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As a business owner, understanding how to create an invoice is essential for keeping your records in order and ensuring timely payments. Whether you’ve just started as a sole trader or you’re running an established business, a well-prepared invoice supports a healthy cash flow and reinforces professionalism.
In this article, we’ll explain everything you need to know about how to create an invoice, with practical tips and a clear example.
Table of contents:
An invoice is more than just a request for payment. It’s an official document that records a transaction and helps demonstrate revenue to HMRC. Errors or missing details can lead to payment delays or even penalties.
That’s why it’s vital to know how to create an invoice correctly, whether you’re invoicing as a business or as a private individual.
Creating an invoice template will help you stay consistent and avoid errors. Your invoice should contain:
If you’re not VAT-registered, make this clear on your invoice by adding a note such as: “Not subject to VAT.”
Learn more on our invoice requirements page.
The key is to use a numbering system that’s logical and sequential (e.g. INV-2024-001, INV-2024-002).
Make sure you have all the required information: customer details, item descriptions, quantities, prices, and agreed terms.
You can use Excel or Word, but they’re prone to errors. If you want to create an invoice for free, consider using a reliable online tool. Most platforms also allow you to create invoice PDFs, which are ideal for sharing with clients.
Check that the numbers are accurate, tax is calculated properly, and all fields are filled in. Small mistakes can slow down the payment process.
Email the invoice as a PDF and follow up before the due date. If you’re working digitally, you might want to know how to create an e-invoice — many tools let you send structured e-invoices that integrate with accounting systems.
If you’re not sure where to start, check out our invoice example. It shows you how to create an invoice that includes all required elements in a professional format.
Knowing how to create an invoice is only part of the process. Ensuring it gets paid on time is just as important.
That’s where Payt comes in. Payt’s accounts receivable software that helps you:
Payt ensures your credit management is streamlined, secure and customer-friendly. Curious to find out what Payt can do for you? Download our brochure below or schedule a demo straight away.
Yes, you can, for one-off services. Make sure to include your full name and contact details, and mention that you are not VAT-registered.
Start with a simple layout or template and include all the essentials like an invoice number, dates, description and total amount.
They’re fine for occasional use, but prone to human error. For regular invoicing, consider using dedicated software.
Add a note on the invoice such as: “VAT not applicable” or “Exempt from VAT.”
A proforma invoice is a preliminary document that outlines products or services before they are delivered or invoiced formally. It is not a demand for payment.
