Your quote was accepted, and you've finished the job. Well done! It's now time to send your customer an invoice and receive payment for the work you've done.
Whether you run a limited company that sells goods and services, have a one-person company, or freelance, your invoice must include certain formalitiesand a number of legal notices such as VAT, company identification number and name, the sales price and a description of the services delivered, etc. Make sure you haven't forgotten anything with help from our guide!
Remember all the legal notices on your invoice!
Whatever your business sector (crafts, retail, construction, consultancy, etc), invoices are indispensable legal documents that attest that a job has been done. Once the service delivered, the professional must send the invoice to their client who in return must pay. The issued invoice must, according to the law of most countries, include the following (or risk a fine):
- Date the invoice was issued
- Unique invoice identification number
- Date the service was provided or the goods delivered (supply date)
- Detailed description of the services or reference numbers of the goods being invoiced (quantity,unit price before tax, amount due before tax, total amount due before tax and including tax, VAT rate applied)
- Applicable VAT rates
- Other specific mentions (discount, special offer, other costs, travel, transport, etc)
- Company information (registered name, address, billing address if different, contact information (phone number and email), company status and legal form, VAT identification number (when relevant) and if your country requires it your company registration number
- Information on the customer (name, address, contact information for an individual). if the invoice is being issued to another professional, include the company name, address, company identification number and VAT identification number (when relevant).
- Purchase order number which the customer may have supplied
- Payment due date
- Other information relating to payment (discount rate, penalty rate applicable in case of late payment, mention of fixed compensation fees in case of late payment)
Our tip: You can also include on your invoice the payment method which you included on your quote, as well as your bank account details if you'd like your customer to pay you by bank transfer.
Why entrust your invoices and legal notices to online invoicing software?
Starting or managing your own business is already time-consuming and as a professional your time is precious. Here are some of the advantages you get from using online invoicing and tracking software:
- Say goodbye to VAT calculation errors, missing legal notices, typos in the customer's company identification number or, worse yet, in the numbering of your invoices.
- An online digital invoicing tool will make it easier to chase late payments by taking into account the payment due dates.
- Simplify the management, archiving and filing of all your company's important documents. You can access digital copies of your invoices and quotes everywhere and at all times, which is mandatory practice in big companies and SMEs in most countries.
- No more losing your invoices and you'll save space and time as everything is digital (Never hear "Mary! Where's Mrs Smith's invoice?" ever again) and….
…. you'll reduce paper consumption. Think of the planet!