How to Create an Invoice in Excel (and Why You May Want to Rethink It)

Creating an invoice in Excel can seem like a quick and simple way to bill clients, especially for small businesses or freelancers just getting started. But as your business grows, so do your invoicing needs. In this blog, we’ll walk you through how to create an invoice in Excel and explore when it makes sense to use it (and when it doesn’t.)

How Do I Create an Invoice from an Excel Spreadsheet?

To create an invoice in Excel, follow these steps:

1. Open a new spreadsheet and title it "Invoice" at the top.
2. Add your business details, such as name, logo, address, and contact info.
3. Include customer information, invoice number, date, and payment terms.
4. Create a table for your items or services, including columns for description, quantity, rate, and total.
5. Use formulas to automatically calculate totals and taxes.
6. Save and export the invoice as a PDF to send to your customer.

You can also find free Excel invoice templates online that you can customize, saving you time on formatting.

Can You Use Spreadsheets to Create an Invoice?

Yes, you can absolutely use spreadsheets like Excel or Google Sheets to create invoices. But should you? That depends. While they offer flexibility and control, spreadsheets require manual input and constant formatting, making them prone to errors, especially when managing high volumes.

For businesses dealing with frequent invoicing, modern invoicing software or AI-powered platforms are more reliable, scalable, and secure.

Is It Better to Create an Invoice in Word or Excel?

Both Microsoft Word and Excel offer templates for invoicing, but Excel is usually the better option. Why? It allows for automated calculations using formulas, which reduces manual errors. Word might look more polished for layout and design, but Excel is more functional, especially when tracking payments or calculating totals.

Still, neither Word nor Excel is ideal for businesses that need automation, analytics, or seamless integration with other systems.

Is Excel Good for Invoicing?

Excel is good for simple, one-off invoices or for freelancers with low invoice volume. It provides you with full control and doesn’t require any additional software.

But if you’re sending dozens (or hundreds) of invoices a month, Excel becomes inefficient. It doesn’t scale well, lacks real-time visibility, and can’t automate tasks like payment reminders or approval workflows. Platforms with AI capabilities, like Rio or other automation tools, can extract, validate, and reconcile invoice data far faster and more accurately than a human working in Excel.

Which Software Is Best for Making an Invoice?

Here’s what great invoicing software should offer:

• AI-driven data extraction and validation
• Automated matching to purchase orders or receipts
• Customizable templates with branding options
• Real-time dashboards and reporting
• Integration with ERP or accounting systems
• Built-in compliance and tax features
• Scalability to grow with your business

Choose a solution that doesn’t just let you create invoices, but helps you manage the entire billing lifecycle, such as Rio,

When Should You Not Use Excel?

• When your business is growing and manual invoicing becomes unmanageable
• When accuracy and compliance are critical (and errors carry financial risk)
• When your team needs visibility into approval flows or payment status
• When you want to reduce DSO (Days Sales Outstanding) and improve cash flow
• When you’re tired of chasing down late payments manually

In short, if your invoicing process is holding you back or draining resources, it’s time to move beyond spreadsheets.

Streamline Your Invoicing Process

Invoicing doesn’t need to be time-consuming or error-prone. With the right technology, you can eliminate manual entry, improve accuracy, and free up your team for more strategic work. AI-powered invoicing solutions can read and interpret invoice data, automatically match it with contracts or purchase orders (POs), and send it for approval without any human intervention.

If you're still relying on Excel, consider this your sign to explore smarter alternatives. Because invoicing should move your business forward, not slow it down.

Ready to move on from Excel? Fill out the form below to see if Rio is a good match for your organization.