An invoice is a record of items supplied or work done and the amount that is owed, sent by the service provider to a customer or client. Invoice is an essential part of any business. It helps keep track of all expenses made to the third party.
One of the key perspectives of taking care of a business is managing its finances. It includes working with an abundance of information they need to catch up on, which includes the most crucial part of business cash flow- invoices.
Let us understand how to create invoice formats for retail businesses further in this article.
The main objective of an invoice is to keep track of all sale transactions made by a business organization with its customers. Businesses use invoices for several purposes, such as the following.
1. The invoice serves as a solid base for requesting clients to make timely payment
2. To keep account of sales or supplies
3. To keep inventory track of business
4. Invoices can be used as historical data to predict future revenue
5. To keep track of business income for tax purposes
When selecting the right kind of invoice template required, it is important to consider services or supplies, your client’s needs, and the objectives of your company. Finding the right invoice involves selecting the correct type of format which considers important aspects of your business along with receiving payment on time.
Apart from the business and consumer needs, the organization must abide by important rules of GST and e-invoicing, wherever it applies.
An ideal invoice format will have the following contents:-
1. A header with your business name and logo
2. Invoice number or a unique identifier
3. Your business location and information
4. Invoice date
5. Description of goods or services sold and quantity
6. Additional charges, fees, or taxes
7. Total amount due
8. Payment terms
9. Due dates
A tax invoice must have the important following components:-
1. Name, address, and GSTIN of the supplier or seller
2. Name, address, and GSTIN of the recipient or buyer, if it’s registered under GST
3. HSN code or SAC for goods and services
4. Invoice number, serially numbered and unique in every financial year
5. Type of invoices such as a tax invoice, supplementary invoice, or revised invoice
6. Description of goods or services supplied
7. Units or quantity of goods and services
8. The tax rate for every item on the invoice
9. Amount of CGST, SGST, IGST, or UTGST in separate columns
10. State of supply and place of supply
11. The total amount of goods and services supplied
12. Delivery address, in case it is not the same as the place of supply
13. If a reverse charge is applicable, then it must be duly mentioned
14. Digital signature of the supplier or any authorized person
With the aspect of invoicing, having a due date will help facilitate prompt payment. In the general business context, the due date refers to the last date payment can be made on an invoice before it becomes overdue or late. These dates signify when the payment is due and will result in several interests or penalties when the payment is not received.
Since an invoice is a legal document that is part of a sale, including the due date in the invoice will keep the consumer informed. It eliminates any doubt about when the payment is due and eliminates the possibility of denying information about the payment.
Swipe app is the go-to app on the Google play store which provides several different invoicing options, which you can pick at your ease. Swipe helps with invoicing and business needs in the following ways:-
1. Choose from multiple invoice templates as per one’s business needs
2. Helps in creating and adding fields in the invoice that suits one’s business needs
3. Auto-populates customers’ & item details on the invoice
4. Helps in an easy lookup of HSN codes to ensure no errors
5. Ensures to stay up-to-date with the latest government regulations & is future proof
6. Allows quick and easy sharing of documents with customers
7. Get access to GST, e-way bill, and e-invoicing on tap
ICICI Current Account – Procedure, Charges, and Minimum Balance.