You would often overhear accountants complaining about the fact that generating invoices and keeping its records is a task that they refrain themselves from. Even though they find it time-consuming, they are aware of the fact that a good invoicing process saves a business from financial confusions, and there is a smooth operation between the management as well as the clients to whom a sale is made. It is a record for the transactions made and thus helping in maintaining an account of the profits and losses that the company has to face each year.
If you have recently started off with a business of your own, you would have the necessary knowledge on the aspects of it. You would also know about the basics of invoicing and therefore here are a few tips that could enhance your knowledge on what to include in an invoice and what purpose does it serve.
- Check for the seller’s information - You being the seller would have to by all means mention your contact details in the invoice. Details such as office address, phone numbers and email ids should be explicitly specified in the invoice in case the buyer intends to get in touch with you for clarifications or future correspondence.
- Cite the buyer’s contact details – While you have their details mentioned in the invoice, it is a formal indication that the invoice is exclusively for them. This can come to use especially when there are any legal allegations on you if any in the future.
- Mention date and the payment conditions clearly – A date specified on the invoice would allow both parties to make references on the particular sale with ease, and there are no confusions on both sides when there is a record that is to be made. You could also consider mentioning the terms of payment like the deadline for the last day of payment receipt. This could make things clear for the buyer to remember about the payment.
- The description of the sale – Whether it is a product that is sold or a service provided to the buyer, it is essential for you to mention a detailed description of the sale along with the quantity and the price of each. If there is more than one sale, you should consider mentioning each of them separately and segregating the details associated with it to make things clear for the buyer when they receive it.
- State tax details clearly – Whether it is the additional charges levied for handling or the general taxes for the sale, the breakup and the details should be clearly mentioned that can allow the buyer to have a clear picture of what they are paying for.
