If you’re a sole trader, a freelancer, a solopreneur or just dipping your toes in business, you should be invoicing for a few very good reasons.
Invoicing is key to getting paid on time, and the right amount. By sending your buyers or clients a professional invoice that clearly tells them how much to pay, when they need to pay by, and how to pay – you’re much more likely to actually get paid.
Plus, as your business grows, invoicing is hugely important in keeping your business compliant with the ATO. By keeping track of your invoices, you can tell the ATO how much money you have made and how much tax you owe.
Whether you use an Invoice or a Tax Invoice comes down to whether your business is registered for GST.
If you’re registered for GST, you need to use a Tax Invoice. If not, you can use a regular invoice – which does not say Tax Invoice at the top.
The main difference is that Tax Invoices are required to include some extra information on your invoices (though you will often find some of these on regular invoices, too). They include:
- The words ‘Tax Invoice’ prominently
- Your name and contact details identity
- Your ABN
- When the invoice was issues
- A brief description of the items sold, including the quantity (if applicable) and the price
- Any GST amount that’s payable
- The extent to which each sale on the invoice is a taxable sale
Invoice templates, such as these, are totally free and allow you to invoice your customers with confidence. They are a great way to invoice without having to start from scratch.
Click on either Tax Invoice or Invoice above to download your free template. Make sure you save if locally on your computer.
You can then open the PDF in your web browser or Adobe Reader. Pro tip: if you use Adobe Reader you can click below the Title to add your company’s logo!
As your business grows, you may want to start using online accounting software to get your business running a lot smoother and save time on paperwork. Learn about how okke can uncomplicate your business today!
Using templates takes the guess work out of crafting an invoice. Simply download the template and fill in the fields. Just make sure your carefully spell check and proof read the invoice before you send it out.
When it comes to Tax Invoices, the ATO has some extra information about what needs to be included.
How software can supercharge your invoicing?
More real work.
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Add a digital payment link to your invoices to let your customers pay in a click. With online payments, you can smooth out your cash flow.
Stop late payers in their tracks
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Keep everything in one place
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