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Late payments can push businesses over the edge and into insolvency. In reality, the typical UK SME spends an astounding 1.5 hours every day chasing five unpaid invoices.
One way to maintain a healthy cash flow is to keep track of invoices and ensure timely payment. However, knowing the right type of invoice to use for different business situations, timing and needs is crucial in the invoicing process. It enables you to expedite billing and increase efficiency, saving valuable time.
In this post, we’ll explore the essential types of invoices every business needs. We have also included customizable templates for each invoice type, so you can quickly modify them to suit your specific business needs.
Here’s a short selection of 8 easy-to-edit simple lease agreement templates you can edit, share and download with Visme. View more templates below:
Here are some benefits of using different types of editable invoices that suit your business needs and not just generic invoices:
Each type of invoice serves a distinct purpose and provides specific information related to the transaction, such as itemized details, discounts, taxes or additional charges. This transparency builds trust with your clients and reduces the likelihood of disputes or misunderstandings.
An official invoice serves as a documented record detailing the products or services you have supplied and the corresponding amount owed by your customer. This makes invoicing the easiest way to track payments, which is crucial during annual budget reviews and tax filing procedures.
Utilizing the right invoice type will help you communicate your billing expectations and enable your clients to adhere to specific payment schedules. For instance, if you are a subscription-based company and offer recurring invoices, your customers can understand that they'll be automatically billed when their subscription is due.
Each invoice type allows for better financial record-keeping and analysis. It provides specific data that can be helpful for accounting, tracking expenses, or analyzing customer behavior.
By maintaining a well-organized record of invoices, you can effectively manage your accounts and conveniently retrieve essential information whenever needed.
Visme has a wide range of professional and easily customizable invoice templates. Depending on your business needs, you'll need any of these 16 types of invoices to make your billing efficient.
With Visme’s invoice generator, editing each of these templates becomes a breeze.
But first, hear what Samantha, a small business owner, has to say about creating with Visme.
Visme is easy to use! I'm a beginner and after only two hours, I'm already making professional-looking slides for our company's board meeting in three days. I was looking for flow-chart style templates with other brands in the trial phase and I couldn't find anything. I tried Visme and instantly found at least 100 different flow-chart template options.
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Whether you're selling products internationally or providing a service with flexible costs, this proforma invoice template gives clients a clear understanding of what they're paying for.
It outlines all essential elements of an invoice, such as sender and recipient details, description of goods or services, quantities, prices and total amounts. You can easily customize this template with your brand's assets. Don’t forget to use Brand Wizard to automatically add your brand’s assets, such as your logo and colors, to your invoice. You can create a professional logo that creates a solid impression by using Visme's logo maker.
The template includes dedicated sections for all the important details: date, overdue period, and accumulated late fees. It's designed to present these details in an easy-to-understand format, ensuring your clients are fully aware of their obligations.
With this template, you can balance firmness and politeness, which is key when dealing with overdue payments. Expertly designed for clear communication and professionalism, this template assists businesses in managing late payments in a courteous and effective manner.
A purchase order is used to request goods or services from a supplier.
Businesses and vendors of all sizes need it to keep track of transactions.
This purchase order template makes it easy to outline the specific goods or services the customer is purchasing, ensuring clarity and accuracy in every transaction.
It includes spaces for all necessary details, such as the supplier's contact information, a list of ordered items, quantities, unit prices, delivery dates and the total amount due. This clear, itemized format ensures you and your customers are on the same page regarding every aspect of the order.
RELATED: Purchase Order: What Is It and How Do You Create One?Optimize your billing process with this consolidated invoice template, specifically designed to bundle multiple invoices into a single, comprehensive document. Ideal for businesses providing multiple services or shipping multiple orders to a single customer, this template ensures a streamlined, organized approach to invoicing.
It clearly enumerates individual transactions, displaying specific details such as the dates, descriptions, quantities and costs of each service or product provided. It calculates subtotals for each transaction and provides a grand total at the end, offering a straightforward overview of all business activities within a specified period.
You can use invite team members to work on your invoices together or share invoices for review. Visme's collaborative features make this super seamless, saving time and ensuring that everyone is on the same page.
Ensure consistent cash flow and secure work agreements with this retainer invoice template. This template is specifically designed for businesses that work on retainer agreements. It allows you to invoice your clients in a professional manner.
It outlines crucial details such as client information, service details, payment terms and the retainer amount due. You can also find spaces for any initial charges or specific services rendered, as well as a section for deducting these costs from the total retainer amount.
Want to update service charges and other details across multiple invoices? Use Visme’s dynamic field tool to easily update your document and your clients will see the changes in real time!
If you handle lengthy, complex projects that span several weeks or months, then you'll find this interim invoice valuable.
With this type of invoice, you can maintain a healthy cash flow by periodically billing your clients rather than waiting until the project ends.
