![]() Here are some examples of invoice formats: But it’s important to consider your company’s growth when thinking about a format to choose. If you’re just starting out, you won’t have sent many invoices, if any at all. You may choose to add the date, year or an abbreviation of the company the invoice is being sent to so that it can be easily and instantly identified. If you choose an alphanumeric format, the letters in the invoice should stay the same, only the numbers should increase. It’s up to you how you format your invoice codes and they can be a combination of letters, numbers and specials characters, such as hyphens and slashes, but legally they should never contain gaps. It’s a key part of every invoice – without an invoice number, an invoice is not considered a legal document.Īn invoice number is used to identify a transaction so it’s key that your invoice numbers follow a unique and consistent format. The tax point, or time of supply: this is the date that the transaction took placeĪn invoice number is a unique code that’s assigned to each invoice sequentially and systematically.You can read more about VAT invoices on the gov.uk website, but as a rule of thumb, you’ll need to add these bits of information to your invoice: If you’re creating a VAT invoice, you’ll need to add some extra information. How the recipient should pay, including a due date for the payment.The date the goods or services were delivered.Registration number, if you’re a limited company.Company name and address (this will be your registered name and registered company address if you’re a limited company).No matter the type of invoice you’re creating, each one should have these 10 pieces of information: Any mistake or omission could lead to late payments or struggling to request payment if information is missing. Getting the right information on an invoice is super important for making sure you get paid on time. ![]() Recurring invoice: if you regularly provide the same goods or services to the same customer either through monthly payments or a subscription, this is where a recurring invoice comes in handy.VAT invoice: if you’re a VAT-registered business, you may send this type of invoice to charge or reclaim VAT on the sales you make or buy.This type of invoice is given as an estimate and used when the terms of the sale are subject to change. Proforma invoice: this is similar to a standard invoice, but it’s sent to the buyer before the goods or services have been provided.Commercial invoice: for businesses that buy and sell goods overseas, a commercial invoice details the cost for customs officials to decide if import duties need to be paid.The flexible format of a standard invoice makes it easy to adapt to many industries. Standard invoice: this is the most common type of invoice, which records a sale between a buyer and seller.There are many different types of invoice, but here are the most common types of invoice used by freelancers, small businesses and contractors: Once downloaded, you can customise and populate these with your own information. If you need to create an invoice, but you’re not sure where to start, we’ve created a pack of blank templates in three different formats – PDF, Word and Excel – including options for VAT-registered businesses. Invoices can also act as a legal document in the case of overdue or missing payments, as they are a binding agreement between the seller and customer.Īlmost any industry can use an invoice, but they are mostly used by service-led industries and consumer industries that buy large quantities of stock. Invoices are a key document for bookkeeping and accounting – they’re required as proof of income for tax purposes. And it will usually include the date of purchase, the quantity, the price and the payment terms. It shows a break down of the purchase, usually through a detailed, itemised list, of services or products that have been supplied. What is an invoice?Īn invoice is a bill that requests payment and records a transaction between a seller and buyer. ![]() You’ll also find a downloadable, free invoice template that you can edit with your own business information. ![]() Whether you’ve never made one before or you’ve been doing business for a while and want to double check your invoices are correct, this guide runs through what they are, the various types and how to make one. Making and sending invoices is one of the less glamorous (but arguably most important) parts of running a business. ![]()
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