Create your customer invoices using this guide so you include the business, tax and sales information for fast payment.
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If you are registered for GST then the invoice must state that it is a 'Tax Invoice' and include the GST amount.
Setting up customer accounts for invoicing
Invoicing customers promptly and making payment easy is a good way for your business to maintain cash flow.
This process should begin with the first customer transaction. Use our below Customer engagement letter template as a starting point.
You should also contact the customer for all information required to set up their account, including business (and accounts department) contact details.
Business, customer and payment information for invoices
Your invoice should include information the customer needs to know to pay you on time and details for your own bookkeeping.
Business details to include
Invoices should include your:
- business name and if relevant trading name
- postal address, email address, website address, contact telephone and facsimile numbers
- Australian Business Number (ABN) or Australian Company Name (ACN).
When invoicing a customer it is considered standard to include the:
- customer's contact details including mailing and/or email address and phone number
- name of the person who placed the order
- name of the person responsible for paying the invoice. Addressing the invoice to the right person may help in getting faster payment
- purchase order (PO) number or contract agreement dates. A PO number is a handy reference when talking with your customer about the order.
The date you raise and send the invoice. This is especially important if your invoice has payment terms such as '30 days from invoice date'.
This is useful for your bookkeeping records, as a reference if talking to your customer or when following up unpaid invoices. You can add code to your invoices to help identify the customer, date
or job number.
Goods and Services Tax (GST)
The Australian Taxation Office (ATO) requires specific company and sales information to be included to issue a valid a tax invoice .
Amount due and description of goods
List the products or services provided. Itemising the invoice can help when referring back to the invoice at a later date.
To enable your customer to pay you promptly include your:
- payment terms, either the date you and your customer agreed upon as payment due date or the payment due date. For example, if the terms are 14 days from date of invoice and the invoice is sent on 1 May, then include the payment due date as 15 May.
- payment options, standard options are direct deposit, credit card, EFTPOS, cash
- direct banking details, BSB number, bank account number, bank account name and the name and branch of the bank and reference to be included in the transaction to identify their payment.
Using accounting software package invoices
If you are using an accounting software package such as MYOB or QuickBooks the invoices will be generated using information you have provided in your account set up. Most accounting software packages allow you to tailor the invoices to your needs.
Good accounting and invoicing processes for fast payment
To have invoices paid on time your business should:
- invoice in a timely manner. For recurring services invoice on the same date each month or at regular intervals so customers anticipate the payment. For goods and services invoice when the order is completed
- stay in contact with customers, call after goods have been received to confirm the arrival and that there were no issues. This step can also help to resolve any disputes early
- include your payment options and details on all invoices
- make sure customers are aware of the terms of trade and the business policies if payments are overdue.
Use our below Financial policy and procedure manual template as a starting point for handling customer accounts, payment terms and debt collection.