TL;DR Creating an invoice in Word is a common approach among many small businesses. The user can either create an invoice in Word manually or use the template available in Microsoft Word. However, certain capabilities—such as automation, recurring tasks, and reporting—are lacking in MS Word.Microsoft Word is widely used in business for various purposes, including invoice creation. It offers a simple, effective way to generate invoices. This kind of simple approach is often beneficial for small businesses. You can effortlessly create an invoice either by using a Microsoft Word invoice template. Alternatively, you can also choose a manual approach to designing an invoice. Both methods are effective for generating invoices and ensuring on-time payment. However, the choice of method depends on your needs and approach. The manual approach lets you build the desired structure, but a template is a time-saver and enables quicker invoicing. If you want to understand both methods, then read this blog thoroughly. Additionally, we’ll outline the advantages & disadvantages when you create an invoice in Word.
📌 Key Takeaways
- Microsoft Word is a good option if you want a simple way to create an invoice.
- The invoice template in Word lacks automation and tax calculations.
- Using invoice software saves time, reduces errors, and speeds up the process.
- MS Word offers customizable templates, but users can also create invoices manually.
- A proper invoice should include the invoice details, issuer, customer, line items, and payment terms.
How to Create an Invoice in Word from Scratch? Step-by-Step Process
It is a manual method for creating an invoice from scratch. If you enjoy showing your creativity, this method works. However, it requires time and significant effort. Here are the key steps you need to follow when thinking over how to create an invoice in Word:
1. Open a New Blank Document
Initiate your invoice-making journey by opening a new blank document while following the steps below:
- Open Word
- Click ‘File’
- Choose ‘New Document’
- A blank document will be visible on your screen.
This document lets you include details. However, you need to create a proper layout and basic design & structure for a professional look.
2. Creating an Invoice Header
Next, create the invoice header, which is the top section that your client will look at. When you create an invoice in Word, ensure it is visually appealing. Ensure it has a professional look and high clarity. Include your business name, logo, address, contact number, and email address.
3. Including Invoice Details
The other important information you need to include is the invoice number, currency, invoice date, and due date. You can also mention the PO number if required. The invoice number is unique to each invoice and is useful for tracking it.
4. Include Client Details
To whom you are issuing an invoice, you need to include. This is one of the important invoice elements. Mention the client’s name, address, and contact number. You can also use a prefix like “Invoice to” or “Billed to.” This enhances the viewer’s clarity & understanding.
5. Generate an Itemized List
Create an itemized list that includes a description of the delivered services and products to your client. Make sure you present the details in a list format, including a proper cost breakdown for each service or product, with quantities. A sample below explains it well:
| Product | Quantity | Unit Price | Amount |
|---|---|---|---|
| SubTotal | |||
| Total | |||
In addition to those, you can mention any applicable tax or discount if necessary. A proper itemized list enhances clarity and improves understanding, reducing confusion and disputes.
6. Terms & Conditions
Showcase all your terms and conditions to enhance transparency. Make your client aware of your business or billing policies. Include the payment terms Net 15, Net 30, or whatever, the mode of payment you accept, and other related terms.
7. Save & Export the Invoice as a PDF
Save the ready invoice as a PDF. Saving your invoice as a PDF is beneficial because it makes the file easy to access on any device or program. Follow the steps below to save & export the invoice:
- Go to File->Save As.
- Choose the location where you want to save the file.
- Give your file a unique name, then click Save as a standard Word Document (.docx).
- To export to PDF, change the “Save as type” to PDF.
Apart from this approach, you can also easily create an invoice through the template provided by Word itself. These templates offer built-in fields that let you prepare the professional invoice quickly by filling in the information.
How to Create an Invoice Template in Word Using Moon Invoice?
You can simply create an invoice using the invoice template in Word of Moon Invoice. The platform offers more than 66 free, professionally designed invoice templates. All you need to do is download the right template, fill in the details, and save or send it to the client. Here are the detailed steps to follow:
1. Download the Template
Take a journey through our invoice templates gallery. You’ll get a wide variety of designs and formats. The platform offers a simple, blank, modern look, along with many other formats. Choose the option that best suits your business & download the free Word invoice template easily.
