In this article, we will explore exactly what manual invoice is and some of its benefits. Read on to learn more.
A manual invoice is a handwritten or manually created bill used to request payment from a customer. It's often made without using software, relying on templates or simple formats like paper or spreadsheets.
Example: A bakery sells 50 boxes of "Sweet Bliss" cupcakes, each priced at $15, and writes a manual invoice listing the product name, quantity, price per box, and total amount due. The invoice is handwritten on a pre-printed template and given to the customer as a payment request.
Here are some of the benefits of using a manual invoice:
Manual invoices save businesses money by eliminating the need for expensive billing software or automated systems. Small businesses can use simple tools like pre-printed templates or notebooks.
Businesses can quickly tailor manual invoices to specific needs, such as adding notes or special instructions. This flexibility is harder to achieve with rigid software templates.
For businesses with few transactions, manual invoices are straightforward and efficient. There’s no need to invest in complex systems for occasional billing.
Handwritten invoices can make customers feel valued and appreciated. This personal touch may strengthen customer relationships, especially for small businesses.
Use our 10-step manual invoicing process to efficiently manage your invoices.
Write down the customer's name, contact details, and address. This ensures the invoice is personalized and sent to the right person or business.
Example: Write "John Doe, 123 Main Street, Springfield, (555) 678-9100" at the top of the invoice for an order of furniture.
Detail the items or services being sold, including their names, descriptions, and quantities. Be clear and specific to avoid confusion.
Example: List "5 units of GalaxyTech Bluetooth Speakers, Model GX-5000" for a tech retailer's customer order.
Write the price for each product or service, clearly indicating unit costs. This helps the customer understand the total breakdown.
Example: Write "$20 per unit for 8 packs of 'GlowBright' LED Bulbs, totaling $160."
Add the individual prices to get the subtotal. Ensure no discounts or taxes are included yet.
Example: Add $100 for "5 packs of HerbalTea Leaves" and $50 for "3 packs of Spiced Chai Mix" to get a subtotal of $150.
If applicable, subtract any discounts from the subtotal. Clearly state the discount amount or percentage.
Example: Subtract a 10% discount ($10) from the $100 subtotal for a "Luxe Travel Bag" order.
Calculate applicable taxes based on local regulations and add them to the subtotal. Be sure to mention the tax rate.
Example: Add a 7% tax ($14) to the $200 subtotal for "SolarMax Portable Chargers."
Sum up the subtotal, discounts, and taxes to get the final total. Ensure this amount is clear and bold for the customer.
Example: Add the $500 subtotal, subtract a $50 discount, and add $35 in taxes to get a total of $485 for "AquaFlow Filters."
Mention how and when the customer should pay, including payment methods. This sets clear expectations for both parties.
Example: Write "Payment due within 7 days via cash or bank transfer to account #12345678 for an order of 'FlexOffice Desks.'"
Sign the invoice to authenticate it, and deliver it to the customer by hand, email, or post. This finalizes the billing process.
Example: Sign and hand-deliver the invoice for "PureBrew Coffee Machines" during the customer’s store pickup.
Retain a copy of the invoice for your records, either as a paper copy or digital scan. This ensures you can reference it later if needed.
Example: Save a scanned copy of the manual invoice for "EcoClean Detergents" in a folder labeled "June Orders."
.png)
GreenLeaf Organics, a small business selling organic produce and natural products, wants a simple, cost-effective way to manage billing. Here's how they implemented our manual invoice process..
For every order, GreenLeaf Organics starts by noting down the customer’s name and contact information at the top of the invoice. This helps them deliver the right orders and follow up if needed.
For a customer purchasing fresh produce, GreenLeaf writes “Emily Carter, 45 Oakwood Lane, Greenridge, (555) 234-5678” on the invoice.
GreenLeaf itemizes each product, noting the type, weight, and quantity purchased to provide clarity. They ensure everything matches the customer’s order.
GreenLeaf lists "3 lbs of Organic Kale - $3/lb, 2 jars of Raw Honey - $12 each" on Emily’s invoice.
They calculate the price for each product by multiplying the unit price by the quantity purchased. These amounts are then written next to the product names.
For the kale, GreenLeaf writes $9, and for the honey, $24, totaling $33 so far.
The team calculates the total before applying taxes or discounts. This ensures the customer can see the clear sum of their purchases.
GreenLeaf adds $9 (kale) and $24 (honey) for a subtotal of $33.
GreenLeaf offers discounts to loyalty members and subtracts these directly from the subtotal. They write this clearly on the invoice.
Since Emily is a loyalty member, she receives a $5 discount, reducing the subtotal to $28.
GreenLeaf calculates and adds sales tax based on local regulations, ensuring compliance. They clearly display the tax rate and amount.
At a 6% sales tax rate, GreenLeaf adds $1.68 to Emily’s subtotal, making it $29.68.
The final amount due is prominently displayed so the customer knows exactly what to pay. This amount includes all adjustments.
GreenLeaf highlights the total payment due as $29.68 at the bottom of the invoice.
They specify how the customer can pay and any deadlines for payment. This avoids confusion and ensures timely payments.
GreenLeaf writes, “Please pay via cash or Venmo to @GreenLeafOrganics within 3 days.”
The invoice is handed to the customer along with their items or sent via email for delivery orders. GreenLeaf keeps a copy for their records.
Emily receives her invoice in the bag with her kale and honey, while GreenLeaf saves a copy in their “Emily Carter Orders” folder.
GreenLeaf saves a scanned copy of Emily’s invoice in their “Invoices” folder for easy retrieval.
We hope you now have a better understanding of how manual invoices work and its benefits. If you enjoyed this article, you might also like our article on invoice verification process or our article on sales order vs. invoice.