One of the most important things you need to pin down right at the start of running your business is how you are going to earn money from your skill or product, as you could be the best salesman in Britain, but if you don’t keep track of your bookkeeping and accounts then you could just end up working really hard for nothing.
If you provide a customer with a product or a service in return for money or a promise to pay, you need to give them an invoice (bill) by law if both you and the customer are registered for VAT ( a business to business transaction). (Source : HMRC Website ) An invoice is not the same as a receipt, which is an acknowledgement of payment.
An invoice needs to include certain information such as
- how much the customer needs to pay
- when the customer must pay
Invoice must also include
- a unique ID number
- your company name, address and contact information
- the company name and address of the customer you are invoicing
- a clear description of what you are charging for
- the date the goods or services were provided (supply date)
- the date of the invoice
- the amount being charged
- VAT amount if applicable
- the total amount owed
We have collated a fact sheet of 10 points you need to consider before choosing how you are planning to keep control of your invoicing. Many of the points can’t be ignored due to the legislative hoops you need to jump through when you work for yourself – like self-assessment tax returns, company returns, VAT returns and payroll records – but if you take a look at the factsheet then have a consultation with Alison at Silicon Bullet Ltd then we can get you started on the right track and find you the right tools to help you run your business.
To request the invoicing factsheet then email email@example.com .