Create Your Trade Invoice Template for Businesses Seamlessly

Trade invoice template for businesses

hello everyone today we will be talking about invoices now what we plan to cover in today's session includes the following so we'll understand what is an invoice the importance of sales invoice sales invoice versus bill elements of an invoice and the various types of invoices so let's start with understanding what is an invoice now by definition a sales invoice is an accounting document that serves as a record of sales and inform the client about the amount of money that they owe to your business for the products or services that you provided to them right now it basically serves as a proof of debt and establishes an obligation on the part of the customer to pay your business back it is also a legal document so the invoice can be provided as a legal document as proof of the fact that services or products were offered by a company or your organization to the customer now sales invoices are issued every time you want to request payment right when the product or the service gets delivered let's move on now what is the importance of a sales invoice now firstly and most importantly it helps in accurate bookkeeping now a sales invoice is recorded as a journal entry on the company books so the businesses can monitor the cash flow and create the financial statements that are required at the end of the year secondly it serves as a legal proof for the agreement now to avoid any legal issues or petty lawsuits a sales invoice serves the purpose of a legal transaction that has taken place between two parties the third usage and very important is for filing taxes now invoices are created so that at the end of the month or the quarter or the end of the year appropriate tax return forms can be filed by the organization the next again very important is inventory tracking now if your business sells physical products let's say you are into trading sales invoices help you keep track of how much inventory you have and how much you're selling you can use this information to forecast the number of inventors that you need to keep or you can keep analytics of various parameters like which brand is selling the most which category is selling the most so invoices help you reach to these analytical statements next let's try to understand the differences between sales invoices and bills now these terms are used interchangeably now it is important to understand that invoices are issued to customers so invoice is basically a medium of collecting cash for the product or services that the business has provided whereas the bill is used by the buyer to express how much money they owe a vendor or how much money do they need to pay to the vendor next let's try to understand the important elements of an invoice the first and the most important is the term invoice now this needs to be included to categorize the kind of invoice that you are sending to the customer so this can be either a tax invoice or sales invoice depending on the compliance then we need the business contact details right now business details includes the business name or you can call the registered name the email id the billing address again this has to be the registered address plus you can also add the business logo there are other important elements also that can be the tax registration number or company registration number or any other statutory detail that is required to be printed next is customer contact details so you require the same set of details for the customers like the customer name their address the email the phone number their tax registration number right so depending on the statutory compliance you will need to enter or furnish the registration details for the customer as well then we need to have the due date and the billing date so it is important that when was the invoice generated and when is it due invoice number is a unique sequential code that is used to differentiate between the multiple invoices that are being generated again this invoice number is very very critical in terms of generating financial reports and the statutory reports the next thing that is important is an itemized list of products and services right now we need to specify uniquely what is the exact product and their respective codes now every compliance may want you to identify each product or service that you are selling with a unique code so you may need to mention that along with their respective unit price the total amount owed and the tax rates so these three are very very important along with the products and services and finally the payment that is when is an invoice due and what were the exact payment terms let's understand the type of invoices first is the standard invoices these are as mandated by the statutory rules so this can be just a tax invoice or a bill of supply or you can call it a sales invoice so these are standard invoices that are issued next is the pro forma invoice now pro forma invoice is not actually a financial document it is issued before goods and services have been delivered or finished the goal of this isn't to request payment but rather let the customer know how much they will have to pay once everything is done so it basically informs the customer about the details of every single service or product that you're gonna offer to the customer what is the quantity what is the unit price what is the tax and what is the total amount so this is basically an information before the actual sales actually happens next is the recurring invoices now sales invoices with the same details that are repeated at regular periods of time are known as recurring invoices these include transactions as membership subscription or any other recurring activity that takes place between you and your customers now let's understand how can descript help us with all these now deskera supports all types of invoices you can create proforma invoices you can create quotations you can create tax invoices secondly we have the option wherein you can create multiple invoice templates now when we discuss the various elements that are needed for an invoice all of them are covered plus in addition to that if you want to add any other details with the invoice template you can design them plus you can design multiple such templates so you may need to design a specific template for export and you may need to have a specific template when selling within the same country then we have multiple invoice sequences so the invoice number which is a very very crucial aspect because it is what recognizes an invoice uniquely from the other invoice plus it is also used in tax returns so you can have multiple invoice sequences as per your requirement automated tax calculation very very important because it eases the burden of calculating or doing things manually so depending on the rule of the land you can automate the taxes that need to be calculated depending on the customer that is selected the place where you are billing the tax rate of the product or the service that is being included lastly it is very easy to share you can generate invoices quickly you can email them directly you can share them using the mobile app either over whatsapp or any other application so this way desktra makes the task of invoicing very easy for the end customer