Getting on top of your invoicing
One way to help your small business succeed is to get on top of your invoicing.
This means sending them in a timely manner, making sure they have all the essential information included and chasing them up when you need to!
When you’re running a small business or working for yourself as a contractor, getting paid relies on sending your invoice. And because getting paid, and on time, is essential to staying afloat, it’s important to make sure that you’ve got all the important information included.
Setting up your invoices correctly will ensure you get paid quicker.
One of the important aspects of invoicing is making sure your invoices are sent in a timely manner. Ideally you will be invoicing immediately a services is completed or a product ordered. At a minimum you should provide an invoice within 28 days.
Also, for high ticket items, consider asking for a deposit. If your service is ongoing or extended over a period of time then look at implementing progress invoices. This will help your cash flow.
What to include in your invoice
Your invoice needs to contain the following:
- 1The words ‘tax invoice’, ideally as a heading.
- 2Your business or trading name.
- 3Your contact details- these aren’t technically required for invoices for under $1000, but it’s a good idea to include them in case the recipient needs to get in touch.
- 4Your ABN or ACN.
- 5The date you’re issuing the invoice.
- 6An itemised list of what you’re invoicing for, including the price for each item or service. Make sure that you clearly indicate whether GST is included in the total price.
If you are using accounting software simply fill in the templates or you can see some examples of invoices on the ATO website.
A well set out invoice will make it easier for your clients and customers to pay you. Accounting software will make the job easier by providing the format for your business and increasing your efficiency.