Have you recently registered your eCommerce business? If so, congratulations! It's time to dive into one of the most critical aspects of owning a business, which is billing.
Don't worry if you're unsure how to write an invoice to bill your clients. There are simple invoices that can help you save time. They can provide all of the essential eCommerce accounting information you need to bill clients for your services. Consider them to be well-organised papers that are simple to comprehend and write.
The good news is that the technique is rather basic, and once you've mastered it, you can expedite the operation using a base template.
This article will run you through all you need to know about making an invoice.
Understanding What an Invoice Is
An invoice, also known as a bill or sales invoice, is a document issued by a business to document a transaction and request payment for a service or product given.
A well-designed invoice makes all the difference in getting paid on time and without complications caused by illegible information. In general, a well-made invoice can help avoid cash flow problems.
What Information You Should Include in Your Invoice?
Your invoice should appear professional and have all the necessary information. It should be designed to be simple enough for your client to understand and make the payment easily.
Here is some crucial information to include in your invoice:
1 - Your Company's Name
The most significant part of your invoice is the name of your business, so start there. You can also use your invoice to strengthen your brand identity by including your brand logo and design elements.
2 - Your Contact Numbers and Other Details
Don't forget to put in your personal details, such as your name, phone number and email address. If there are any questions about the invoice, your clients may contact you using this information. It also provides them with the option to contact you for future business.
Your client's contact information should also be included in a “Bill To:” section, which should contain the billing contact's name, phone number, email, and address.
The Date of Your Invoice
Always include the invoice date on every invoice that you send out. For both you and your clients, this will make submitting bills a lot easier. This also makes it more convenient to track down your invoices, especially if you make a lot of transactions with this client.
The Services or Goods You Provided
This portion will list down all the services or goods you have provided the client. This should include a description of the good or service, the quantity of goods or number of work hours, the subtotal for each item, and the total amount to be paid.
It’s also vital to include the due date for your invoice. This can help speed up payments and set expectations for payment deadlines.
The Additional GST
If your business is registered for Goods and Services Tax (GST), you must send tax invoices or customer accounting tax invoices for standard-rated supplies. Make sure to include your GST registration number on all your tax invoices.
Conclusion
An invoice is a fundamental document that helps you keep track of your business activities. It can help you organise your business and ensure all your transactions are appropriately recorded.
It's also the first step in your business payments and support. By adding the key information, you can make it easier for your customers to understand and make the payment on time.
If you find it hard to keep track of all your invoices and the information to put in them, you can also hire an accountant for an eCommerce business to help you. They can ensure that your finances and invoices are all sorted out.
Are you looking for an eCommerce accountant in Australia? The Ecommerce Accountant has years of experience in accounting for online businesses. Book a meeting today!