It details the specific work or parts of the project completed during a particular billing period, often accompanied by a breakdown of the corresponding charges. This provides transparency, helping customers understand exactly what they're paying for. Use the Visme analytics tool to track clients who have viewed or engaged with your invoice.
This timesheet invoice acts as both an invoice and a record of work. It is great for professionals, businesses, or consultants who charge their clients based on the amount of time they've worked on a project or task. With this template, you can meticulously log hours worked, clearly specifying the dates, hours worked, tasks completed and the hourly rate for each service.
Working on the invoice with your team? Visme’s workflow management tool helps you assign sections of the invoice to different team members and manage roles, tasks, progress, deadlines and corrections all in one place
This final invoice is perfectly tailored for businesses that need to provide their clients with a summary of cumulative costs at the end of a project.
It includes spaces for detailed descriptions of all services provided or products delivered, along with their individual costs and sums up all the charges into a grand total. The template also accounts for any previous payments or deposits made during the course of the project, clearly presenting the remaining balance due.
You can download and share your invoice in PDF, JPG, PNG, PPTX and more formats or acquire a shareable link to deliver the invoice to your clients.
This mixed invoice template is designed for businesses that need to combine various charges and credits into a single, comprehensive document. The template offers the flexibility to account for the sale of goods or services and any return or credit notes.
You can find clear sections for itemizing charges, payments and any credits or discounts. This allows for transparency in presenting both what's owed and what's been paid or credited, offering a comprehensive overview of the transaction.
If your business is involved in import and export activities, you'll find this invoice template helpful. The template simplifies the documentation process, ensuring you comply with international trade regulations while presenting your transaction details professionally and accurately.
It includes dedicated sections for all necessary information, such as sender and recipient details, description of goods, quantities, prices and shipment details. It also provides space for any additional charges like shipping, insurance, or taxes, providing a comprehensive view of the total value of the transaction.
Automate your billing cycle and ensure timely payments with this recurring invoice template. This template is designed for businesses with ongoing service agreements or subscription-based models, making it easy to bill your customers at regular intervals.
The template includes sections for all necessary details, including client information, billing period, detailed description of services and payment due. It allows for easy updating of dates and amounts, making it a practical tool for consistent, regular invoicing. You can make your invoice shine by adding animated or 3D icons.
Specifically designed for businesses providing multiple services or goods to a single client over a certain period, this template lets you consolidate all invoices into a single, comprehensive document.
It provides a clear breakdown of each transaction, including the dates, descriptions, quantities, prices and total amounts for every invoice issued during the period. The grand total displayed at the end offers a clear summary of all transactions, facilitating easy tracking and payment for your clients.
Use the invoice template to manage and communicate reductions in the amounts clients owe, whether due to returned goods, errors in previous invoices, or promotional discounts.
The template includes all essential fields, such as client information, a reference to the original invoice, descriptions of the credit reason and the total amount credited. It offers a clear and organized way to present these details, ensuring your clients have a full understanding of their updated balance.
Specifically designed for situations where additional charges need to be billed after the original invoice was issued, this template provides a clear and professional means of communicating these adjustments to your clients.
The debit invoice template includes designated spaces for all important details, such as client information, original invoice reference, description of additional charges and the revised total. It offers a straightforward way to outline the reasons behind the extra charges, ensuring full transparency and maintaining trust with your clients.
Stay on top of your billing cycle with this account statement Invoice template. Designed for businesses that need to provide clients with a summary of their account activity over a specific period, this template helps maintain clear financial communication and enhances customer satisfaction.
The template includes clear sections for client information, billing period, individual invoice details, payment dates and outstanding balances. It's designed to give a concise overview of all transactions, payments, credits and outstanding dues, making it easier for your clients to track their account activity and settle payments on time. On Visme, it’s simple to import data from spreadsheet programs like Microsoft Excel or Google Sheets by either embedding the table or connecting a table to a live data source.
Designed specifically for the fast-paced retail environment, this template makes it easy to provide clear, itemized invoices to your customers upon every purchase.
The template includes designated spaces for customer information, individual items purchased, quantities, unit prices and the total amount due. It calculates taxes and discounts automatically, providing a transparent breakdown of all charges and ensuring a seamless checkout experience for your customers. You can incorporate your company's branding, adjust the color scheme or modify the layout to match your retail store's identity.
Here are two major types of invoice formats:
Digital invoices, also known as electronic invoices or e-invoices, are modern, paperless methods of documenting commercial transactions between buyers and sellers. Unlike physical invoices, which are printed on paper, digital invoices are generated, sent, received and managed using electronic means.
Digital invoices are often created in a standardized digital format, such as PDF or XML and can be transmitted electronically. They contain all the essential information related to a transaction, just like traditional paper-based invoices.
