written by khatabook | November 8, 2022

How to Create Invoice in Word? Tips & Tricks You Need To Know

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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.

Did you know? As of 2022, 1.4 billion people use Microsoft & their services. 

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-

Also Read: What is the Difference Between Auditing and Accounting? - Learn Auditing and Accounting

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.

Also Read: Know the Difference Between Procurement and Purchasing in Detail 2022

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.

Also Read: Straight Line Method of Depreciation - Straight Line Depreciation Formula

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

Conclusion:

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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FAQs

Q: Give some examples of the templates already present in the Microsoft Gallery?

Ans:

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

Q: What information should be included in the header if the invoice is prepared from scratch?

Ans:

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, fax, etc.
  • Business Logo

Q: What are the two formats in which the invoices can be saved in Word?

Ans:

The invoices can be saved in two formats either in .docx format or PDF Format.

Q: What are the two methods of creating an invoice in Word?

Ans:

The two methods of creating an invoice in Word are as follows-

  • Creating invoices in Word through already present invoice templates
  • Creation of Invoice from scratch in Word

Q: What are the different invoice details that need to be added to the invoice templates?

Ans:

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.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.