How To Choose The Best Invoice Format

Are you confused about which invoice format to use for your business? You might know how important is invoicing in your business. You need to clearly mention the product/service you rendered in the invoices with the total amount and the payment due date so that you get paid on time. The last thing you want to do would be to send an invoice that looks shabby and unprofessional, as invoices help in creating a lasting impression on your customers about your business. 

So, you need to make this process right. When there are hundreds of invoice templates available online you need to choose the invoice format that best suits your business. 

In this blog, you will find the top tips on how to choose the best invoice format for your business. Dive in and check it out. 

  1. Choose the right format
  2. Understand your business needs
  3. Use customizable templates
  4. Use proper Invoice Design
  5. Select invoice format with the right fields
  6. Choose the right invoice software

1.Choose the right format 

The invoice templates available online come in different formats such as Excel, Word, Google Docs etc. Each format has its own pros and cons. 

  • Invoice Format in Excel/ Google Sheets: If you are looking for formats that have automatic tax and total amount calculations you can choose invoice formats in Excel or Google Sheets. For businesses that offer a lot of products/ services, MS Excel would be the right choice. When you have a long list of items you need a format in which you can add tables and columns easily. If you are working on Google Sheets there is no worry of losing your documents. You can also easily give access your team members to work on the invoice.

If you want to check out some invoice formats in Excel, take a look at our template page. 

  • Invoice Format in Word/Google Docs: If you want to create simple invoices without any complex formulas or fields, MS Word is the ideal choice for you. It is easier to design your invoice and make it look attractive by adding your brand colour theme, logo and signature. 

You can check out simple invoice formats in Word and download them for free here. 

2. Understand Your Business Needs

understand your business

Before you choose an invoice format it is very important that you understand your business requirements. The ideal invoice format is the one that fits the industry you are in. Some businesses might require customized fields that are relevant to their business. 

For example, if you are a GST registered business you will require a GST invoice format with fields to enter the GST tax rates and other mandatory fields required in a GST invoice. Whereas, if you are a freelancer, you will require an invoice format for freelancers that has fields relevant for a freelancer’s service such as the period of work, the total rate for the time taken to complete the work etc. 

You should also make sure you ask yourself these questions.

  1. How many invoices do you send often?

If you have to send a limited number of invoices you can choose a simple invoice format in Excel or Word. You can check out our invoice templates and choose the simple invoice format and customize it as per your needs. 

If you are running a business in which you need to create more than one invoice a month we highly recommend you choose an invoice software. Your invoicing process will be more simplified and organized leaving you more time to concentrate on your business. You can try using Zenys business management tool as it helps you with every part of your invoicing process. Here are some of the highlights of the tool:

  • Storing customer information
  • Easy to create invoices for each customer or sale
  • Sending invoices directly to your customers
  • Tracking of invoices
  • Online payment collection

There are many more you can do with Zenys. Start your free trial and see if it works for your business.

  1. Do you offer products or services?

There are both product and service invoice formats. If you are a business selling products you can choose a simple invoice format in Word or Excel with the item list field for products. The item list table should contain columns such as the product name,  quantity, rate per quantity, tax( if applicable) and the total amount for the product. 

If you are offering services you should ensure that the item list or the table has extra rows to add the description of your service. 

You can choose and download your product or service invoice formats by clicking here.

  1. How many products/services do you offer?

It is important that you check whether the invoice format you choose goes well with the number of products or services you provide.  If you are selling only a few products or offering a few services you can choose a simple invoice format in PDF, Word or Excel. 

If you want to add a long list of items to your invoice it is better if you opt for an invoice generator tool like Zenys. Using an invoice generator you can store the product details tagging to each sale or customer and is less likely that you make errors while entering them into your invoice. 

3. Use customizable templates

Make sure you will be able to customize your invoice format. Sometimes, you might need to add an additional field or a column. The invoice format you choose should not restrict you to only adding values to their pre-defined fields. The invoice format should have fields that allow you to upload your company logo and signature. You should also be able to change the colour of the template according to your brand theme. 

4. Use proper invoice design

Simple Invoice with GST

Another factor to consider is the design of the invoice format. You should check whether the invoice format contains fields that are readable. Your client should be able to notice these three pieces of information at a glance:

  • The sender of the invoice,
  • the total amount and
  • the payment due date

Download the invoice format as shown in the picture. You can open it in excel and customize it the way you want. Want templates in other formats like Word, Google sheets or PDF? Feel free to check out our template page with 20+ invoice designs and formats. You can easily download the templates for free.

5. Select invoice formats with the right fields

Ensure that the invoice format contains all the mandatory fields required in an invoice.  Refer to the mandatory fields in an invoice to know more about the details needed in an invoice.

6. Use the right invoice software

invoice software

How about a tool to manage your whole invoicing and collection process? Your invoicing process might not be just about creating invoices. You will also need to send invoices to clients and collect payments from them. So, it is better to switch to an invoice software where you can do all of this from one place. 

When choosing an invoice software make sure it is easy to use and suitable for your business. It should have multiple invoice templates that fit your business needs and should be customizable. Check for features that will allow you to track your invoices and collect payments online. You can try using our Zenys invoice software designed specifically for small businesses.


Leave a Reply