Are You Invoicing Correctly?
If you are new to business, you may have some questions that you feel you should know the answer to, but don’t. For example, you've done some work for a client, it's ready to go out but "How do I write an invoice?" You know you have seen hundreds of invoices, but you can’t for the life of you remember what should be on there and where. Here are some guides on how to invoice your customers:
- HMRC’s guide to invoicing https://www.gov.uk/invoicing-and-taking-payment-from-customers/invoices-what-they-must-include
- HMRC’s guide to VAT invoices https://www.gov.uk/vat-record-keeping/vat-invoices
- Even if you don’t use Freeagent, this is a great guide from them http://www.freeagent.com/central/invoice-template-basics
If you are providing a service to a customer, I have found that I get paid quicker if I email the invoice, rather than post it, as soon as the service is completed. Don’t wait until the end of the month, as the customer will have forgotten how happy they were with your work. I also make sure that I make it as easy as possible for the client to pay me. Make sure that your bank details are on the invoice and that your payment terms are clearly set out, these should match your terms and conditions. If your software is clever, then you could set automatic reminders for your invoices, which helps if your payment isn’t due immediately. If you have any questions about invoicing or software, then please get in touch with me.