Simple Invoice Template for a Canadian Small Business
If all you need is a simple invoice, this free invoice template designed for a small business selling products should fit the bill. This invoice template is for small businesses that do not have to charge federal taxes in Canada (Small Suppliers, who by definition, don't have to charge GST (Goods and Services Tax) or HST (Harmonized Sales Tax) and do not do business in a province where they would have to charge Provincial Sales Tax (PST).
Feel free to use this free invoice template as a model for your own simple invoices. If you like, you can copy it into MS Word or Excel some other word processor or spreadsheet, and substitute your relevant data, using your own customized business letterhead, and format the invoice template as you desire.
What Has to Be on the Invoice
There are certain pieces of information that should always be on the invoice, including:
- Your business name and address
- The invoice number, for you and your customer's accounting records
- The date of the invoice
- The purchaser's name and address (if required)
- A brief description of the goods or services performed
- The total amount paid or payable
- The terms of payment
- The return policy, if applicable
|From: Seastream Skin Care||Invoice Number:||________________|
|Suite 7, 140 Atlantis Drive||Invoice Date:||mm/dd/yyyy|
|Orillia, Ontario L3V 0A8|
|To: Ms. Alana Pendergast|
|7890 Fallinghawk Way|
|Mississauga, Ontario, L4Z 2H7|
|Sea Kelp Super Rejuvenating Night Cream||$82.00||1||$82.00|
|Wet Glow Wrinkle Reducing Eye Treatment||$43.00||2||$86.00|
|Payment Terms: To be paid within 30 days of Invoice Date|
Note that this invoice template does not include a Business Number (sometimes called the GST Registration Number) because I've assumed that a small business that was not a GST/HST registrant wouldn't have a business number.
If your small business does have a business number, you would put it on your invoice, of course.
Also note the statement at the bottom of the invoice, saying that the invoice amount is due within 30 days. You'll often see invoices that say, "Payable Upon Receipt", but that's just asking for trouble because you don't necessarily know when your customer or client is seeing the invoice if you’ve sent it out. Using a specific terms statement like the one on this invoice gives your customer a due date, and helps you to avoid collection problems. For more on how to get paid more quickly, see Close the Cash Flow Gap.
If you are selling returnable products it is a good idea to specify the return policy on the invoice. The return policy should specify:
- whether or not an invoice must accompany returns
- whether the product can be refunded and/or exchanged
- any conditions that apply to damaged or defective goods
- the time limit for returns, for example, "items can be returned within 30 days from the date of purchase"
Accounting Software Makes Invoicing Easier
Invoices are even easier to do if you use accounting software. Accounting software designed for small businesses can not only be used as POS (Point of Sale) systems and print out invoices on the spot but make it easier to calculate and keep track of taxes, such as the GST/HST.
Accounting software packages allow you to easily customize your invoices with your own logo, and many have features such as auto-billing so you can create recurring invoices and/or automatically bill your client's credit card. Some also allow billing in multiple currencies, so you don't have to worry about computing exchange rates between currencies.