Handwritten invoices have been used for a long time as a method of billing clients and getting paid for selling goods or providing services. These manually created documents have been largely replaced by more contemporary, digital methods. However, using a handwritten invoice is perfectly legal and comes with its own benefits and drawbacks.

This article explores the nuances of these traditional invoices. You’ll learn when it’s appropriate to use them and when you should opt for more straightforward, electronic documents. Without further ado, let’s get started!

Key Takeaways

• A handwritten invoice is a manually created payment request sent to the buyer of goods or services.
• These documents serve the same purpose as digital invoices and should include information about the payer and payee, the description of goods or services, and payment terms.
• Creating invoices by hand can be quick and convenient, but it can lead to legibility problems, mistakes, and difficulties related to record-keeping.
• Using digital invoice generators (like the one at Paystub.org) simplifies the creation process and makes it easy to issue, store, and retrieve them.

What Is a Handwritten Invoice?

Before we dive into the specifics, pros, and cons of handwritten invoices, let’s first define them and see their use cases.

Definition and Purpose

A handwritten invoice is a manually prepared document issued to bill clients for goods sold or services provided. It is typically a piece of paper with information like contact details, an itemized list of goods or services, payment terms, and so on.

Its purpose is to represent a formal sale record and demand for payment that legally binds relevant parties. In that regard, a handwritten invoice doesn’t differ from a digital one.

Legal Status of Handwritten Invoices

Handwritten invoices are generally considered legal documents, as long as they are properly written and have all the necessary information. They need to identify the sellers and the buyers clearly, describe the goods and the services, outline the rates and prices, and specify the payment dates.

While invoices aren’t legally binding like contracts signed by both parties, they can be valuable documents during disputes or tax audits.

When Handwritten Invoices Are Commonly Used

Handwritten invoices are commonly used in scenarios where they are more convenient than their digital counterparts. They are most often employed by freelancers and small business owners who have low transaction volumes, so they don’t spend much time or resources generating invoices.

They are also used for on-the-spot billing, usually by tradespeople like plumbing professionals and electricians. These professionals can quickly create a handwritten invoice upon completing their services without the need for specialized software and technology.

In specific cases, a handwritten invoice can be used instead of an electronic document to show appreciation for a customer through effort.

Essential Elements of a Handwritten Invoice

A handwritten invoice is only valid as long as it has the essential elements; otherwise, you can run into disputes, delayed payments, and other issues.

Let’s find out what these elements are:

Required Business Information

Your business information is a must-have on an invoice, both written and digital. The client must see your business’s full legal name and contact details, like address, phone number, and email.

Having a logo in this section could help with marketing purposes, as it would reinforce your branding. While this is much easier with digital invoices, you can still do it with handwritten documents, as long as you have your logo pre-printed instead of using a blank piece of paper.

Client Information Section

You should list the information about the client in the same way you’ve included your business information. Accurately include the client’s or company’s full name and address to specify who needs to pay for the goods or services.

If there is a particular person or department within a company to whom you’re sending your invoice, you should include their name as well. It’s vital to double-check this section of your invoice, as even a simple typo can lead to delayed payments or disputes down the road.

Service/Product Details

An accurate description of the products sold or services provided is the most important part of an invoice. This is typically done in the form of an itemized list, where each item contains all the essential details, such as the name of the goods or services, the rate or price per unit, the quantity, and the total amount.

Vague descriptions and broad terminology can lead to issues with the client (and potentially with the IRS during tax audits), making it critical to be precise and transparent.

Payment Information and Terms

The final essential element of a handwritten invoice is the total amount due and payment terms. You should provide a sum of all the items and include any taxes, if applicable. If you’re working with international clients, you should also specify the currency.

On top of that, you want to include your preferred payment terms. For instance, you can set a due date or use one of the net terms (e.g., net 15 or net 60). You can also include your accepted payment methods, like wire transfer or cash.

How to Create a Professional Handwritten Invoice

Now that you know what information to include, let’s show you how to write a written invoice to look professional.

Choosing the Right Paper and Format

Choosing the right paper and using an established format allows you to write your invoice faster and ensure a professional look. While you can use plain paper and format your invoice on the go, you should only do that when absolutely necessary (e.g., if you’re in a rush).

