How to Make an Invoice in Google Sheets?

Are you looking for a simple invoicing solution that saves you time and organizes your billing process?

Google Sheets are for you. The customizable templates, built-in formulas, and easy-to-use interface enable you to create professional invoices without spending a fortune on expensive invoicing tools.

Both freelancers and small business owners can use Google Sheets to make invoices and streamline their entire billing process. But, making an invoice in Google Sheets requires you to follow some important steps.

In this blog, we will showcase how to make an invoice in Google Sheets. This will help you to stay organized and manage your finances effortlessly.

A Step-by-Step Guide to Creating an Invoice in Google Sheets

Here is your step-by-step guide to creating free invoice templates using Google Sheets.

No matter if you’re a freelancer or a small business owner, this guide will help you create professional invoices to meet your specific business needs.

Follow these 10 important steps to make an invoice in Google Sheets:

Step 1: Open Google Sheets

Start with opening the Google Sheets and login to your Google account. In case, you don’t have an account, create a new one.

Step 2: Create a new blank spreadsheet

After logging in, go to the blank spreadsheet option and create a new one. You will come across an empty sheet to create your invoice template in Google.

Step 3: Set up your column headers

Ensure to add important information like your company details, billing contact, and address.

Here is the way to set it up properly:

• Merge cells: Click and drag the cells from A1 to H1. Go to the toolbar and click on the merge cells option.

• Add important information: Add your organization’s name in the merged cells. If needed, you can use the toolbar to adjust the font size and style.
• Additional details: Add your contact details and the address below the organization’s name.

Step 4: Add invoice details

After mentioning the company name, let’s move on to add specific details to the blank invoice template. Read the following:

• Invoice details date: Add the invoice date in the cells from B to C column.
• Invoice number: Add the invoice number in the cells from F to G column.
• Due date: Next, write the due date and add the payment due date.

Step 5: Client information

Adding the client’s information to the Google Sheets invoice template is essential.

• Invoice for: Write an invoice for cells B11 to C11 and add your client’s name.
• Additional information: Add your customer’s address along with their contact details for better connectivity.

Step 6: An itemized list of services or products

In this step, we will add the item description with their respective prices to offer better clarity to the client.

• Headers: Add the description, unit price, and total price in separate columns.
• Items: List each service and product offered to the clients.
• Total items: Calculate the total amount by multiplying the quantity by the unit price of each item.

As shown in the image, the total amount of item 1 is $400 (2 × $200), and for Item 2, it is $400 (4 × $100).

Step 7: Calculate totals

It is always a better idea to add formulas for calculating totals.

• Subtotal: Add a cell for mentioning subtotal. You can make use of formulas like =SUM(G19:G20). Here, the G19 and G20 comprise individual totals, adding up to a subtotal of $800.

• Adjustment: If required add adjustments. It can be anything ranging from a discount to a surcharge. Suppose, you wish to offer a discount of $200, then you’ll have to write -200 in the adjustment cell. To subtract the $200, make use of formulas like  =G24-200.

• Total amount: After offering the discount, add another cell to mention the total below adjustments. As shown below in the image, the total amount due would be $600.

Step 8: Additional notes

In case, you need to add any additional notes or payment terms,

Write notes in the cell and provide any additional information such as payment methods or terms.

Step 9: Format your invoice

Ensure to make your invoice as professional as possible.

• Alignment: To enhance readability, align your texts properly.
• Fonts: Make use of bold fonts for headers.
• Borders: Make use of borders to differentiate between two sections.

Step 10: Save as a template and send

Once your invoice layout is ready, save it as an invoice template. Go to files and save this document as an invoice template.

Reuse: Whenever you need to create a new invoice, open this ready-to-use Google Sheets invoice template and fill in the new details.

What are the Top 5 Benefits of Using Google Sheets for Small Businesses?

Here is a list of the top 5 benefits of using Google Sheets for small businesses:

1. Cost-effective

Google Sheets is a great tool for small businesses working on tight budgets. It is a free tool that offers a spreadsheet solution and is accessible from any device with internet access. This makes it a viable option for small businesses that need to create invoices without expensive software.

