Disclaimer: The content of these articles is to be used as a general guide only. Professional advice should be sought before taking any action relating to the points discussed in these articles.

INVOICING

  What do you need to have on an invoice? Are some invoices easier to follow than others? Which invoices get paid first? Below are some minimum requirements for invoices.

1. Your company name and logo.

2. Your return address.

3. Contact details - ie phone, fax, email address.

4. The customer's company name and address.

5. Name of the person who placed the order.

6. Their order number.

7. Your invoice number.

8. The date.

9. The customer's account number or code.

10. Job number, if appropriate.

11. Invoice amount.

12. Description of goods or services purchased.

13. Code of goods or services purchased.

14. Your ABN number.

15. Details regarding GST.

  The best invoices I receive are those from telephone companies because they contain a lot of detail. Not only that, they spell out clearly on the front of the invoice when they would like to be paid. If you don't put your terms of payment on the account then you can hardly expect your debtor to pay you promptly. The terms need to be very clear, not hidden in a corner in small print. At Australian Credit Stationers, we always use a sticker on the account so that the payment terms are clearly visible. 
  The next biggest error on invoices is the amount. Check to see if it is the same as what was quoted. Have additional charges been added? If so, and if they are legitimate, discuss this with the customer before invoicing. Ensure that this is done correctly the first time, not only to facilitate early payment, but to enhance your company's reputation.
   How is the invoice total derived? Is there a unit price? Does the total refer to a number of items? If so, list them and their unit price. Is there  a delivery charge?
   What methods of payment do you allow? Are all options shown on your invoice? Do you accept credit card payments? If so, which ones? Do you offer payment over the internet? This now needs to be considered as this form of payment is likely to become more popular in the future.
  Finally, do you do anything else to facilitate early payment. One of the simplest things to do is to include an envelope with the return address. This only costs a few cents if you ask your customer to pay the postage.

This article is reprinted from Rentons' Business Tips No. 5
© Copyright May 1999 ACS