This invoice template (word) can be used to help your company create a sales invoice to record your company's transactions. Use CFI's invoice template (word) and modify it to fit your company's own needs. This template is also available in the form of an Excel invoice template. An invoice is a formal document for detailing the terms and conditions of a transaction. Companies send invoices to clients to inform them that they need to pay for a good or service. Since an invoice is a formal document, it is legally enforceable. Since an invoice is a legally enforceable document, there are many details that need to be included. An invoice is used to show the terms and conditions of a transaction. This document is then sent to customers to let them know they need to pay for a good or service.

Dissecting the Invoice

There are many parts of an invoice that need to be included. These can be seen in CFI's invoice template (word). These elements are shown below:

• invoice or reference number
• creation or issue date for the invoice
• payment due date
• seller/vendor contact information and company address
• buyer contact information and billing address
• buyer contact information and shipping address (if shipping goods)
• description of the purchased items and services
• number of units, price per unit, and total cost of all the goods or services purchased
• total price of the entire order, including a breakdown of any discounts or taxes
• payment terms for the order, including method of payment, banking information, due date, and discounts if there is an early payment

As mentioned, a shipping address is not always necessary. This happens when the goods or services being purchased do not need to be shipped anywhere. While CFI's invoice template (word) includes a shipping address section, this can be modified to fit your company. For example, a company that sells services will probably not need to include a shipping address section. This CFI invoice template (word) has a comments section to include payment terms for the invoice. Payment terms are expressed as 'net 30' or '3/10, net 30'. This translates to 'payment is due in 30 days' or '3% discount if the payment is made in 10 days, otherwise, the payment is due in 30 days'. If you are looking for more tools that startups can use, check out some of CFI's other startup templates. Learn more about valuation and financial modeling for startups with CFI's Startup and Ecommerce course!