How To Create a Stripe Invoice – The Step-By-Step Guide
An invoice is a crucial part of billing and getting paid from customers for a product or service. It is handed over from sellers to buyers before or after the goods /services have been offered. Invoices can act as a legally binding agreement showing both the buyer and the seller agreeing to the quoted price for a particular product or service.
A vendor can create an invoice in different languages, depending upon their client location. Invoices provide all the details of purchased products and services reports to understand overdue payments or subscriptions better. The primary functions of invoices are:
1. Legal Record of Sales
2. Legal Record of Purchases
3. Payment Tracking
An invoice can be sent through post or online via emails, chats, or messengers. Every legal business must create and send invoices to their customers, including all the correct purchases, product or service quantities, payment information, or overdue amounts.
Types of Invoices
There are several types of invoices issued based on their purpose. Every business owner needs to know about all the types of invoices, especially the common ones. Here is the list of some of the most commonly used invoices in the world:
• Standard Invoice
• Commercial Invoice
• Recurring Invoice
• Pending Invoice
• Pro-Forma Invoice
• Utility Invoice
• Proposed Invoice
• Debit Invoice
• Credit Invoice
• Miscellaneous Invoice
• Interest Invoice
• Interim Invoice
• Final Invoice
Each type of invoice mentioned above has a specific purpose; you can find more details about invoices here, "Invoice Management: A Starter Guide for Businesses."
Stripe Invoice is a secure and robust invoice processing platform that allows your business to bill customers with invoices or subscriptions. One of the main advantages of using Stripe Invoices is that you can instantly create an account on Stripe, add products or services, and start selling them using the Stripe platform and its gateway and invoice management tool.
Stripe Invoices Features
Once you've created and confirmed your Stripe account, you can create, manage, and send subscriptions and invoices to your customers. Some of the essential features of the Stripe Invoice are:
1. Checkout Experience
2. PCI Compliant
3. Recurring Invoices
4. Global Payments Built-In
5. Online Invoicing & Billing
6. Multiple Payments Options
7. SSL HTTPS Security
8. Invoice Reports
10. Invoice Templates
Now that you've got an idea about Stripe Invoice, let's move on to this article's main topic.
How to Create a Stripe Invoice
Create an invoice on Stripe is straightforward and takes little to no-time. Invoices are essential for subscription-based businesses, and for businesses that are not subscription-based, they can commonly use one-off invoices. To create an invoice on Stripe:
Step 1: Sign in to your Stripe account.
Step 2: Create an Invoice.
Step 3: Verify your customer's name, email, and payment details.
Step 4: Select + Add New Customer.
Step 5: Fill out all the necessary details of your customer that is required, such as name, email account, and the description.
Step 6: Click Add Customer.
Step 7: Enter the product or service description and price.
Step 8: Confirm the email in the Send to the field and then click on the Send Invoice option.
You've successfully created and sent your invoice to your customer. You can duplicate the invoice by clicking on View your invoice option and click the *** button for the invoice that you want to copy or make a duplicate.
Receiving payments for one-off invoices is done through an email that you need to send to your customers. The email contains a link to a payment page hosted by Stripe, where consumers can enter their payment information. You can also collect subscription invoices payment automatically using Stripe Invoices.
Items that you need to include in your Stripe Invoice
An invoice not only helps business owners get paid from their customers but also helps in financial audits and standard tax compliance requirements. However, you must know what items you need to include before sending an invoice to your customers for collecting payments. We’ve made a list of things that you must include on all your invoices. You can find the details below.
1. Company Information: This includes all the details of your company/business/agency such as Company name, address, contact details, trading number, logo, etc.
2. Customer Information: This includes customer name (company, if applicable), customer's address, phone number, email address, and last four digits of their credit or debit card if they need an invoice for subscription payments.
3. Invoice Number: This acts as a Unique Identification Number. Most invoice management software such as Stripe automatically generates invoice number, so you don't have to create one for your invoice if you are using Stripe Invoices.
4. Invoice Date: This includes the invoicing date and the date when the products or services were provided.
5. Products or Services Description: This consists of the details of products or services purchased by your customers, such as product or service name, unique number, etc. Make sure you've got the product or service details right before sending it to your customers.
6. Quantity: This includes the total number of products or services purchased. Make sure you've got the product or service details right before sending it to your customers.
7. Unit Price: This includes the individual cost per product or service in weight (For products) or a volume (For services).
8. Total Amount: This consists of the total amount of overdue payments for all the products or services and must be the final amount of the invoice. This is another essential item in the invoice so make sure you’ve got the product or service details right before sending it to your customers.
9. Payment Terms: This includes different payment methods and other essential payment details, such as offers or discounts that you can offer to your customers.
10. Shipping Terms: This includes shipping information and details such as physical product delivery and whether you (the seller) or your customer pays for the shipping charges.
Try Payvoice (Free Trial)
Payvoice is a Stripe Invoicing tool that helps subscription and small businesses create, send, and track customized invoices from Stripe Billing for payments, recurring invoices, and auto-billing. Send professional invoices to your clients and get paid fast in seconds.