How to write an invoice
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How to write an invoice?
Cash flow management is fundamental to running any business, and getting your customers to pay you promptly is crucial. If you've just set up your new business and already started making sales, you'll need to send your customers an invoice.
But do you know how to write an invoice?
A professional, correctly worded invoice with a clear payment option can make all the difference when it comes to getting paid on time and in full. It also:
- provides legal protection for both your business and your customers
- makes it easier to prove your income should you be subject to an HMRC audit in the future.
When to send an invoice?
So, what is an invoice, and when should you send one? An invoice is a document that a business sends to their customers asking for payment after they've purchased goods or services. Invoices are different from purchase orders, which notify of someone's intent to buy goods or services. Invoices should also not be confused with receipts that acknowledge payment.
An invoice is a means of requesting payment from a customer and recording a sale.
Types of invoices:
What is the difference between a bill and an invoice?
What is the difference between a receipt and an invoice?
How iwocaPay can help
iwocaPay makes it easy to get your invoices paid sooner. Whether your customers choose to pay upfront or across three instalments, you'll get paid upfront every time.
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How to write an invoice — UK
Invoices don't have to be complicated. You can create a basic template in a document, or find a template online, which you can use repeatedly. However, keeping track of your invoices manually can be a challenge, especially as you build your customer base.Using an accounting software solution, like Xero, not only allows you to send invoices automatically but allows you to instantly reconcile payments and makes it simpler to keep track of your cash flow. You can also integrate iwocaPay and Xero, meaning that you can add flexible payment options to all of your invoices and make it easier for customers to pay.
What to include in an invoice
When you create an invoice, you must include some essential information otherwise it can result in a dispute or late payment. Knowing how to write an invoice for freelance work or other goods or services will help you build trust with your suppliers and see that you get paid on time and in full too. A good invoice should include:
- your company name
- your contact information
- the word 'invoice' in the title
- invoice issue date
- payment due date
- your invoice number
- name and address of the customer
- description of the goods or services you have supplied
- subtotal of each item, including quantity, rate and amount
- total amount due, including discounts and VAT
- your payment terms - which can be built-in with iwocaPay.
You can send invoices through an accounting platform like Xero or Quickbooks, or simply via email or even text. As long as all of the information is present, your terms are clear and you’ve provided your customers an easy digital way to pay or settle the invoice, you’re more likely to get it paid on time.
Collect invoice payments more easily with iwocaPay
iwocaPay takes all the hassle and risk out of getting your invoices paid. Just add an iwocaPay link to your invoices, and your customers can choose to spread the cost over 90 days (subject to approval). But you still get paid upfront, so it's a win-win for everyone.
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