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Preparing an invoice

If you have recently set up a business, or want your invoicing system to be slick and simple to use so you know exactly where your finances are, Select Factoring are here to help.

The basics that should feature on the invoice are:

  • Your company name
  • Your company address
  • Your company telephone number and email address
  • Your company number
  • Your company VAT registration number (if VAT registered)

Each one of your invoices should feature a unique number or a letter and a number. A common way of sorting invoices is to prefix the number with the letters from the clients names, so if it was to Select Factoring, you could use SF001. Number ensure the invoice system is in date order, and if you need to call up an invoice to check payment or details you can easily find the invoice using this system.

You should also include dates on the invoices, the date the invoice was raise and also the date the invoice should be paid for. Unless your company has specific payment terms, the general rule of thumb is 30 days, after that you are in a position to charge interest on any unpaid invoices.

Fees and charges need to be set out clearly, unit prices, how many units and the sub total cost, plus the net total and if you are VAT registered the amount of VAT, then calculate your gross total.

Payment terms should be set out so clients can see how many days they have to pay the invoices and how they should pay it, this could be by bank transfer, cheque, pay pal or however you deem the best possible way. If you wish to have money transferred into your bank make sure you include your account details and sort code. Also reiterate the payment terms in this section i.e. 30 days.

Finally you have an invoice to post or email to a client. Sometimes its preferable to post with a signed for system so you know the invoices has arrived safety and not been lost.

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