2. Customizable for various U.S. Tax requirements

It is easier to customize your invoice templates in Google Sheets to comply with state-specific taxes like sales tax. The add-ons available in Google Sheets allow you to meet your specific business needs without any custom software development.

3. Compliance with U.S. accounting standards

Another benefit of Google Sheets is its ability to customize free invoice templates in compliance with U.S. Generally Accepted Accounting Principles (GAAP). This compliance is of great help to small businesses like contractors, freelancers, and electricians to maintain accurate financial records.

4. Cloud-based storage for compliance

Google Sheets invoice templates allow you to store your invoices in the cloud (Google Drive) automatically. This cloud-based storage helps to make your financial records accessible, and ready for tax audits or compliance with IRS requirements.

5. Integration with U.S.-based payment tools

Google Sheets can be linked to popular U.S. payment platforms like Stripe, PayPal, or ACH transfers. This will help you to streamline your billing process and ensure timely and secured payments from the clients.

What are the Key Elements of an Invoice in Google Sheets?

The key elements of an invoice in Google Sheets are stated below:

• Header information: Add your business name, company logo, address, and contact details, as well as the client’s details.
• Invoice number: Add a unique number for each invoice to track payments effortlessly.
• Date of issue: Mention the date of invoice creation and send it to the client.
• Description of services: Offer a detailed service or product list along with their quantities and rates.
• Subtotal: Showcase the total amount before taxes and discounts are applied.
• Taxes and discounts: Offer clarity regarding the tax amounts that will offer a comprehensive view of the finances.
• Total amount due: Showcase the final amount after adding all the applicable charges that a client has to pay.
• Payment terms: Offer details regarding the payment methods accepted, due dates, and any late fees or penalties for overdue payments.
• Notes: Add additional information related to a specific transaction, like return policies or special instructions.

Alternative Tools for Invoicing (Comparing Google Sheets to Google Docs)

Here are the key differences between Google Sheets and Google Docs.

Features	Google Sheets	Google Docs
Best for	Managing invoices with multiple line items, calculations, and detailed financial data	Managing text-based invoices with minimal formatting is simple. You can create an invoice in Google Docs for easy editing and formatting flexibility.
Ease of use	User-friendly for those familiar with spreadsheets, especially with formulas for calculations	Extremely easy to use for basic invoicing but lacks automation features like formulas
Customization options	Highly customizable with cell formatting, borders, colors, and formulas	Limited customization, mainly text formatting (bold, italics, font size)
Automation	Automatic calculations for totals, taxes, and discounts via formulas	No automation; all calculations need to be done manually
Templates available	Multiple pre-made professional invoice templates with integrated calculations	Limited pre-made templates; invoices need to be created from scratch or copied
Integration with payment systems	No direct integration, but you can manually add links or notes for payment methods	No direct integration; only allows simple text for payment details
Collaboration	Real-time collaboration; multiple users can edit simultaneously with comments	Allows real-time collaboration but is more suitable for discussions than data management
Data tracking	Excellent for tracking and updating invoice numbers, amounts, and dates in one sheet	Limited tracking; no structured way to manage multiple invoices within one document
Complexity of invoices	Ideal for complex invoices with itemized services, taxes, and multiple rows of data	Best for simple, one-off invoices with minimal complexity
Download formats	Easily downloadable in Excel, PDF, or CSV formats	Can be downloaded as Word, PDF, or simple text documents
Security	Google Drive-based security with sharing restrictions, and history tracking	Same Google Drive-based security, but not ideal for data-heavy documents
Overall efficiency	High efficiency for businesses with recurring or detailed invoicing needs	Lower efficiency due to manual effort required for calculations and formatting

Google Sheets: An Effective Solution for Invoice Creation

Creating invoices with Google Sheets is one of the most simple ways to manage your billing process. Google Sheets is power-packed with several features like customizable templates, built-in formulas, and easy sharing options. These features make it a great option for freelancers and small business owners.

Another amazing thing about Google Sheets is its free availability which eliminates the need for expensive software. The flexibility and cloud storage of Google Sheets streamline the entire invoicing process and help you stay organized without any hassle.