If you have a business, it’s important that you get paid quickly. Creating clear, accurate invoices that are sent out on time can help. Tax invoices also need to meet the requirements of the Australian Tax Office. Here are some tips on how to write a good invoice!
What do I include on an invoice?
You might type up an invoice, or use accounting software like MYOB to create an invoice automatically. However, there’s certain information you should always include on your invoice. This includes your business details, information about the item you sold, your payment details, and the customer’s details.
Your business and sale details
Your invoices should include your business details, such as your:
- business name (and trading name, if you have one)
- postal address
- web address, email address and phone number
- Australian business number (ABN).
Your invoice should also describe the product or service you’ve provided to the customer, the amount owing, and the date the money is due. Also include:
- the invoice date
- an invoice number
- a list of all goods supplied and amount due
- a GST amount, if it applies.
An invoice should also include payment details, such as:
- terms, such as payment in 7 days
- payment options, such as direct deposit, credit card, EFTPOS and cash
- direct banking details, including BSB and account number, account name, bank name and branch, and a reference number.
An invoice usually includes customer details such as:
- postal address, email address and phone number
- the name of the person who placed the order
- the customer’s purchase order (PO) number.
Tax invoices for GST purposes
If you’re registered for GST, you need to include certain information to create a valid tax invoice. For example, you must state on the invoice that it’s a ‘tax invoice’ and include the GST amount.
There might be other rules from the Australian Tax Office that you need to follow, depending on the amount of the invoice.
Getting paid quickly
To have invoices paid on time, try the following:
- send out your invoices on time,
- stay in contact with your customers,
- include payment options and details on your invoice, and
- make sure your customers know your payment terms and policies.
Following these tips will help you get paid faster, keep your cash flow healthy, and keep your business going strong.
- This article is adapted from the Business Victoria Resource Write an Invoice.
- Check out Business Victoria’s customer engagement letter template. You can adapt it to your business and send a copy to all new customers. The letter includes information about the product or service you provide, and about payment terms. Explaining this information to customers early on can reduce disagreements later.
- Visit the Australian Taxation Office (ATO) website to find out what you need to include on a GST invoice.