Say you are a wedding planner, who has successfully completed 5 wedding assignments, earned a good amount of money, and made goodwill. Happy you with a lot of happy customers. But how you do receive the money for your task? Cash or cheque or credit card or maybe Google pay? While these tech-savvy payment platforms operating today make things easy for businesses and customers likewise, creating and receiving a sales invoice is a helpful and good idea to maintain a record that you might need to prepare your books of accounts and ITR file. Sales invoicing gives you a true picture of the cash flowing into your business, as well as foreseeing the future it holds. To learn more about sales invoices, keep scrolling!
What is a Sales invoice?
A document that is given to your customers in their name mentioning the goods or services they purchased and the rate paid, date of purchase, and delivery is known as a sales invoice. Mentioning details like shipping charges, sales tax, and any more external costs(if applicable) is also a part of sales invoicing. To make it more clear, here are the things that go in a sales invoice:
- Contact details– Contact details in sales invoicing include names, addresses, phone numbers, and email addresses of the buyer as well as the seller on the invoice.
- Invoice date– The date on which you create and forward the invoice to the customer is termed the invoice date.
- Invoice number– There is a unique invoice number for each invoice that is generated for a customer. It helps in tracking the payments you are receiving per invoice.
- Services offered– Sales invoices must state details about the products purchased or services offered to the customers. It is important to mention the charges for every single item without fail.
- Payment terms– As per the nature of your business, you need to mention the terms and conditions related to payment in your invoice. Failing to do so is no less than a crime. If you have a late fee policy in play, do mention that to keep your clients aware.
- Due date– Due date or deadline refers to the date by which your customer has to clear off all the dues he or she owes your business. Usually, the general invoice time span ranges between 28-30 days from the day the product was purchased or the service offered. It is important to check the payment method your clients prefer before delivering the goods or services. This is a major step to prevent any payment-related dispute.
The purpose of sales invoicing
Sales invoicing aims to inform customers of the goods and services they purchased along with the amount they need to pay. As a seller, you will benefit from generating sales invoices in a number of ways. Here are some listed below:
>Assists in bookkeeping– Sales invoices are official documents helping to keep a track of all the cash you are generating from your business, and the number of goods or services offered
>Helping with tax documentation– In the case of a business audit, these sales invoices are documents that you can use as proof of cash flowing into your business account. Besides, you can use them for calculating the total accounts receivables and ensuring yearly tax documents.
>Serving legal necessities– In case of delayed payment or deferred payment from clients who have received your goods or services already, you can use these sales invoices as legal documents and take action against them. If a case is genuine and all details mentioned are at par, chances are you will win a legal suit.
>Planning the budget and marketing costs– At some point, it is important for a business to check its budget plans and marketing costs to minimize loss and maximize profit. This becomes very simple for businesses that issue sales invoices since they come with all details and are handy.
Get professional help for sales invoicing
It is easy to create sales invoices today using some professional sales invoicing software but this is entirely a DIY task and asks for a good amount of your time and attention. If you wish to avoid this hassle, seek professional sales invoicing help from Spacebucks https://spacebucks.in/service/outsourced-accounting/. We offer service at a reasonable rate, ensuring delivery within the deadline without fail.
To learn more about our sales invoicing service, email us at firstname.lastname@example.org or call +91 9867 557133. You can also whatsapp us at your convenience.