6 Essential Things To Include In Your Invoices

One of the most important parts of running a business is getting paid for the work you do. While some of that process is out of your control (you can’t force a customer to send you money after all), there are some things you can do to move things along. Mainly, making sure you include all the right information on your invoices so that customers have no excuse not to pay you. Not sure what you need to include in your invoices? Here are the 6 most important things.

Your Customer’s Details

Firstly, you need to include your customer’s information on the invoice. This will mainly be their contact information – the name of the specific person you’re invoicing and the company. You should always check the official company name is the one on your invoices – some companies will trade under different names, which can cause confusion during billing. You should also check which address you should be invoicing with the client- a division office or their head office. making sure all of this information is correct will ensure there are no hiccups in payment, and it removes one of the common excuses for late payment too!

Your Company Details

Your invoices should also include your own company information so that clients have everything they need for their own records. This includes:

• The name of your company
• The address of your company
• Your company logo
• All of the numbers required by the country you do business in. This includes your registered trade number, VAT number, GST number and EIN.

The Invoice Details

Now we get to the meat of the invoice, you’ll want to be certain you have this crucial information right. For starters, each invoice will need a unique invoice number so that both you and your clients can easily refer back to it if needed. You will also need to include details of the goods and services you have provided. Put descriptions of what you have provided or will provide, so that your customer knows what they are paying for. Break this down as much as you need to, with individual line items if required. Use the same language as you did in any quotes to avoid misunderstandings.

Payment Details

The most important part! Detail the prices for everything listed on the invoice and separate out any sales taxes you need to add so that the client has a clear cost breakdown. Then highlight the total amount due by making it bold and increasing the font size. You want to make this part as clear as possible. If you offer multiple payment options, be sure to include the details for all of these on your invoices. Offering multiple ways for clients to pay significantly increases the likelihood of payment, and the clearer you make this the better.

Either way, you need to provide payment details and instructions if applicable. You should also make the payment due date crystal clear so that there can be no misunderstandings. If your payment terms are 30 days, state that alongside the date payment will be due.

Customer Requirements

This depends on the customer and what their specific invoicing needs are. For example, some clients will want you to include a purchase order number or reference number on the invoice. Make sure you have left enough room for this.

Payment Terms

If you and your customer have agreed on certain payment terms, especially incentives for early payment or penalties for late payment, they need to be detailed here too.

That might sound like a lot but in reality, it can all fit on just one side of A4! By making sure your invoices contain all the correct information you can significantly reduce the number of late payments you have to deal with, as well as improve your business processes.

If you’d like more tips for issuing invoices correctly, sign up to our newsletter or just get in touch with the team today.