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What is an invoice?

An invoice is a statement delivered to a buyer to tell them what they owe for a good or service. It contains all the necessary information relating to a purchase, such as the seller's and buyer's information, products purchased and their prices, the payment due date, and other relevant information. Maintaining invoices helps businesses stay transparent with their customers about their pricing and payment expectations. It not only helps them track income but also comes in handy when filing taxes.

How to create an invoice using an invoice generator

Creating professional invoices with a free invoice generator is now easy. Follow these steps to create an invoice that aligns with your brand identity.

How to make an invoice | Zoho Invoice Generator
Step 1

Select the color theme and invoice format (Standard, Spreadsheet, or Compact) in which you wish to display your invoice. Once done, upload your business logo so your invoices reflect your brand's image.

Step 2

Fill out the essential details like your business name, business address, customer contact information, invoice number, invoice date, and the payment due date.

Step 3

Enter the details of the sale items in the Item description table, and the invoice generator will automatically calculate the rates as you input the item quantities. You can also provide additional notes and terms and conditions in the Notes and Terms and Conditions section.

Step 4

After entering all the necessary details, click Download/Print to download or print the document, or click Save Online to save and access the invoice later from anywhere using Zoho Invoice.

Invoice format

A usual business invoice contains the following components:

sample invoice format | Zoho Invoice

The business's logo, name, and address; and the customer's contact information.

The invoice number, invoice date, and the due date

The item names, descriptions, quantities, and rates.

The subtotal, taxes, and total amount that needs to be paid.

The notes and terms and conditions section.

Business Information

The business's logo, name, and address; and the customer's contact information.

Business logo | Zoho Invoice

Invoice Details

The invoice number, invoice date, and the due date

Business logo | Zoho Invoice

Itemized List

The item names, descriptions, quantities, and rates.

Business logo | Zoho Invoice

Payment Summary

The subtotal, taxes, and total amount that needs to be paid.

Payment summary | Zoho Invoice

Notes and Terms

The notes and terms and conditions section.

Terms and conditions | Zoho Invoice

What elements should an invoice include?

Business logo | Zoho Invoice

Business logo

A business logo is a unique symbol that represents an organization. Adding a business logo to your invoices not only reinforces your brand's identity among your customers but also projects your business as a legitimate one.

Invoice number | Zoho Invoice

Invoice number

Businesses might send out huge volumes of invoices. In such cases, tracking each invoice becomes a tedious task. This is where an invoice number comes in handy. An Invoice number is a sequential number that uniquely identifies each invoice. Sequentially numbering each invoice helps businesses track a specific transaction.

Business name | Zoho Invoice

Business name

This is the name that your organization goes by. Having your business name and address on your invoice not only makes it easy for your customers to communicate with you but also reassures them that they are dealing with a credible business.

Product description | Zoho Invoice

Product description

A product description is a compelling marketing copy that showcases all the information of the product. This may include details like the product's size, dimensions, color, and other information. Describing the product in your invoices gives your customers a clear idea of what they are buying.

Invoice date | Zoho Invoice

Invoice date

The invoice date is the date in which an invoice is issued. Apart from this, an invoice also contains the payment due date, which is the date by which a customer should pay the invoice.

Terms and conditions | Zoho Invoice

Terms and conditions

Terms and conditions are a set of rules that both the buyer and seller should abide by. These rules might define the payment terms, late fees, or explain the return and refund policies for goods or services.

Frequently Asked Questions

  • The different types of invoices are:


    Proforma invoices: A document that states the commitment of the seller to deliver goods and services to the buyer for an agreed price.


    Commercial invoice: A document used for customs in the sale of goods that exported across the international borders.


    Credit notes: A document issued to the buyer in case of goods retuned due to damage or any mistakes made.


    Timesheet invoice: Invoice created for work done on hourly basis.


    Recurring Invoices: Invoices created and send to customers on a regular interval.

Streamline your invoicing operations with Zoho Invoice

Creating and sending professional invoices is now quicker and easier with Zoho Invoice. Sign up to generate quotes, automate payment reminders, manage projects, and much more—all for free.

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Free invoicing software - Zoho Invoice