• New Wave Accountants

Making an Effective Invoice Template for Your Business

Do you have a professional invoice for your business? A sloppy invoice can reflect poorly on your business, but it can also result in delayed payments.


An invoice is not just a requirement for taxes. This document legitimises your business and helps you get paid. Invoices state the goods or services provided along with the sum due for those goods or services.


Having professional and well-recorded invoices also helps your business accountant later when filing your taxes.


The Australian Taxation Office (ATO) requires specific details within your invoice depending on your business structure and forecast turnover. To make sure that your invoice is readable for your customers and abides by the ATO requirements, there are invoice templates you can download online.


You can also use invoicing software or create your own invoice template through Paypal, Excel, or even Microsoft Word.


In this article, we will run you through everything you need for a professional invoice.


What Should You Include in Your Invoice?


If you are making your own template or using a template online, make sure it includes the following:


  • Heading: The word "INVOICE" should be typed in large letters centred across the top of the document to indicate that the customer is looking at an invoice instead of a receipt. You can include your business logo next to this header.

  • Customer's Name and Address: This is the name and address of the company or individual customer who will make the payment.

  • Company's Name and Address: This is the person or company getting paid, which is you.

  • ABN and ACN: The Australian business number (ABN) and Australian company number (ACN), if you have one, should be in your invoice.

  • Goods and Services Tax (GST): If you charge GST, you should issue a tax invoice that declares the amount of GST that was charged. For businesses that don't charge GST, the invoice should clearly state, "No GST has been charged."

  • Itemized List of Products or Services: For products, this should include the name, quantity, per-unit price, and total price typically in columns on the page. For services, this will include the project's name, a description of the work performed, and the hourly or flat rate for the service. If you charge an hourly rate, the number of work hours should be added to the invoice.

  • Issue Date: This indicates the date the invoice was issued and the date the service was completed, or the date the product was delivered.

  • Invoice Number: This is not required, but it helps to keep your invoices organised. If you are a large organisation, you may have complex billing systems for your accounting. These often need invoice numbers or codes.

  • Payment Terms: This indicates when the payment is due. Invoices typically have a 14-day term which means the customer needs to pay within 14 days, or they will be charged later fees or penalties.


Tips for Successful Invoicing


Although a professional invoice will encourage customers to pay on time, there is always a chance that you wind up with overdue invoices. You can help by indicating the payment options clearly in the invoice, having a receipt confirmation for email invoices, and frequently following up to remind your customers to pay.


Conclusion


An invoice is essential for any business to ensure you get paid and make it easier when filing for taxes. Make sure your invoices are clear, abide by ATO requirements, and are well-documented.


Are you in need of bookkeeping services on the Gold Coast to help you manage your accounting? We at New Wave Accounting provide end-to-end accounting and bookkeeping to help you grow your business. Send us a message to take your business to the next level.


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