So what’s an invoice?
When you make a sale, an invoice is used to document the goods or services you’ve sold
to your customer.
For certain sales, it’s a legal requirement and tax obligation to document the details
for your records.
Your customers may also request an invoice for their records as well.
They also help you build your brand and also improve your cashflow by telling your customer
when and how to pay you.
By creating invoices, you can keep track of your income and meet your GST obligations.
So do you need to provide an invoice to all sales?
Well it comes down to whether you or your customer needs a detailed record of the sale
and whether you need to keep track of customer payments for those who buy now and pay later.
Invoices are perfect for these.
If you use a point-of-sale software, only have cash sales, or just need to provide receipts
to customers, then you may not need to record an invoice in your software.
It’s up to you. But it’s good practice if you want to build a list of customers.
SO what do you need to include on an invoice?
There are four main areas. Who
Let’s take a look.
Who’s the invoice for? Add your customer’s details like their name, address, mobile number
and e-mail and their ABN or GST number if they have one.
Having this info on file can also help you build better relationships with your customers.
When did the sale take place? This is also known as the issue date.
Based on the payment terms you’ve set up, the payment due date is automatically calculated
and shown on the invoice.
What do you sell? At first glance this is where you include a brief description of what
you’ve provided to your customer, the quantity and price.
But it’s more than that. You can assign what you sell into categories and add GST
to the items you need to.
Your reports will then show you what you’ve sold, and what GST you owe.
And finally, how do you want to be paid? Research shows that you can improve your cashflow by
making it easy for your customers to pay you. So make sure you provide clear payment options.
Or better yet, give your customers the options of paying directly from their invoice.
And when your customers use this feature to pay their invoice, the payment details are
automatically entered in your software.
And when you’re happy with the details on the invoice, go ahead and send it to your
Use online invoicing to e-mail your invoices and you’ll have greater tracking options.
You can see if the invoice has reached its destination and whether or not it’s been
This is really handy if you need to chase up outstanding payments.
And best of all, it shows you when you’ve been paid.
You also have the option to print and mail your invoice if that’s what you’d prefer.
And don’t forget, when you record your invoice, your sales income is automatically tracked
along with any GST you need to report.