A professional-looking invoice not only helps to legitimise your business, it helps you to get paid.
What is an invoice?
An invoice is simply a statement of goods or services provided and a statement of the sum due for these. The Australian Taxation Office has requirements for the details that must appear on an invoice, some of which depend on your business structure and forecast turnover.
You can download our free invoice template or create your own invoice using the following guidelines:
Invoice Template Checklist
The word “INVOICE” should be in large letters, centred across the top of the document.
Payer’s Name and Address
The company or individual customer who will be making the payment should be listed, along with their mailing address.
Payee’s Name and Address
The name of the person or company being paid (that’s you!) should be listed, along with your mailing address. Your email address will also suffice in place of a mailing address.
ABN and ACN
Every invoice should state your Australian business number (ABN). You should also include your Australian company number (ACN), if you have one.
It’s important that your invoice states whether or not it includes GST. If you charge GST, you must issue a tax invoice that clearly states the amount of GST it includes. On the other hand, if you’re not charging GST, you’ll need to issue an invoice that clearly states “No GST has been charged”.
Businesses generating less than $75,000 of income per year are exempt from charging GST.
Itemised List of Goods or Services
Depending on the type of work that is being billed, a description of the work that was done should be listed. For example, if the invoice is for a certain product, the product name, quantity, per-unit price and total price should be listed on the invoice, typically in columns that run vertically on the page.
If the invoice is for services (for example, the completion of a design or writing project), then the name of the project, a brief description of the type of work performed and the hourly or flat rate should be listed. If it is an hourly rate, the number of hours worked should be included. If payment is per piece, each piece completed should be listed separately.
Underneath the listing of products or services being billed, there should be a clearly marked invoice total.
It’s important to include the date the invoice was issued, as well as the date(s) of the work completed or when the products were ordered or delivered. You can discuss this preference with your client and / or business to make processing easier for both of you.
An invoice number is not generally required, but it may help you keep invoices organised. Larger organisations often have complicated billing systems that may require an invoice number or code. Remember to discuss this with your client before submitting your invoice. No matter which system you use, make sure that the invoice number goes up incrementally each time a new one is sent.it’s important to include the date the invoice was issued, as well as the date(s) of the work completed or when the products were ordered or delivered. You can discuss this preference with your client and / or business to make processing easier for both of you.
You should always state the date when payment is due. Most invoices have a 14-day term, meaning they must be paid within 14 days to avoid late fees or penalties. You can establish your own payment terms (from payment on delivery to 30 or 60 days), depending on your type of business and your customers.
To create an invoice template and send invoices with ease, purchase QuickBooks Online to get started.