An invoice format is a structure followed by a business/organization in preparation of a bill of sale to be issued to the buyer for services rendered or products sold. An invoice format separates the invoice into different sections to better present information related to the sale, and provide information necessary to make it a valid legal document.
The components of an invoice format include the date of invoice, details about the seller including contact information, buyer details, goods purchased - quantity, unit price, taxes (if any) and total bill value. The structure of an invoice format can vary from business to business, however, the format is essential when filing for paying taxes and filing for income tax returns. The invoice by itself is proof of the payment demanded by the seller for services rendered or products sold to the buyer.
With respect to the format India GST Act follows; the rules under the act specify the mandatory requirement of the following fields:
Invoice is a commercial document issued by a seller to a buyer. The invoice serves as a demand for payment from the seller. When the buyer accepts and pays the invoice in full, it becomes a legal title to the service or goods purchased. It is a good practice to issue an invoice for any products or services rendered to maintain compliance with the law and develop strong internal controls.
An invoice template is a ready-for-use format that can be generated using online or offline software. The fields that appear in an invoice template is customizable. This means if the business would like to change or modify the details of the information that appears on the invoice or add/remove fields, it can easily do so. Aside from this, the invoice template also allows for easier and quicker input of information.
The format of the template is similar to that of the invoice, however, it provides blanks in next to the field, to be filled in with details related to the sale.
An invoice generator is used by a business/organization in creating invoices quickly and easily for the sale of goods or services. The invoice generator comprises the invoice template along with the invoice format. On the issue of an invoice, the generator prints the logo/letterhead of the business on the invoice along with other details that support the credibility of the business as well as the invoice.
An online invoice generator saves information as entered into the invoice template, the first time. This includes information such as company name, invoice color, number, currency, etc, as well as client information. So the next time a user has to create an invoice, the online invoice generator will auto-fill the template with all the requisite information as entered before.
Online invoice generators help users create online invoices. The advantage here is to be able to download a PDF version of the invoice. This helps in saving time especially when it comes to using an offline tool to generate invoices, such as an excel invoice template, or word. The other advantage is sharing it online via email or online messages. This helps in viewing the invoice on computers or mobiles.
Online invoice generators provide preview options to see what an invoice with details will look like, before actually generating one. Invoice Samples can be used to figure out to choose invoice design, and add fields as per requirement.
Rather than depending on invoice templates, invoice generators provide a library of professionally designed templates that can easily be customized and applied to the company invoice, along with the company logo, trademark, and name.