It is a legal requirement that a sales invoice is raised when you sell a service or product to a customer. The invoices need to be stored for a set number of years and may be needed by accountants for your year end or HMRC.
The design of your invoice will reflect on your company image. If you are invoicing large companies it may be worth designing an invoice which stands out. One way of doing this is to use a different coloured paper.
There are legal requirements for the type of information needed on each invoice this depends on how your business is structured:
If you are VAT registered you will also need to include the following:
You may also like to include, contact phone and fax numbers, email address, website and details on how to pay for the invoice by BACS or online payments.
Include as much information as possible on an invoice especially if you are providing credit terms. You should include your customer's contact name, and a purchase order number if you have been given one: this may help your invoice to be paid quicker.
Your customer should have a copy of your terms and conditions of sale. Many businesses include a printed copy of their terms and conditions of sale with their invoices, either printed on the rear or as a separate document.
Make sure you always issue your invoices promptly: the sooner they are issued, the sooner you will be paid.
There are several ways to issue a sales invoice
Invoicing software is included in most accounts software packages. You will find it much easier to use this function as the information will automatically be recorded in the sales ledger and VAT control accounts.
Free Excel and Word Invoice Templates
If you are using manual records then there are free Excel and word invoice templates which you can download. Click Here to view a list of suitable templates. Make sure you find the right template for your business structure.
You can also purchase invoice forms or books.
If you only issue a few invoices and run a manual system it is worth keeping an invoice log. This will list Invoice Number, Date, PO Number, Customer Name, Net Amount, VAT and Gross Amount.
This log will make it much easier to trace an invoice if you want to check any information in the future, rather than looking through the whole invoice file.
There are companies which will raise sales invoices for you.
Once you have issued a sales invoice, you will need to keep copies of them for your tax purposes. By law, you will need to keep copies of these sales invoices for a number of years, and your accountant may require access to them when auditing your business accounts.
You will find it easier if they are filed in numeric order with the newest on top: this makes them easy to file and easier to locate later.
Finally, you need to make sure your customer has received your invoice and that it has been accepted for payment. Click Here for more information on Credit Control and for tips on making sure your invoices are paid promptly.
Bookkeeping basics are at the centre of all your business accounting reports. Without bookkeeping you will not be able to keep control of your company finances.
Understanding the accounting basics within any company is very important. The reports that are compiled will help you to make decisions about how you need to change or improve your business.
We've written a number of free accounting guides and free business guides to help you get on top of your accounts.
Accounting Software Reviews and Downloads
Reviews on bookkeeping software packages, Microsoft Excel template downloads and free bookkeeping software downloads.
Free Bookkeeping Software
Do you want free accounting software, with no catches? You can download Microsoft Office Accounting Express Edition - free accounting software - and get started right now.
Free Excel Bookkeeping Templates
If you already use Microsoft Excel and want to use it to help your bookkeeping, there are some free Excel Bookkeeping Templates available to help you get started.