Otherwise, it’s best to get pre-printed invoice pads or books that are commonly available in stores as stationery. They provide a structure, and you can use them as templates to fill in the blanks and get an organized appearance.

Additionally, letter-size paper (8.5 x 11 inches) is commonly used in the U.S. for most industries except for legal professions, where legal size (8.5 x 14 inches) is prevalent.

Writing Style and Presentation Tips

Your writing style and invoice presentation should revolve around legibility. Clear and readable writing is paramount, so you should use block letters if your cursive is difficult to read.

If you’re not using a template, you should anticipate how much information will be on your invoice to avoid cramping the text.

The pen you use should be of sufficient quality not to spill or smear the ink. Moreover, use standard black or blue ink that can’t be erased. Keep your handwriting and spacing consistent, lines straight, and avoid obscure abbreviations.

Numbering and Dating Your Invoices

Handwritten invoices should be numbered and dated for record-keeping purposes. While most specialized software automatically numbers digital invoices, when creating handwritten invoices, you should do it manually.

You should come up with a sequential numbering system that you can read and understand at a glance (e.g., 01, 02, or 2025-001, 2025-002). This helps you keep track of your invoices, file and store them efficiently, and quickly find the specific ones when you need them. Finally, dating your invoice is important for clients as it helps determine when the payment is due.

Including Terms and Conditions

Terms and conditions should be clearly outlined on every handwritten invoice. This includes having a payment due date or net terms, details about the accepted payment methods, penalties for late payments, invoice discounts, and so on. By transparently defining terms and conditions, you avoid ambiguity and misunderstanding.

Common Mistakes to Avoid with Handwritten Invoices

While an invoice can be handwritten in the absence of alternatives, this can lead to certain mistakes and inaccuracies. Let’s see what the most common ones are.

Missing Critical Information

One of the easiest mistakes to make when writing an invoice is to forget to include critical information. Since there’s no specialized software or tailor-made invoice template to ensure you’ve included all the important details, you can forget to include anything from a date or number to a product or service.

Missing critical information will result in an incomplete invoice, which can lead to future issues with clients or tax authorities. That’s why it’s essential to meticulously proofread your handwritten invoice and use a checklist to ensure the document has all the important information.

Legibility and Organization Problems

Crafting an invoice by hand can lead to poor legibility and suboptimal organization. Bad handwriting or a rushed handwritten invoice that looks like a mess can be difficult to read, which can result in misunderstanding, delayed payments, and conflict with the recipient.

Moreover, not having a preformatted document and organizing it as you write can lead to structural issues. A disorderly layout and crammed text also negatively impact readability and can make you and your business appear unprofessional. Additionally, low-quality pen, ink, and paper can further exacerbate the problem.

Inconsistent Record-Keeping

Record-keeping poses a greater challenge when using handwritten invoices instead of digital documents. Inconsistency in invoice management can result in missed or delayed payments, issues with the IRS, and more.

Professionals who issue handwritten invoices may also encounter difficulties keeping all the copies and organizing them. This can result in challenges when trying to track payments and unpaid invoices, especially ones with longer net terms.

All of that can create additional issues during the tax season. While there are other documents you can use instead of an invoice to file taxes (e.g., bills and bank statements), they significantly simplify the filing process.

Risks of Using Handwritten Invoices

While handwritten invoices offer immediate convenience and simplicity, they come with multiple risks you should be aware of.

The main disadvantages of paper invoices include the following:

• Easy to lose or damage. Handwritten invoices are paper documents and, as such, susceptible to physical damage and degradation. Water damage, accidental tears, and other mishaps can turn into significant problems if there are no backup copies. They can also be misplaced or lost in transportation, which doesn’t happen with digital invoices.

• Prone to human error. Manually writing an invoice, adding one item at a time, and performing calculations on the go significantly increases the chance of making a mistake. A mistake in contact information can make it hard for the client to get in touch with you, while a miscalculation can result in them underpaying or overpaying.

