Every self-employed individual has to go through the phase of billing their customers after the completion of their work. In order to do so, invoices are sent to provide an estimate or the total required to be paid by the clients.
These invoices help in maintaining the report of every business transaction and also, more importantly, to procure necessary details for tax purposes. Even for small business owners such as self-employed entrepreneurs, it is necessary to maintain such invoices for many growing needs.
From organizing payments to helping in regulating proper logs and pending debts, invoices provide the necessary means to make your work as easy as possible.
Instructions to be followed in making an invoice: Whether it is professional or informal, there are some guidelines in filling out invoices. Starting with the logo or the company name, it is prudent to make it clearly visible with good print quality. The procedure then continues with the name, address, and contact information (email, telephone) of both the parties involved in the transaction. This usually helps in setting up good communication in the possibility of any confusion or clarification.
Then comes the part where you include the tax ID or GST registration number depending on which you use and also the unique invoice number for proper filing of records. The important part of providing the details of the products or services rendered along with the amount corresponding to each.
This step requires adequate attention as you have to be precise on the details of work to avoid any misinterpretation by the customers. Adding the total amount including taxes, reveal the final sum as well as the due date of the payment. Do not forget to mention the date of the invoice and the delivery as well. Writing a thank you note for the customer would add a nice touch.
Digital application of invoices: The days of manually writing down invoices are long gone; with new software and accounting programs one can simultaneously create invoices along with various other tasks. These various software programmes have helped in revolutionizing automated accounting.