Last October we shared tips for getting paid more quickly by clients. While getting invoices sent out immediately was probably one of the most obvious pieces of advice, we didn’t go into details about what to include on an invoice.
An invoice is simple to create, yet there are specific guidelines, set out by the Government, that you need to be aware of.
You don’t need specialist invoicing software; a simple Word Document will do. However, we recommend using a service like QuickBooks for ease of use. Click here to discover more about the benefits of Quickbooks and why we recommend it to all our clients
What to include on an invoice:
It seems like a no-brainer, but your customer wants to know what they are paying you for. Break the invoice down into the specifics of each individual product or service. The Government asks that you show a clear description of what you’re charging for.
Each invoice should show your company name, address and any relevant contact information.
Likewise, you should show the company name and address of each person you invoice.
Each invoice needs the date you created it, and you can include the date payment is due if you wish.
Described as a ‘unique identification number’ each invoice should have its own number. If you’re just starting out, you might choose not to start from the number one. You could try something like 243001 if you start business on 24th March, for example.
It’s an invoice, stupid!
You might be surprised to hear that the first piece of information required on the document is the word ‘invoice’! And it needs to be clearly displayed.
There’s often a difference between when you supply goods or services and when you invoice. Make sure you include the supply date.
As well as individual amounts, you need to state the total amount due. This is the amount payable after services, products and any discounts have been accounted for.
If you are VAT registered, the VAT amount should be clearly indicated on the invoice. If you’re not VAT registered, this doesn’t apply.
Do you dread sending invoices? Call us today to find out how QuickBooks can save you time and money.