Quickbook, Peachtree accting, or pretty much any financial program should be able to do it. Or you can use Excel or Word to make your own.
I still do it the old fashion way with a pen and store bought Avery 2 part invoice book. I like the convenience of being able to carry around with me and I only write couple of invoices a month.
I've seen it done with both Quickbooks and pen/paper depending on the circumstances (as in, ALWAYS carry around a blank invoice book on calls in case the customer needs an invoice right then).
Back when I was doing about $10K/year of consulting to the company that bought my old employer, they were perfectly happy with invocies done as a simple Word document with just a couple of horizontal lines to dress it up.
People don't care about how invoice looks. It's just a bill to them. The main thing is to make sure you detail all the charges so there's no confusion and you get paid properly.
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