If you give your customers credit (and most businesses do), it’s important to get your invoicing and customer payments systems in order. The obvious benefit is to aid cash flow and it is the first step to good credit control and fewer bad debts.
Some while ago, I posted about some basic details that need to be included on a sales invoice. In addition, if the business is a limited company, the sales invoice must include:
- the correct full company name (as written on the certificate of incorporation)
- any “trading as” name or business name.
- the names of the directors may also be included – but it is a case of naming all the directors or none at all.
Sole traders must give:
- the business name, if the surname is not being used.
- an address.
If the business is VAT registered, the VAT number must also be given.
It’s also important to send the invoices out as promptly as possible, particularly at month-end when many companies have a “cut-off” point and invoices received later are processed in the following month, resulting in later payment.