If you’re making and receiving business payments domestically or internationally, then you’ve probably encountered a business invoice. Although it might seem like a minor detail, business invoices play a significant role in ensuring you get paid for your goods and services.
There are several types of invoices, each with specific uses, such as commercial invoices, tax invoices, credit invoices, and proforma invoices. It’s essential for businesses to understand the required information for business invoices and common errors to avoid. Read on for our comprehensive guide.
What is a Business Invoice?
A business invoice is a receipt detailing the products or services delivered to a customer. It includes the total amount due and the required payment method. Besides prompting payment from your customer, a business invoice is a useful tool for record-keeping.
When Do You Need to Use a Business Invoice?
Generally, a business invoice is used when selling products or services to customers.
Did you know: According to UK law, if both you and your customer are registered for Value Added Tax (VAT), you must provide an invoice whenever you sell them a product or service.
Creating Your Business Invoice
Now that we’ve covered what they are and when to use them, let’s dive into how to create your business invoice. Here’s the necessary information to include and the key steps to remember.
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Gather Necessary Information
First, collect all the necessary information before creating an invoice, such as details about your business and client, and the products or services provided. Include:
- Your business name, address, and contact details.
- Your client or customer’s name, address, and contact details.
- The invoice date.
- Due date.
- A description of the products or services provided.
- Quantity, unit price, and total for each item.
- Any applicable taxes, discounts, or additional charges.
- Payment methods.
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Select an Invoice Template
Choose an invoice template that aligns with your business style and branding, or use invoicing software with built-in templates. For inspiration, here’s our commercial invoice template.
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Filling Out the Invoice
When filling out the invoice, ensure you do the following:
- Calculate total amounts, including product costs, taxes, and any other fees.
- Double-check details such as provider and client information, product or service details, and payment terms to reduce errors.
- Include any special terms or conditions, such as discounts for early payment or penalties for late payment.
- Integrate a backup process for record-keeping every time an invoice is sent or received.
Once you’ve filled out your invoice and checked all the information is correct, it’ll be ready to send. Here’s what it should look like:
Tips for Faster Payments
When you send or receive an invoice, payments may not always be instant. For international payments, processing can take up to five working days, which can hinder your business. Fortunately, with an 8S Money international business account, you can make fast international payments to over 190 countries, with some being same-day. SWIFT payments are only $1 to send and $0 to receive, unlike other providers who charge up to $25 per transfer.
If you’re ready to send and receive fast global business payments, 8S Money can help. Start your application process today and be approved in as little as 15 minutes.
Besides slow payment processing times, other factors can delay invoice payments. For example, missing important details from the business invoice. Here are our top tips for quicker payments:
- Always ensure the payment date is indicated on the invoice.
- Clarify the terms and conditions of your invoice, such as late fees.
- Include a payment due date or ‘deadline’ (e.g., within 30 days).
- Thoroughly check your invoice for typos.
- Provide multiple payment methods (e.g., credit cards, PayPal, electronic payments).
- Use automation tools to contact clients with overdue or upcoming payments without manual intervention.
Secure Your Payments with 8S Money
If you’re ready to optimize your business payment operations, 8S Money can help. With a global business account, our clients can:
- Reach global markets with ease.
- Send and receive fast international payments at low cost.
- Be confident that all payments are protected (8S Money is FCA, DFSA, and CSSF regulated).
- Keep track of invoices and expenses with our intuitive integration with the Xero platform.
- Much more.
Join the thousands of clients already sending and receiving speedy international business payments with our business accounts.