Updated: Dec 12, 2019
Regardless of what an e-commerce business offers, one of the most important parts of the business operations is an e-commerce invoice.
As a staple accounting document, e-commerce invoices are used to maintain permanent records of transactions in cases of refunds, returns, or exchanges. Without e-commerce invoices, online businesses can face some difficulties in various forms of customer stipulation.
Additionally, e-commerce invoices are also responsible for ensuring that the right amount of tax is paid. By issuing an e-commerce invoice, you can protect your business as well as your customers for every transaction.
Although it may sound simple enough, putting together an accurate e-commerce invoice can prove to be difficult when you don’t know what to put on the document. So, here’s a quick guide on what you should include in your e-commerce invoice:
1. The word “Invoice”
It might seem like an obvious thing to include, but some people tend to make the mistake of not putting the word “invoice” at the top of the document. To make it clear that the document is an official e-commerce invoice from your business, don’t forget to place the word “invoice” at the top.
2. A unique invoice serial number
Because an e-commerce invoice is an official tax document, it is only right to assign a serial number for every copy that you give for better tracking and tax filing after the transaction. The unique invoice serial number doesn’t have to be complex, as putting numbers one place higher than the last issued invoice will suffice. Additionally, you can start off the unique invoice serial number with the financial year wherein the transaction will take place.
3. Your official business name and any secondary names
Your document must also include your official business name and any other associated names (e.g., franchises) to certify that the e-commerce invoice is from your business.
4. Your contact information
Your e-commerce invoice should also include your contact details, such as your number, email address, and complete business address. Placing the location will clarify the area of taxation to ensure that you’re paying the necessary taxes to the right municipalities and governing bodies.
5. Any taxation and other business registration codes that your e-commerce business follows
Depending on your location and the tax territory where you conduct your business, it is necessary to add the identifying codes that you pay for on your e-commerce invoice. Certain codes, such as service tax, CST, and VAT must be included along with your registration codes for every specific tax.
6. The details of the person you’re selling to
An e-commerce invoice must be addressed to a specific entity to establish the rightful ownership or point of reception for a good or service. By listing the buyer’s details on the invoice, you can ensure the full trackability of the entire invoice for good measure.
7. The product or service description
For documentation and accounting purposes, you must include the name, size and type (if applicable), unit price, quantity, and total price on the final copy of the e-commerce invoice.
8. The terms and conditions related to the sale
Every e-commerce invoice that is given serves as an official document that a customer can refer to when they purchase a certain product or service. Every important term and condition related to the sale much be affixed to the back of the e-commerce invoice form to confirm that the buyer and seller are held responsible for their respective obligations.
Having an accurate e-commerce invoice can ensure that your business’s accounting, legalities, and taxes are in check, along with customer satisfaction and security. By piecing together your e-commerce invoice with the above details, you can ensure that every transaction can be conducted as smoothly as possible without having to run into any problems along the way.
If you’re looking for an e-commerce accountant in Australia, get in touch with us today for a free consultation!