Invoices: Getting it right

Why you should create an invoice for your customer or supplier

 

Invoices are essential to allow you to keep on top of your records and ensure prompt payment from your customers.

 

How you should prepare an invoice

 

Your customers or suppliers will get an impression of your business based on your invoices. This affects how much notice they take of your invoices – and how quickly they pay you. So your invoices should be professional, accurate and well designed.

  • Make sure you have the right figures:

Charging an inaccurate amount will make a bad impression and result in a lack of trust or credibility. To prevent this from happening, carefully track your hours or product sales. You can use time-tracking software or POS tools to do this. For maximum efficiency, these should link in with your accounting system so you avoid having to input the same information twice.

  • Send timely invoices:

Don't wait too long to send invoices or people tend to forget the work you did and may think you are overcharging. It's a good idea to develop a habit of invoicing as soon as you complete a piece of work or make a sale.

  • Go for electronic invoices where possible:

Some companies still prefer hard copies of invoices. But electronic documents are the way forward. They are faster to process, don't take up any space, and are easier to search for. They can also be created easily from within your accounting software. Make it clear to your customers that you'd prefer to send electronic invoices, but do give them an option.

The best ways to prepare an invoice are:

  • Number and date your invoice.

  • Include the customer or supplier's contact information on the left side of the invoice, below your header.

  • Write the amount you are charging.

  • Write what you are charging for, clearly describing the work you did or the product you supplied.

  • Total the quantities to create a subtotal.

  • Include any sales tax and discounts.

  • Then add the subtotal and the sales tax together (or subtract the discounts) to create the final amount. Write this in clear, boldface type so customers are in no doubt about how much to pay.

  • Detail your payment terms, namely, when you want to be paid. For example, you can say “due on receipt” or “due within 30 days of invoice date”.

  • Make it clear how you want to be paid by including what methods of payment you accept. This includes cash on delivery (COD), cash, cheque or credit card.

Online tools for invoicing

Creating an invoice from scratch each time is time-consuming and inefficient. It's also difficult to create error-free invoices manually. To make your job easier so you can get on with the rest of running your business, why not make the most of convenient online tools for invoicing?

With online tools for invoicing, you can create and manage your invoices from anywhere, anytime. Invoice maker is one of several mobile application tools that make accounting easier. It's efficient and user-friendly.

What is the most reliable invoice maker? Etax Plus Invoice Maker is a brilliant tool for creating and keeping track of your invoices. Here's why:

  • With Invoice Maker, you can trace all your invoices.

  • Etax Plus looks after your invoices – so you don't have to worry about them.

  • Etax Plus Invoice Maker is the safest place to keep your invoices. The SSL certificate of Etax Plus guarantees your files and information are kept in a safe place. All your information is electronically encrypted using the most secure, stable technology.

Manage your cash flow and ensure the profitability of your business with Etax Plus Invoice Maker.