What is an Invoice?
Invoices are documents that a business usually issues to its customers, these usually ask the customers to pay for goods or services that the business has supplied to them. Invoices can be issued either before or after the goods or services are supplied. All companies invoices are different but all invoices must company with certain requirements that are laid out by the HMRC.
An invoice is a legal document and as such, if an incorrect invoice is issued, it should either be cancelled with a new invoice issued or a credit note should be issued to correct the invoice. The incorrect invoice should not simply be deleted from the business’s records, it should be held to ensure a clear record of all transactions; whether they were completed or not.
What should I include on an Invoice?
There are a number of things that should be included on your invoice, what needs to be included depends on your types of business. The information needed to be included on invoices varies for non-VAT registered companies, VAT registered companies, sole traders and limited companies; your accountant or HMRC will be able to provide you with a full list of the information that needs to be included.
Company Information
When creating an invoice it needs to contain company information, this is generally your address, trading name, and contact information.
Price
Invoices should include a breakdown of the prices or services, that a customer has purchased. As well as a broken down cost list, it should also include the overall cost of the invoice.
Description
To avoid queries from customers, invoices should be as detailed as possible. This should be a thorough breakdown and detailed description of the services or items that has been purchased. Having clear information can help to avoid any customer queries, meaning they pay quicker as they know exactly what they’re paying for.
Payment Information
Some of the most important information to include is how you can be paid, this can include bank account details or other payment methods such as phone, card, cash, or through PayPal or online payment portals.
Branding
Your invoice is a document sent from your business, so it’s important to make sure it reflects your branding. This can be anything from colours, logos, fonts or wording. For example, if you have a fun brand, make sure your invoice isn’t like a legal document. Invoices are as much as important part of your business as anything else, so be sure to make sure your invoice is branded and conveys this.
Uses for Invoices
Invoices are used to request payment from buyers keep track of sales, help control inventory and facilitate delivery of goods and services. They can also be used to track expected future revenues and can also manage and develop customer relationships.
Not only can they be used for sales and inventory purposes they can be used a promotional item, to help push any discounts or special offers, that you might currently have on. Invoices are used by many different industries including retail, plumbing, car repairs and many more.
How to create an Invoice
Invoices aren’t the easy item to create on your own, most invoices are created through the design and print industry. Using a professional printer, can ensure your invoice is designed with all the relevant information your need and it also gives you the ability to fully customise it around your business.
An invoice is an extension of your business, so through having a professional looking invoice, you are creating a better image for your brand. Most invoices come in the form of NCR Invoice Pads, which allows you to easy duplicate the information you need, as many times as your need it. For example a 3 sheets NCR invoice pad, could give you a copy, the customers a copy and one as a spare.