Does your Invoice have all the vital details
Do you manually produce your invoices?
Find below a list of all the information that your invoice should include.
• the date it was issued
• an invoice number – this must be unique and if your company is VAT registered also be sequential
• your company’s name and trading name (if the two are different)
• your company’s number, registered office address, the part of the UK in which it is registered, e.g. England and Wales, and VAT registration number (if applicable)
• a correspondence address and other contact information, e.g. telephone number
• the name and address of the customer being invoiced
• all relevant reference numbers, e.g. your client reference and its purchase order number
• a clear, concise, description of the goods and/or services that are being charged for
• the date or period of time the goods and/or services were provided, i.e. the supply date, plus the tax point if the supply date is different to the invoice date (see The next step )
• the exact amount(s) being charged net of VAT
• the VAT amount and rate (if applicable)
• the total amount owed
• your payment terms
• bank details if you accept electronic payments.
The payment date
Most businesses usually ask for payment within 30 days but you can reduce this, e.g. to 21 days, provided the customer has been made aware via your terms and conditions of business and have agreed to it. If you haven’t stated payment terms on your invoice, the default 30-day period will apply.
Tip. The maximum payment period which can be agreed is 60 days but, from your perspective, the only time you should agree to this is where you’re the one on the receiving end of an invoice.
Did you know that most cloud based software has the facility for you to produce your invoices directly in your accounting package. This will save you time and money as your Accountant wouldn’t have to input your sales.
If you are thinking of moving to a cloud based software please give me a call and I will give you some information on what’s on offer
Have a great weekend
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