![]() ![]() 5 late payments rules you need to follow to get paidĭepending on whether you’re a sole trader or a limited company, there are a few differences to be aware of when it comes to creating your invoices.How to change the way you manage your cash flow.For example, your bank sort code and account number for BACS payments.įor invoices to international customers, IBAN/BIC/SWIFT numbers should be included. List the different ways that an invoice can be paid and include the bank account references. Some customers may also require that the name of the contact person is shown on the invoice.Īsking for a purchase order is recommended as once generated this is a legally binding contract between yourself and your client/customer. If your customer provides you with a purchase order number, then this should be clearly shown on the invoice. These are your terms for the length of time to pay and should be marked at the bottom of the invoice. ![]() Usually defined in your terms and conditions and agreed by your customer. The sum total of all goods listed on the invoice.ĭownload your free guide, 7 ways to take control of your business, and take steps now to master your business admin You should also include: 10. If you have a list of items in the description, then each one will be marked with an individual amount. The amount of the individual goods or services to be paid The date of the invoiceĭate of when the invoice was generated and not when the goods were supplied. The supply date may be different to the invoice date but is usually within 30 days. Known as the ‘supply date’, this is when the goods or services were issued. A description of the goods/servicesĪ clear description of the goods and services being invoiced for, with each service or item on a separate line for clear identification. This is standard procedure on all invoices (except simplified VAT invoices) but is important for customers who want to claim back any VAT that has been charged. The company name and address of the customer This is different for sole traders and limited companies but essentially, you must show clearly your trading name, business address and also, where you can be contacted by the customer, in case of query or dispute. The reference can contain letters as well as numbers. Using a sequential numbering system is the easiest way to manage this. The number must be unique to each invoice (without duplicates) for clear identification and you must keep a record of the numbers and references used. Identify the document with the word ‘invoice’ to differentiate from a quote, credit note or receipt. ![]() Sign up now What should be included in an invoice?Ī standard (non-VAT) invoice must include: Want to get the latest tips to boost your chances of getting paid on time? Sign up today to receive the Sage Advice newsletter, straight to your inbox. When is the best time to send your invoice?įinally, how to get paid on time, every time What a full or modified invoice must show Sole trader invoice vs limited company invoice You can also use accounting software to create and send professional invoices, and track what is owed to you. To help you be professional, check out our article on invoice templates – we’ve designed a series of them, which you can download. Meanwhile, a well-formatted invoice can make the difference to ensure you get paid quickly avoiding complication from incomplete or unclear information.Ī well-designed invoice that covers all the required information will send a good impression to your clients and customers.Ī page with basic errors and unclear layout can make you appear unprofessional and is something that you will want to avoid.įor different business types such as sole trader, limited company and those registered for VAT there are specific legal requirements for what you must include in your invoice.īelow is a full guide to creating an invoice for your small business. One option is to use an automated solution that takes payments directly from your invoices so you get paid on time. Being paid what you are due is important but being paid on time is essential to avoid a strangled cash flow. Cash is the lifeblood of any business, without it you don’t survive. ![]()
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