Invoice Templates | Understanding Invoices And Invoicing
Understanding invoices and invoicing
Invoicing that is accurate, professional and easy to read is important for three main reasons.
Firstly, clients need to relate the amount you’re charging to the work you’ve done or the products you supplied. If they can’t, they’ll raise queries, and you won’t get paid.
Secondly, you may have to produce copies of your invoices for HMRC for tax purposes.
Thirdly, a well-designed invoice templates will help you get paid on time and keep your cash flow in good shape.
Here’s a number of free invoice templates for you to download – each can be customised to your own company, and we’ve even left space for your company logo.
If you create your own invoice layout, keep it simple. Put the word ‘Invoice’ prominently at the top. This shows clients that, unlike a statement or a receipt, action is needed.
Your invoice templates
Here’s what else to include:
- Your name / company name – if you run a Limited Company, show the name as it appears on your certificate of incorporation and include all trading names. It may also be worthwhile including your Company Number.
- Your address and contact details – make it easy for clients to raise queries.
- Your client’s business name and contact address – for their tax purposes.
- Unique invoice number – a requirement on all invoices, allowing you to keep track of when payments are made.
- Description – be clear what you’re invoicing for – attach a breakdown on a separate document if necessary.
- Your client’s purchase order (PO) or reference – some clients issue POs or references to help them verify your invoice.
- Invoice date – you and your client will need this for tax purposes.
- The amount – show a pre-VAT sub-total.
- VAT – if you’re VAT registered, show the VAT amount beneath the sub total – also, make sure you include your VAT number on your invoice templates.
- The total amount – the subtotal plus VAT.
- Your terms – if you agree specific payment terms with your client, show them here.
- How to pay – on every invoice templates include your bank account number, sort code and who cheques are payable to. If you accept payment by PayPal or WorldPay, give clear instructions.