A Guide to Invoicing
There have probably been occasions for some of you when you have experienced cash flow problems due to delays in getting invoices paid. A simple thing like ensuring that invoices include all the necessary information could prevent this.
An
invoice requires several parts in order to be accurate and professional, many organisations will
not pay invoices that do not meet this standard:
- The word “Invoice” should be placed in large print at the top, centre portion of the paper.
- The invoice should include the name and contact information of the business doing the billing. This ensures that the customer has the information necessary to send payment.
- The name and contact information of the company or individual being billed should be listed.
- The invoice should contain information explaining what the bill is for.
- Some customers/clients require a purchase order number to be quoted on all invoices (this is the case with the London Borough of Ealing and is what causes the biggest delays in getting invoices paid!)
- If the payment amount was a flat fee agreed upon beforehand, this should be listed on the invoice. If, on the other hand, the arrangement was a hourly fee, the number of hours billed should be included on the invoice. It may also be beneficial to indicate the dates on which services were provided.
- At the bottom, the total amount owed for the services should be listed. This portion should be clearly marked as the total amount due in order to avoid confusion.
- In order to help keep track of invoicesinvoice should also have a unique sequential number (For example 001/08). and to help the customer/client keep track of what he or she has paid, the
- The date the invoice was sent should also be included near the invoice number.
- The notes section can be used for anything from payment details to important information to your customers.
