Invoices are not only statements, but they are formal documents which are instrumental in actualization of business transactions and record keeping. Therefore, freelancers, or businesses owners, as well as managers of large companies, need to create a properly structured invoice. Here’s a breakdown of the key elements you should include in every invoice:
1.Header Information
The header must include the name of your business, business address as well as your phone number or any other contact number. Moreover, you also have to identity of the client’s location, phone number and other convenient ways to contact the client. An invoice serial number and the date/s when the particular invoice was issued also need to be added.
2. List of Service Items
It should include an itemized list of services or products to be provided by the contractor to the client in the carrying out of the construction project. Besides, it is important to state each service offered or a product that is being sold in a clean and neat manner. State quantities, rate, description and total amount for each item on the service.
3. Payment Terms State
Describe accurate information about the early payment discounts or late fees. It is relevant to indicate the options agreed upon for payment (for instance, bank transfer, credit card, PayPal).
4.Tax Information
You have to make sure to indicate the taxes applicable (for instance sales tax, VAT) and its rates. If you have a tax identification number, include that in your application too.
5. Terms of Service
Add simple terms of your service agreement or contract. Explain refund policies where necessary so that customers are aware of such polices before they pay to make a purchase.
6. Total Amount Due
The total amount that a customer is expected to pay should be provided at the end after combining all charges including taxes.
7. Additional Notes Optional
Include any commenting you deem fit, instructions or a message of gratitude to the viewers.
8. Logo or Trademark
Branding Increase professionalism by putting the company logo and employing the company’s brand colors at the left bottom or top right of the invoice.
9. Invoice Format
Make sure your invoice is clean and clear so that the person reading the invoice will easily comprehend it. In order not to relax the standards of presentation, it is recommended to use software or templates for convenience and adherence to best practices.
10. Follow Up
Make a plan on what action(s) you will take in case you are paid late or not at all on the agreed terms. Additionally, issuing an invoice and coming up with an elaborate one that suits your business also assists in tendering professional invoice appeals.
Thus, the inclusion of such elements guarantees free of obscurity, legal non-compliance, as well as simplification of the financial procedures for all the participants, including yourself and the clients. For further reading for how to improve your invoicing strategies and other business aspects, do not forget to check Fastlane HR. Need help or do you have any questions? Contact us today!