Learning how to invoice is one of the thing online workers NEED to know if they want to get their salaries. But before we get into how to invoice, let’s make things clear to everyone what an invoice really is.
According to the Collins English Dictionary an invoice is a document that lists down the goods and services that have been supplied. It also says how much money needs to be paid for these goods or services.
An invoice is completely different from a receipt. A receipt is proof or acknowledgement that goods/services or payment has been received. Once you receive your payment, you send your client a receipt as proof that you have received the money. So ideally, each invoice should have a matching receipt.
When it comes to computing for taxes, what an accountant or bookkeeper would need mainly are your receipts, not the invoices. That’s because the invoices mainly serve as reminders while receipts mainly serve as proof of payment received.
There’s really no standard template or form for invoicing. In most cases, a simple email reminder would do. But if you want to keep track of payments, you can use a Word template: https://templates.office.com/en-US/Basic-invoice-TM00000042 . You can also use Google Docsor any invoicing software/app to send an invoice to your client.
So does a basic invoice contain? In most cases all you would need is:
- Your name
- Description of the goods or services your provided and their duration
- The amount is owed to you
- When and how the invoice should be paid.
So for online workers, an invoice is usually given to clients AFTER a service has been provided. It serves as a reminder that the work has been done and has to be paid.
OR to make things even easier, you can use the invoicing function within your Onlinejobs.ph. This would allow you to keep track payments and receipts all from one site.
Register for an Onlinejobs.ph account. Once you have an account, just login to your profile. Once your in your profile, you should see this on your profile page:
Once you click on the “Create An Invoice” tab, it will take you to your invoice page. It shows the record of the invoices you have sent, who you sent them to, how they will pay you, and how much you’re expecting. The status is set to “pending”. You can set this to ‘paid’ once the invoice is paid.
To create a new invoice, you just click on “Create New Invoice”.
Once you click in it, it will take you to a new page. You can create your new invoice here simply by putting in all the details needed.
When you are done, you can send the invoice directly or download it as a PDF so you can send it email it yourself. You can also save the information in the invoice as a template to help save time when you want to create more invoices in the future.
Invoicing Best Practices
- Be detailed in listing what products or services your employer/client is paying for. If you are being paid by the hour, indicate how many hours you have worked and how much your salary is per hour.
- Have a regular schedule for sending your invoices. If you send your invoice the same day every month or week, it would make it easier for employer to prepare your salary early.
- Give your client a reasonable deadline to pay your invoice. Most business owners pay their invoices right away. But some businesses it might take longer because they have to clear their expenses through their accountants/bookkeepers. And depending on the payment system, bank holidays could delay processing.