What Needs To Go On An Invoice?
And why is it so important?
POSTED BY ALISON MEAD ON 01/10/2018 @ 8:00AM
You'd be surprised at how many businesses don't invoice correctly. Missing vital information can stop a customer from processing payments, so what needs to go on an invoice?
If you want to know what needs to go on an invoice, I'll send you our factsheet!
photo by rawpixel on unsplash
One of the most important things you need to pin down right at the start of running your business is how you are going to earn money from your skill or product.
You could be the best salesman in the world, but if you don't keep track of your bookkeeping and accounts then you could end up working really hard for nothing.
According to HMRC, If you provide a customer with a product or a service in return for money (or a promise to pay) you need to give them an invoice if both you and the customer are registered for VAT (a business-to-business transaction).
An invoice is not the same as a receipt, which is an acknowledgement of payment. An invoice needs to include certain information such as how much the customer needs to pay and when the customer must pay it by.
An invoice must also include:
a unique ID number
your company name, address and contact information
the company name and address of the customer you are invoicing
a clear description of what you are charging for
the date the goods or services were provided (supply date)
the date of the invoice
the amount being charged
VAT amount if applicable
the total amount owed
We have collated a fact sheet of 10 points you need to consider before choosing how you are planning to keep control of your invoicing.
Many of the points can't be ignored due to the legislative hoops you need to jump through when you work for yourself (like self-assessment tax returns, company returns, VAT returns and payroll records), but if you take a look at the factsheet then have a consultation with me, we can get you started on the right track and find you the right tools to help you run your business.
"Would you like to know more?"
If you'd like to find out what needs to go on an invoice, or anything more about bookkeeping and your accounts, do give me a call on 01604 420057 or click here to ping me an email and let's see how I can help you.
Until next time ...
If anything I've written here resonates with you, why not visit www.siliconbullet.com to discover how we can help you with accounts and IT support?
Alison loves bookkeeping. She has been helping clients to be better bookkeepers in Sage 50 for over 22 years and has more recently added Xero Accreditation to her list of skills.
She specialises in a very unique hand-holding method of training, helping bookkeepers and business owners to use their accounts software as and when they need support in setting up and producing their invoices, reports and financial information.
Alison combines her role at Silicon Bullet with running two network marketing businesses and is also a Regional Leader for 4Networking as she likes to keep busy.
You know what they say, if you want something done well ask a busy person!