The layout that works
An invoice is read in about eight seconds by someone deciding whether to pay it now or later. The layout should make three things obvious immediately: who it is from, how much, and by when.
- Header: your logo, business name, address, contact details, company number and VAT number.
- Document title: 'Tax Invoice' or 'Invoice', with the invoice number, issue date and due date beside it.
- Bill to: the client's name, address and VAT number where applicable.
- Line items: description, quantity, unit price, discount, VAT, line total.
- Totals: subtotal excluding VAT, VAT at 15%, and the total due — the total in the largest type on the page.
- Payment: banking details, reference to use, and an online payment option.
- Footer: your terms, and anything you want on the record.
A worked example
| Description | Qty | Unit price | Line total |
|---|---|---|---|
| Site inspection and report | 1 | R1,200.00 | R1,200.00 |
| Labour — installation | 6 hrs | R450.00 | R2,700.00 |
| Materials (per schedule) | 1 | R3,180.00 | R3,180.00 |
| Amount | |
|---|---|
| Subtotal (excl. VAT) | R7,080.00 |
| VAT @ 15% | R1,062.00 |
| Total due | R8,142.00 |
Where spreadsheet templates fall over
A template is fine for your first few invoices. The trouble starts at volume, and it is always the same list of problems.
- Numbering. Copying last month's file means duplicate numbers, and duplicates are exactly what an auditor looks for.
- No record of what was sent, when, or whether it was opened.
- Payments tracked in a second spreadsheet that disagrees with the first.
- No ageing, so 'who owes me money' takes an hour to answer.
- VAT summaries rebuilt by hand every period.
- A formula overwritten by accident, quietly wrong for three months.
The rough test: if you issue more than about ten invoices a month, or you are VAT registered, the template is now costing you more time than software would.
If you are staying on a template for now
- Keep a separate register of invoice numbers issued, and never reuse one.
- Save each invoice as a PDF the moment you send it, so the copy the client has cannot change.
- Record the date sent and the date paid in the same register.
- Never edit an invoice after it has gone out — issue a credit note and re-invoice.