What makes an invoice

Avoid queries from customers by making the description on the invoice of what you are selling them as clear as you can. If a customer has to phone up to query an invoice, they may see this as poor service on your part, and it may also mean they take longer to pay. Make it as easy as possible for customers to pay you. Include your bank account details on your invoices if you are taking payment from online banking or by BACS. If you send your invoices by email and use a service such as PayPal or GoCardless to collect payment from customers, include a link when you email the invoice, so that customers can pay with one click.

Remember that it's for you to decide how quickly you want to get paid. Set your payment terms and make sure your customers keep to them! Make sure that your invoices are clearly laid out with all the information a customer needs. Here are some common approaches to assigning invoice numbers:. This is the simplest way to assign invoice numbers and is the default method adopted by most cloud-based invoicing software. To assign sequential invoice numbers, you would start with any number usually 1 and assign each proceeding invoice the next number in the sequence.

For example:. The first series of numbers in the ID will therefore always refer to the date. After the date, your invoice number will also include unique numbers assigned to that invoice. You can use any date format you like for chronological invoice numbers. For example, if an invoice is created on September 30, and the unique invoice number is , you could assign this number to the invoice: Some businesses assign unique customer IDs to each of their clients, and you can use the customer ID to assign invoice numbers.

The process for assigning invoice numbers by customer ID is similar to the process for chronological numbering. The invoice ID will begin with the customer ID number and then a unique number will follow. If your business works on a number of projects at a time and you bill clients by project, then you may wish to assign invoice numbers by project ID.

This method is common in the construction industry. To assign invoice numbers by project ID, the first part of your invoice number will refer to the project ID and the second part will be a sequential number to differentiate between different invoices issued for this specific project. Take this into account when deciding how it will be delivered. By law, you need to keep business records for at least 5 years. Whether you keep printed or electronic records is up to you. These will help you prepare your business activity statement BAS , income tax return and other tax obligations.

There are a number of ways to deal with unpaid debts and customer disputes. Find helpful tips and resources on how to deal with not being paid. If you receive a tax invoice with missing information, ask your supplier for a valid tax invoice. You may also be able to treat the tax invoice as valid where the missing information can be obtained from other documents the supplier has given you.

We acknowledge the traditional owners of the country throughout Australia and their continuing connection to land, sea and community. We pay our respect to them and their cultures and to the elders past and present. Toggle navigation. How to invoice. How to invoice Last Updated: 24 September Learn what to include in an invoice so that it is valid and helps your customers to pay you.

Follow the steps below for invoicing, from creating and sending invoices, through to dealing with unpaid invoices. You'll also find information on what to do if an invoice is incorrect. Use QuickBooks to generate invoices and accept payments. Information may be abridged and therefore incomplete. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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