Create understandable invoices that get paid and contain the right business details. This guide offers a practical starting point, not a substitute for specialist advice.
1. Check legal invoice requirements
Requirements differ by location and tax registration. In the UK, invoices commonly need unique numbers, business identity, customer details, goods or services, dates and appropriate VAT information.
2. Describe the work clearly
Use product or service descriptions, quantities, agreed rates and an understandable subtotal. Separate tax from the pre-tax amount when required.
3. Add payment instructions
Include due date, accepted payment methods and payment reference. Verify any bank details carefully before sending.
4. Send and track the invoice
Record when it was sent, its due date, when reminders went out and when payment was received. Do not treat an unpaid invoice as spendable cash.
5. Keep your records
Retain invoices and related records for the period required in your jurisdiction. Review your accounting setup when tax or VAT obligations change.
Put it into practice
Use the tools below with numbers from your own business, then revise your assumptions against real results. Keep a record of the decisions you make and why.