Key Elements to be Included in Your Small Business Invoice

Running a small business? You must be overloaded with duties. Among so many hats you wear as a small business owner, accounting might seem an uphill struggle, especially if you are not friendly with the number game.

Not just small business, but business of every shape and size require an invoice for timely payment and smooth cashflow. But for small businesses its absolutely a must. As an entrepreneur, you certainly need to have a professional invoice that conveys your message quite effectively and makes sure you get paid for your efforts.

No matter if you are creating the bill using online billing software or the traditional way, make sure your small business invoice includes all the key elements that make the bill self-explanatory and at the same time fully professional.

Here is the list of essential elements that you need to include in your small business invoice:

1. Company’s name and contact information:

This is the basic but the most crucial part of any invoice. Make sure at the very beginning of your invoice, you mention correctly and clearly your business name, contact details like phone number, email ID, address, website address etc.

2. Client’s name and contact information:

Just as yours, also include your client’s/customer’s name and contact details. Without the name and address of your customer, how will they recognise that it is their invoice? So it is very crucial to include client name, physical address, email ID, address, phone number and other necessary details.

3. Invoice number:

Every invoice should have a unique number as it will be easy for you to recognise later and also the payment and client-related to it. Most of the online invoicing software provides automated invoice numbering. The invoice number can be set chronologically or in any unique formatting style.

4. Invoice dates:

Don’t forget to mention invoice issue date as well as invoice due date if any. The issue date is really important to take further actions if the client fails to make a payment or does the late payment. If there is no specific date, then you can also mention like invoice payment due upon receipt or payment as soon as project completion or anything that is valid to your business.

5. A clear list of products and services:

Your invoice should have a clear breakdown of products and services offered by your business to that specific client. Example if you are selling a product then mention the item purchased, its quantity, cost per item and its final price.

In case of service, mention the service you offered, if you are charging flat fee mention it or the hourly fees. Everything should be clear to avoid further confusion.

6. Payment terms:

As a small business, you might offer specific payment terms rather than due date. So, it will be wise if you accordingly mention it on your invoice so the customers stay aware of it and you can prevent late payment.

You can also mention about the late payment fee, how much you charge and also about the payment gateway integration if you offer any so that the customers can pay instantly if they find it convenient.

Online invoicing software can be very handy for small businesses as it can save a lot of time, money and effort spent in invoicing. Some online tools also manage most of your accounting tasks.