As bookkeepers we see a lot of invoices and sometimes they do not have the correct information or can be confusing. I recently came across an invoice that had a due date which was seven days after the invoice date and then further down the invoice it had “Payment Terms Strictly 21 Days”. So which is it 7 or 21 days? If you want to be paid on time you need to be very clear on your payments terms.
Here is what the Australian Taxation Office (ATO) advises your invoices should contain:
- your business name
- your Australian Business Number (ABN)
- the words “Tax Invoice” if you are registered for GST, otherwise “Invoice” if not registered for GST
- an invoice number
- amount of the sale
- amount of GST
- nature of the goods or services sold
- date of sale
- date of document
- the purchaser’s identity or ABN (for invoices over $1000)
A couple of other details that would be helpful on your invoices for your customers:
- Your contact details, either a phone or email address – so that if your customer has a question regarding your invoice they can contact you when they receive it
- Payment terms and bank details – make it clear what your payment terms are and include your bank details
With this information included you would be more likely to get paid on time.
For more information you can check out the ATO website or contact us if you would like assistance setting up your invoice give us a call on 9754 6572.