Follow US:

Practice English Speaking&Listening with: What's an invoice? | MYOB Help

Normal
(0)
Difficulty: 0

[intro music]

So whats an invoice?

When you make a sale, an invoice is used to document the goods or services youve sold

to your customer.

For certain sales, its 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.

Its up to you. But its 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

When What

And How.

Lets take a look.

Whos the invoice for? Add your customers 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 youve 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

youve provided to your customer, the quantity and price.

But its 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 youve 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.

Too easy!

And when youre happy with the details on the invoice, go ahead and send it to your

customer.

Use online invoicing to e-mail your invoices and youll have greater tracking options.

You can see if the invoice has reached its destination and whether or not its been

viewed.

This is really handy if you need to chase up outstanding payments.

And best of all, it shows you when youve been paid.

You also have the option to print and mail your invoice if thats what youd prefer.

And dont forget, when you record your invoice, your sales income is automatically tracked

along with any GST you need to report.

[outro music]

The Description of What's an invoice? | MYOB Help