12 Tips for correct invoicing
Invoicing correctly is an important process for any business. Here are 12 basic steps to ensure your invoices include all the necessary information and won’t trip you up in future:
- Corporate Information:
- Ensure your invoice includes your company’s legal name, address, telephone number, and email address.
- Customer Information:
- Include the complete details of the customer you are billing, including their name, address, and tax identification number or NIF.
- Invoice Number:
- Each invoice should be uniquely and sequentially numbered. This helps with accounting and tracking.
- Date of Issue and Due Date:
- Add the date the invoice was issued and the date the invoice should be paid.
- Describe Goods or Services:
- Accurately describe the goods or services you are billing for. Include the quantity, unit price, and total cost of each item.
- If applicable, calculate and break down the applicable taxes, such as IGIC or sales tax. If invoice is tax-exempt, make sure this is written at the bottom.
- Total Due:
- Include the total amount due, including taxes and any discounts.
- Method of Payment:
- Clearly show how you expect to be paid and if you offer payment options. Don’t forget the necessary details to make the payment, such as your bank account number or the address to send a cheque.
- Terms and Conditions:
- Include all relevant statements or conditions you work to, such as return policies, payment deadlines, or penalties for late payments.
- Additional Information:
- You may want to include any other relevant additional information, such as reference numbers, purchase order numbers, or additional notes, as necessary.
- Signature and Contacts:
- Sign the invoice with the name and position of the issuer, along with contact information for enquiries.
- Invoice Submission:
- Send the invoice to the customer promptly, whether by email, post, or any other agreed-upon method.
When issuing invoices, it is essential to comply with the tax and accounting laws of your country. Additionally, maintaining a formal record of all invoices sent and received is crucial for effective financial management. Compliance with all local regulations and requirements is essential therefore it is always advisable to consult with a tax advisor or expert.
If you need advice, come see us or make an appointment.