2. Customized & Fill in the Details
Customize the template to your needs to create the best invoice. Set the design and color to match your brand. Once you’re done, fill in the following details:
- Invoice number
- Invoice date
- Currency
- Due date
- The name of your business, its logo, address, contact number, and email address
- Your client’s name, billing address, shipping address, contact number, and email address
- Line item details with quantity, unit price, amount, subtotal, and total payable amount
- Invoice terms as per the business needs
- Signature (after taking printout)
3. Save Invoice
Always save your invoice once it is ready. With our invoice template, you can simply save the invoice as follows:
- Click the Save option
- Give the file name
- Choose the location
- Select the Save As type
- Hit the Save button
Moon Invoice software itself is a cloud-based platform. This keeps your team collaborating on a single platform. Additionally, you can save invoices & other documents in a single platform. It also enhances the security of all important documents. You can even edit your saved invoice at any time.
4. Sending to the Client
After completing the invoice, email it to your client with the document attached. With Moon Invoice software, you can even share the invoice via WhatsApp or email with a few clicks. This saves time and boosts productivity.
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Creating an Invoice in Word: Advantages and Disadvantages
You can experience some benefits when you make an invoice in Word. It is an ideal approach for freelancers, entrepreneurs, and small-business leaders to create invoices. In addition, the following are the key advantages they experience.
- Offers customizable templates
- It eliminates the need for dependency on a third-party tool.
- Works offline, reducing internet dependence
- Very simple to edit and reusable
- Easy to save and share in PDF format
In addition to the advantages, you may also face the following disadvantages.
- High risk of errors if you follow the manual approach
- Lacks automation and advanced features to manage invoices
- Reporting and insights are not available
- Templates are limited in design options
- Integration is limited
- Limited customization options
How to Manage an Invoice Effectively? Key Tips to Follow
So far, we have understood how to create an invoice in Word. In addition, you must be able to manage invoices effectively.
Manage Invoices in Centralized Form
Always store and manage all your invoices in one central location. This gives a systematic approach to managing the completed invoices. It also simplifies tracking by providing a single centralized location to access the required details. This saves time and accelerates the work.
Review Before Sending
When you make an invoice in Word, cross-checking it before sending is crucial and beneficial. This approach helps eliminate the risk of errors. One should always verify the invoice details before final dispatch. It also impacts the payment process.
Never Underestimate Invoice Number
Ensure every invoice has a unique number. Maintaining uniqueness is crucial because it enables accurate invoice tracking. It is easy to track the invoice using the invoice number.
Use Invoicing Software
Invoicing softwares like Moon Invoice offers great advantages. From creating professional invoices to systematic invoice management, you can get all things in one place. You can easily simplify your task with all the advanced features.
Looking for a Better Alternative? Try Moon Invoicing Software
Moon Invoice, a globally renowned invoicing software provider serving 1.7 million customers, offers a bespoke invoicing solution.
Choose from 66+ customizable, free invoice templates to streamline your invoicing process. Beyond Word, the platform provides invoice templates in Excel, Sheets, Docs, and PDF. When you’re thinking over how to create an invoice template, this tool is the right partner.
Our Word invoice template features a professional layout, producing a clean invoice that makes a strong impression. Hence, it is easy to create professional invoices. Additionally, the software enables you to set up recurring invoices.
Features that make for better invoicing
- An AI-powered tool supporting quick scanning of documents
- Auto-calculation ensures 100% accuracy
- WhatsApp and email sharing of invoices
- Supports 100+ global currencies
- Multi-lingual platform
- 20+ payment integrations to enhance client payments
- 15+ comprehensive reports
- Digital signature
- PDF and print settings
- Printer-friendly templates
- Activity log to track every performed action
- Document attachment section
Overall, Moon Invoice streamlines the invoicing process for businesses of any size. Whether you are a consultant, designer, contractor, or another type of professional, this software is suitable for you.
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Closing Statements
When you create an invoice in Word, you’re no doubt leveraging a simple & cost-effective solution. However, as your business grows, you need a dedicated & scalable solution to elevate your invoicing process. It’s because relying solely on Microsoft Word for invoice creation prevents you from accessing advanced features. However, choosing the right invoicing software is the best way to address this issue.
FAQs
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Jayanti Katariya is the founder & CEO of Moon Invoice, with over a decade of experience in developing SaaS products and the fintech industry. He holds a degree in engineering. Since 2011, Jayanti's expertise has helped thousands of businesses, from small startups to large enterprises, streamline invoicing, estimation, and accounting operations. His vision is to deliver top-tier financial solutions globally, ensuring efficient financial management for all business owners.
