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Invoice Freelance Template

p>As a freelance professional sending your invoices to clients is a critical part of the job. Invoices must be timely, consistent, and correct. For them to serve their purpose, they must contain certain pertinent information. Below are important features to include in your invoice.

Number Them

Ensure that invoices rest on a sequential numbering system. Skipping numbers raise suspicion with auditors and tax authorities. It is also important to keep records of wasted or cancelled invoices, according to John Falcon.

Operating Name

If your operation trades under a given business name, your invoices should have individual names and business name. You and the business are a single entity if you operate as a sole trader. This is opposed to trading as a limited liability company.

Value Added Tax

Ensure that you charge value added tax correctly. Note that a rate changes depending on government treasury whims and you have to change it accordingly. You need to understand how to treat entries on your invoice and which services are exempt.

Invoice Copies

You have to keep copies of every invoice you issue. According to this article, this includes those you have cancelled. Making electronic copies is fine, although this requires strong systems in place as backups.

Point of Tax

If you issue Value added Tax invoices you require to state its supply time or the tax point. This applies if this differs from its invoice date. Again, VAT invoices require issuing within thirty days from payment date if payment is in advance or its supply date.

Terms of Payment

Consider your terms of payment very carefully. Should you work with large clients, they could dictate their terms of payment to you. An example is settling forty-five days from date of receipt. Discuss payment terms with your clients to prevent surprises later in the day. This enables you to plan for your cash flows according to this article.

Reference or Order Number

Inquire from your clients if you require quoting specific reference numbers on invoices to them. Purchase Order Number is another name for these. This reference assists your client's internal allocation of specific projects to specific budget centers. This system often applies to large clients. Ensure you have correct reference numbers of your clients upfront to avoid payments delays.

Banking Details

Banking details are often forgotten during preparation of invoices. These allow for easier settlement of invoiced bills.

Keeping Records

You could be maintaining your bookkeeping system online such as Xero or Free Agent. If this is not the case, maintain an invoice log. It should cover client name, number, amount, invoice, and payment dates,and project details.

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