The art of invoicing

Posted on Sep 3rd, 2010 | Cashflow

Invoicing clients is a relatively simple process for freelancers, contractors and small businesses. It’s a process which has been made even simpler thanks to online technology which helps draw up invoices automatically.

More about that later.

Invoices are usually a one-page document used to bill a client or customer for the product or services that you’ve provided.

Information which should go on an invoice includes:

  • Your company name
  • Date of invoice
  • Name and address of client being billed
  • Invoice number
  • The amount being billed (the cost of your service) – plus the VAT you would need to add if you’re a limited company
  • The period for which you’re billing
  • The number of days you are billing for (if a service)

Or here’s a very basic template featuring fictional characters and companies:

When payment becomes late

In some industries, it is customary for clients to pay before the end of the month which follows the invoice month, leaving a possible credit period of up to 60 days. When there isn’t an agreement or custom in place, then the law stipulates a default credit period of 30 days.

The credit period begins either on the day the work is completed (or when the goods are delivered), or the date when the customer receives a notice of payment due – whichever of these is the latest.

Invoicing made simpler

Rather than drawing up individual invoices, Crunch’s online invoicing system allows you to automatically draw up invoices. Simply type in the relevant figures, select your client via a drop-down menu, let the system automatically calculate any VAT due… and the invoice appears before your eyes neatly formatted and ready to send at the click of a mouse.

As one irritating creature advertising price comparison services would say: simples.

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Written by Crunch Accountants

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