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5 Min. Read

How to Send an Invoice on PayPal: 7 Simple Steps

How to Send an Invoice on PayPal: 7 Simple Steps

PayPal is one of the most popular tools for making and accepting online payments. But if you’re running an actual business, you’ll want to keep good records. Invoices are an important part of this process.

An invoice is a detailed billing statement that shows what you sold and how much it sold for. It lets your customer know how much they owe, and what they’re getting for their money. Invoices are also helpful at tax time, so you’ll have proof of where your income came from.

So, how do you use PayPal to create an invoice, and why should you create one? Here’s a quick primer.

Here’s What We’ll Cover:

Why Create a PayPal Invoice?

How to Create Your Invoice

Key Takeaways

Why Create a PayPal Invoice?

To begin with, why use PayPal to create your invoice?

For one thing, you can create a professional invoice without using any other tools. This can include your company logo, shipping charges, and other information. You can also include terms and conditions, or a personalized note for your customer.

For another thing, PayPal gives you a single invoice platform for all your customers. As long as they have a PayPal account, you can bill them from here.

You can also create an invoice template, or more than one template for different types of invoice. You can import invoice details from previous bills for repeat customers. This makes it easy to work with customers who order the same thing again and again.

PayPal also makes it easy to keep track of unpaid invoices. You can actually sort these separately, and send an email reminder by clicking the adjacent button. At the same time, you can also manually mark invoices as paid. So if a customer paid with cash or check, you’ll still have a record of the transaction.

Along the same lines, PayPal’s invoice system can also be used for subscription services. If you bill a monthly fee for your service, your customers will automatically receive a bill. You can choose the date and other details. And you can make modifications at any time by altering the template.

Another great feature is that sending an invoice is free. There’s no extra charge, and no additional cost when you receive your payment. All you pay is the standard PayPal transaction fee when you receive your payment.

Communications are another major benefit to PayPal invoicing. You can cc multiple people on an invoice, including business partners or a customer’s financial advisor. You can even split an invoice between multiple individuals for group services.

Not only that, but PayPal invoicing is convenient for customers as well as businesses. Customers can pay for your product or service the same way they'd pay for anything else online. They can use whatever payment method they want, from credit cards to their bank to a paper check.

Finally, PayPal invoices provide a record for customers as well as for you. If your customer is a business and your product is tax-deductible, they're going to want a written record. So a professional invoice is helpful for you and your customers alike.

How to Create Your Invoice

You’ll need a few things to create a PayPal invoice. First, you’ll need a PayPal Business account. Thankfully, these accounts are easy to set up, and there’s no added fee. Second, you’ll need your customer’s email address. If you’re going to put a logo on your invoice, you’ll also need a compatible image file.

With those two or three things in hand, follow the following steps to create your invoice:

  1. Login to your PayPal account on a PC, Mac, or tablet.
  2. Click the “Tools” link on the top menu, and select the “Invoicing” option, then “Create Invoice.”
  3. Enter your customer’s email address. Enter any other addresses in the cc field.
  4. Click “Add customer details.” This will automatically fill out the customer name, as well as the shipping address if necessary.
  5. Fill out the sale list, including individual items, quantities, and prices. Include any late payment fees or other extra charges.
  6. Double check the invoice to make sure everything is correct.
  7. Click “Send.”

PayPal will now generate an invoice and send an email notification to your customer. Your customers can then pay with their preferred payment method. This can be their PayPal balance, or they can use a credit or debit card instead.

Key Takeaways

As you can see, creating a PayPal invoice is easier than many other parts of running your business. With a few simple steps, you can bill your customers, create a record for tax purposes, and even cc a third party. If you’re already using PayPal, there’s no excuse for not using their invoicing system.

Looking for more tips for your small business? Check out our resource hub.