• Hard to track for taxes or audits. Finding a specific invoice during a tax season or audit can be a laborious process. While digital invoices can usually be found within seconds using a simple search option, finding physical copies will almost always take longer. Plus, manually extracting data and calculating it can result in additional errors

• Usually unprofessional in appearance. Handwritten invoices will, in most cases, look inferior to their electronic counterparts. Digital invoices are the norm in today’s business market, so creating and issuing handwritten invoices on blank paper can be perceived as a low-effort alternative that can negatively impact your business reputation.

Why Switch to a Digital Invoice Generator?

While handwritten invoices are acceptable, in most cases, digital invoice generators are a much better alternative. They negate all the major drawbacks of handwritten documents while offering benefits such as:

• Faster creation times and invoice automation features.
• Enhanced accuracy with built-in calculators to reduce manual error.
• Professional appearance with consistent formatting and branding opportunities.
• Improved record-keeping with the benefits of digital databases that are easy to use.
• Better tracking with options to provide alerts about missed or upcoming payments.
• Easy accessibility, as digital invoices can be accessed on any device.
• Reduced cost in the long run, since they don’t require ink and paper.
• Upgraded security, since digital invoices can be stored in the cloud and protected by encryption.

Paystub.org: The Modern Solution for Professional Invoicing

If you’re looking for a user-friendly digital invoice creator to transition from handwritten records, you should try our generator at Paystub.org.

Paystub Generator Features

The paystub generator offers a robust set of user-friendly features that allow everyone to generate detailed and professional invoices. There are numerous templates that contain all the necessary information, ensuring you won’t forget to include any important details.

The tool has a built-in calculator that performs automatic computations based on your inputs. This significantly reduces the risk of making mistakes, even when creating long and complex invoices.

Finally, automated invoice naming, dating, and numbering simplify tracking and organization of your invoices, making record-keeping a breeze.

Benefits for Small Business Owners

If you’re a small business owner, using Paystub.org document generators can help you save time and effort while streamlining your administrative processes. For instance, while even a commercial invoice can be handwritten, the process can be exceptionally tedious if there are numerous items to include.

In addition to generating professional invoices in minutes, you can use our other generators to help with different aspects of your business.

Some of our most-used tools include:

• Pay stub generator, which allows you to generate and issue pay stubs to your employees.
• Form W-2 generator, for when you need to file a wage and tax statement for your employees.
• Form 1099 generator, to report payments made to non-employees or income received from non-traditional sources.

How to Create Perfect Invoices in Minutes

Here’s a step-by-step guide on how to create an invoice online using the Paystub.org platform:

1. Select the invoice generator from the main page of the website.
2. Choose a template that suits your needs and pick a color, if applicable.
3. Fill out the form and upload your logo for branding purposes.
4. (Optional) Add or delete items at will and include additional notes.
5. Review your final invoice and download it after checkout.

Final Thoughts

While handwritten invoices have a historical significance and are still being used on some occasions, they are being surpassed by digital records. The immediate convenience and simplicity they offer usually aren’t beneficial in the long run, since online invoice generators streamline the process, enhance record-keeping, and improve data accuracy.

If you want a handy alternative that will help you transition to digital invoicing with ease, you should check out our invoice builder at Paystub.org. This modern solution will improve your invoicing process, maximize the accuracy, and enhance the professional appeal of your business.

Handwritten Invoice FAQ

#1. Are handwritten invoices legally binding?

Handwritten invoices are legally binding as long as they have all the essential information and are legible. However, an invoice is mostly a payment request. For stronger legal protection for both parties, you should use a contract agreement.

#2. How long should I keep copies of handwritten invoices?

In general, you should keep copies of handwritten invoices for at least three years. The IRS guidelines on keeping records state that you should keep them until the period of limitations for your tax return runs out. This is mostly between three and six years, but can even be indefinite.

#3. Can I switch between handwritten and digital invoices?

Yes, you can switch between handwritten and digital invoices, as there is no law that mandates you should stick to one option. However, maintaining consistency when creating and issuing invoices makes your business appear more professional and helps your record-keeping efforts.

#4. What should I do if I make a mistake on a handwritten invoice?

If you make a mistake on a handwritten invoice, it’s recommended that you create a new one. If you’ve already sent an invoice that contains an error, you should make a new one while canceling the one with a mistake by issuing a credit note.