- Every invoice should have a header with the company name, logo, and relevant contact information.
- The invoice should also include the date of the transaction, a unique identifier, and a description of the goods or services sold.
- In addition to the cost of the goods or services sold, any taxes or fees associated with the purchase should be itemized.
- Finally, the invoice should include the total amount due as well as any terms associated with late payment.
A Guide to Creating Accurate Invoices for Your Small Business
In business, an invoice is a document that indicates a purchase has been made. It provides details about the goods or services purchased, including a description of the work performed, the date of service, the cost, and any taxes or fees associated with the purchase.
Invoices are important because they provide a record of the transaction. This documentation can be used for tax purposes or in the event of a dispute. It is important to ensure that invoices are accurate so there is no confusion about what was purchased and when.
Here are some tips for creating and issuing invoices:
1. Include all relevant information.
The invoice should include your business name and contact information, as well as the customer’s name and contact information. The invoice should also include a description of the goods or services purchased, the date of service, the cost, and any taxes or fees associated with the purchase.
2. Format the document correctly.
The layout of an invoice can vary depending on your industry, but there are some basic elements that should always be included, such as your business name and logo, the customer’s name and address, and a description of the goods or services purchased.
3. Use clear language.
Clear language is essential for invoicing so that there’s no confusion about what the client is being charged for. Unfortunately, many businesses use jargon in their invoices, which can make it difficult for clients to understand what they’re being charged for.
This can lead to late payments or even non-payment, which can hurt your bottom line. To avoid this, use clear, concise language in your invoices. For example, instead of listing “design services” on an invoice, be specific and list the actual design services that were provided.
This will help ensure that your clients understand exactly what they’re being charged for, and it will help you get paid on time
4. Be sure to sign and date the invoice.
This will help to prevent any misunderstandings about what was agreed upon. It will also serve as proof that the invoice was issued. If sent by certified mail or email trail, you will also have a record that it was accepted on a certain date in its final form.
5. Keep copies of all invoices for your records.
This documentation can be useful for tax purposes or if there is ever a dispute about what was purchased and when. Depending on whether you’re a hard-copy or e-only type of person, here are some tips for keeping things tidy and organized.
Best Practices for Electronic Storage of Records:
- Use a reliable and secure data storage system.
- Back up your data regularly.
- Use encryption software to protect your data from unauthorized access.
- Store records in a secure location that is only accessible to authorized personnel.
Best Practices for Print Storage of Records:
- Store records in a secure location that is fire- and water-proof.
- Keep records in a climate-controlled environment to protect them from extreme weather conditions.
- Label all boxes or containers clearly so that it is easy to find specific records when needed.
Improve Your Invoicing, Improve Your Collections
Invoices are an important part of doing business because they provide a record of the transaction. It is important to ensure that invoices are accurate and include all relevant information so there is no confusion about what was purchased and when. By following these tips, you can help to ensure that your invoices are clear and accurate.
Do you still have invoicing questions or need help with your accounts receivable game plan? Southwest Recovery Services is an experienced debt recovery service that can also help you better manage your A/R. Contact us today to learn all about how we can help you!