Quick Guide: What to Include on Invoices
New to raising and sending invoices? Here’s a quick guide to ensure you include all of the info required by the customer, HMRC and your own business.
Include the word ‘Invoice’
First and simplest of all, make sure the document is identified with the word ‘Invoice’. This way, the recipient can instantly see that it’s an invoice rather than a receipt, quote or credit note.
Invoice number
A unique reference number must be created for each invoice, with a sequential numbering system being the most popular approach. For instance, INV-001, INV-002, INV-003, and so on. This enables both you and the client to keep a clear record of your transactions.
Dates
The invoice should include the date it’s being issue, the date the goods or services were supplied (optional), and the date when payment is due.
Payment terms
Even though you’ve included a date for when the invoice is due, it’s a good idea to also include payment terms that have been agreed with the client beforehand. A common example is ‘Payment due within 30 days’.
Business information
The name of your business as well as its logo, postal address, contact information and company number (if applicable) should all be clearly visible.
Customer’s information
The company name and address of the customer should also be included.
Purchase order number
If the client has provided you with a PO number, this needs to be added to your invoice for mutual reference.
Description of services
Each product or service delivered should be briefly described and allocated its own line. It’s also a good idea to note the quantity supplied for each item, even if it’s just one of each. By putting each product/service on its own line, you can provide a clear cost breakdown for the customer’s benefit.
VAT
If your business is VAT registered, each product/service line should include the VAT rate being charged, as well as the total amount of VAT at the bottom. You must also include your company’s VAT number.
Ask us about Xero
Xero is one of the world’s most trusted, versatile and easy-to-use cloud accounting systems, which will help you to navigate your numbers and make key business decisions with confidence. To find out more, please call our Yorkshire office on 01482 235575, our London office on 0207 885 0605, or fill in the contact form below.
Tagged as: Accountancy Tips & Advice
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