![]() This is a legal requirement for all businesses. You may be able to automate some of this process with the right business software or tools from your financial institution, such as our automated bank feeds.įinally, make sure you keep all your business records – including your invoices – for five years. Keep in contact with your customers so you can stay on top of any issues that come up, and follow up any invoices that aren’t paid on time. You still need to track the progress of your invoice until you receive payment. Invoicing doesn’t stop when you issue your invoice. Step 6: Keep your business records up-to-date For example, you may agree to send an invoice every month, or after delivery of certain key services (like a draft or prototype). If you expect to supply ongoing services to a customer, you may negotiate payment milestones. For example, if your business is registered for GST and your customer asks for a Tax Invoice, you must provide one within 28 days.įor simple invoices, or invoices under $82.50, you can usually send the invoice once you supply the goods or services, or whenever you’ve agreed to send your customer an invoice. Tax invoices come with some extra inclusions and obligations. Step 5: Know how often to send your invoices If you’re a CommBank business customer with an eligible Business Transaction Account, you can use CommBank Invoicing to generate invoices directly from NetBank. Some business software applications generate invoices automatically, and will also help you track your payments back to your invoices. Step 4: Decide how to send your invoicesĮlectronic invoicing (e-Invoicing) is an increasingly popular option for small businesses. If you’re not sure how to charge GST for your goods or services, you can use the handy GST calculator provided by the Australian government. If you’re supplying a mix of GST-inclusive items and GST-exclusive items, then you need to ensure your invoice indicates the tax for each item it applies to. GST does not apply to all goods and services. Include the GST as a line item for each individual good or service.Include the total price of the goods or services, with a statement that indicates ‘all prices include GST’, or.Simple invoices don’t require tax information, but a Tax Invoice needs to include the GST amount for the goods and services you’re supplying. Step 3: Understand how to include tax information Even for smaller invoices, it’s good practice to always include your customer’s name on your invoices.įor more detailed information and some examples of invoices, check the Australian Government website for businesses. For goods and services totalling more than $1,000 (including GST), you’re also legally required to include the name of the person or company making the purchase from your business. Your payment terms form part of your sales contract with your customer, and are subject to contract law. Your debt collection policies, if relevant.The deadline for payment, either the date by which you expect payment, or the number of business days your customer has to pay.Your available payment methods, such as your bank account details for direct deposits, and any other payment methods you accept, including credit card payments, cheques, or money orders.Your invoice should also include your payment terms, which are: A brief description of the goods or services, including the quantity and unit price (if applicable).Your Australian Business Number (ABN) or Australian Company Number (ACN).A clear label that indicates the document is an Invoice (for simple invoices) or Tax Invoice (if you’re registered for and charging for GST).Regardless of whether you’re writing a Tax Invoice or a simple invoice, there are some inclusions all invoices require. Step 2: Make sure you include these invoice requirements If you’re not sure whether to register your business for GST, check the advice from the Australian Tax Office. So even if you’re writing a Tax Invoice, make sure you understand when to charge GST and when to avoid it. Remember that not all goods and services are subject to GST. Not registered for GST: you can write a ‘simple invoice’ (or ‘regular invoice’), which doesn’t need to include the GST for each item.Registered for GST: you need to write a tax invoice and include the GST for each applicable item.The invoice you use depends on whether your business is registered for GST (Goods and Services Tax). Step 1: Know which type of invoice you need ![]() Here’s what you need to know about invoicing. Whether you write your own invoices or use a template provided by your financial institution or business software, it pays to understand your obligations and inclusions under Australian tax laws.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |