel file is modified, click the update link to see the changes in the Word invoice.
- An invoice header containing a business logo and contact information may be made.
Some Templates Present for Invoices in Word
Some of the templates which are present in the Microsoft Gallery are as follows-
- Clean Sales Invoice Template
- Simple Service Invoice Template
- Bold Stylish Sales Word Invoice
- Red Professional Invoice Template
Also Read: Trial Balance: Rules Explained With Examples
The creation of an invoice in Word is quite simple. However, you must choose the right template and know how to create the invoice in word. If you do not like a template already there, you can build your own through the procedure mentioned above.
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