While preparing an invoice, an individual should know what information needs to be on an invoice. When dispatching an invoice, you should display clearly the word invoice on your document. Along with this, the following information should be included:
- Distinct identification number.
- Name, and full address of the recipient you are invoicing
- Name, contact details, and address of your company
- A clear explanation of your charges
- Supply date of the services and the goods provided
- Invoice date
- The charged amount
- If registered, the amount of VAT
- Payment terms
If it belongs to a sole trader, and a VAT registered company or a limited company, then you should also give certain details on any invoices you issue.
Along with the above information, the following information is also useful for including on the invoice:
- Fax or telephone contact numbers.
- Email address of the company.
- The number of customer’s purchase order – by this they will have an idea of which purchase order is this invoice related to if they are making use of a management order system.
- Include the details of the payment ways including the details of bank account.
If you have registered for VAT, the following must be included:
- Registration number of your VAT.
- The total amount of the charged VAT on the invoice and the amount of rate if the VAT applies to all the terms on the invoice.
If you have registered for limited company, you should include the following details:
- Number of your company.
- Full address of your registered company.
Note: The limited companies can include the director’s names on their invoices.
A sole trader should include the following information on its invoices:
- The name of the trader or the name of any business being used.
- The address of where the valid documents can be sent if you are making use of a business name.