Visme is the best tool for creating and sending digital invoices. Apart from the fact that you can download your invoice in PDF, JPG, PNG and PPTX formats, you can also generate a live link that can be shared digitally with your clients.
A traditional print invoice is a paper-based document that serves as a formal request for payment between a seller and a buyer. Unlike digital invoices, which are created and processed electronically, traditional invoices are printed on paper and sent via mail or handed over in person. Although e-invoicing is slowly taking over, many companies are still relying on traditional print invoices.
Visme allows users to save designs in printable formats (either as PDFs, JPGs, PNGs, and PPTXs), making it easy to distribute documents like invoices, contracts, and receipts.
Beyond creating invoices, Visme’s AI document generator lets you create reports, budgets, plans and other documents in seconds. Describe in detail the document you want to create and the Visme Chatbot will propose suitable styles. Choose the one you like that matches your document’s subject and type and watch the AI create your design.
Here are some guidelines to improve the overall efficiency of your invoices
Ensure that your invoices are carefully crafted with precise and clear information. It is crucial to include essential details such as your company name, address and contact information, along with the buyer's name and address. Also, assign a unique invoice number and indicate the invoice date for easy reference.
Delaying invoicing can result in payment delays. Ensure you establish a clear invoicing cycle and communicate this cycle to your clients. Automate your invoicing process to streamline the generation and delivery of invoices.
When issuing an invoice, clearly specify the payment terms. Include the due date prominently, as well as the accepted payment methods (such as bank transfer, credit card, or online payment platforms). If applicable, provide early payment discounts or late payment penalties. Communicating your expectations regarding payment timelines and consequences encourages prompt payment.
If you’re looking to provide clients with more details about your sales process, you can take advantage of Visme’s AI text generator to produce drafts, proofread your content and more.
The Small Business Majority and GfK conducted a survey that revealed manually generating invoices can result in inaccuracies and lost profits.
Online invoicing is one of the most beneficial innovations to prevent billing discrepancies and losses. Don't wait until you make an irreparable mistake. Look for a solution that helps you manage your time, projects and invoices on the same platform--like Visme.
It is important to have a follow-up system in place for overdue invoices. Many times managers become concerned with other tasks and neglect to follow up on filed consumer bills. However, as the due date for an invoice approaches, it is essential to follow up to ensure timely payment. With Visme analytics and tracking features, you can keep tabs on your invoices to know if the client has viewed them.
You can also easily create and send your follow up invoices on Visme.
A 3-way invoice, or three-way match, is a process that compares three key documents during the accounts payable process to ensure accuracy and prevent errors.
The three documents typically involved in a 3-way invoice are a purchase order (PO), a goods receipt (GR) and an invoice. This is to ensure that the customer's order matches the supplier's delivery, which in turn matches the goods receipt note (GRN).
An invoice category is a classification or grouping system used to categorize invoices based on specific criteria or characteristics. It allows for organizing and managing invoices more efficiently, providing better visibility and analysis of financial data.
An invoice can be sorted according to expenses such as office supplies, professional services, rent, and utilities. These expenses can be grouped together as business expense invoices.
A purchase invoice is a document issued by a seller or supplier to a buyer, providing details of goods or services purchased. Purchase invoices often contain supplier information, buyer information, the invoice number, date and payment terms.
Much like sales orders, purchase invoices serve as legal documents supporting financial transactions and help ensure compliance with governmental regulations regarding financial reporting, auditing and budgeting. The customer equivalent of a purchase invoice is a purchase order.
A payment-type invoice, also referred to as a proforma invoice, provides details about a transaction to buyers. This document contains information about the goods or services being purchased, including their type, quantity, unit price and total cost.
Unlike a regular invoice that seeks payment from the buyer, a proforma invoice does not ask for payment; rather, it outlines the terms and conditions of the sale. It can be used to approximate expenses or secure approval for the purchase before a complete invoice is generated.
A fundamental or basic invoice is a simplified document that contains vital information regarding a commercial transaction between a seller and a buyer, including the essential details for payment processing. The basic invoice enables the buyer to comprehend the amount owed and serves as a payment request from the seller.
Due to its straightforward representation of the transaction, this type of invoice simplifies payment processing and record-keeping.
There are many types of invoices and the number can vary depending on the industry and business needs. However, most businesses use about 10–15 types of invoices, including proforma invoices, commercial invoices, credit invoice, debit invoice, progress invoices and recurring invoices.
Leveraging the right invoice type for your business can enhance efficiency, improve cash flow management and ultimately contribute to the success of your business.
Visme provides a comprehensive solution for creating professional and visually appealing invoices for various business needs. Our software’s unique features and functionalities streamline the invoicing process, enhance communication and contribute to a more efficient financial workflow for your business. Don't just take my word for it, go to Visme and try our invoice maker today!
