How To Create Invoices & Estimates For Business In Nigeria

Invoicing and creating estimates are very important to any business. The challenge is that most business owners have no idea about how to handle both tasks.

Once upon a time, you needed to sit down and handle both tasks manually. The good news today is that there are several invoicing apps like Letushostyou that can help you out. In this post, we will discuss how Nigerian businesses can create invoices and estimates easily.

Defining Invoice

Before we go ahead, it is important that we properly explain what an invoice is. Many business owners mix up the meanings for invoices and other business documents. If you have been in these shoes, don’t worry, we’ll clear the air in this section.

An invoice is a document that a business issues to a client to indicate a specific transaction and request payment. The payment could be for goods sold or services delivered. It is no secret that invoices make running businesses a lot easier. With these simple documents, you can enjoy timely payments and track revenue.

Invoicing also helps you to maintain trusting long-term relationships with clients. Let’s show you what your invoice should contain in the next section.

Contents of an invoice

Business name

How would we trace the invoice back to your business without your business name? That’s how important your business name is to this document. You should add your logo for a more professional touch. Letushostyou allows you to do this easily.

Invoice number

Adding numbers to each invoice makes it easier to track revenue during the tax season. We advise that you make use of unique sequential numbers on your invoices for easier tracking.

Contact information

When you send out an invoice, it is expected that the recipient reaches you. Without your contact information, this is impossible. Ensure that you add your contact information to your invoice.

Bill to contact

This refers to the client to who the invoice is directed. It also carries the contact information of such businesses or individuals.

Payment terms

Small businesses make use of a variety of payment terms. The most common is “Net30” and it refers to invoices that are due within 30 days after the first issue. It is important to account for some extra time since some businesses don’t make payment at exactly 30 days.

Due date

The due date is the addition of the invoice date and the payment term date. You must write this in easy-to-understand English for clarification purposes. Adding a due date to your invoice shows that you are professional about telling the client when to make payment. This acts as a professional reminder to the parties involved.

Service or Product details

Invoicing and estimates require that you state the services or products involved. In this section, you will be doing just that. State the description of the product, the quantity, the rate, the amount or cost, and the subtotal. You must provide as many details as possible. This will inform the client about each item that they are paying for.

Discount

If there is any discount on the products or services offered, ensure that you include it in the invoice. Some businesses prefer to state this as an actual figure while others make use of percentages. Whichever you choose, ensure that it is clearly stated.

Sales tax

This depends on your business and the jurisdiction within which you operate. It is imperative to note that tax requirements vary based on the location and the business structure. Ensure that you include the sales tax amount in the invoice. An invoicing app like Letushostyou can help you do this easily.

Notes

This is the final content of your invoice. It is necessary to leave the client with a good impression of your business. Adding a note will also contribute to quicker payments of your invoices. Don’t forget to include warranty information and payment instructions as well.

Explaining Estimates

In rounding up this post, we will like to explain “estimates.” Estimates are quite similar to invoices. The only difference is that they are for proposed sales or services. Estimates show how much it will cost for a customer to buy a product or patronize your service.

Conclusion

Invoicing and estimates are closely related. You can convert one to the other based on the requirement at that point in time. The contents of both documents are similar and you can create both using Letushostyou products.