Duedil Blog

Let’s face it, invoices and other paperwork aren’t the most glamourous aspects of running your own business.  However, this doesn’t make invoicing unimportant – you can’t get paid without them.  Here is Duedil’s quick guide to setting up an invoicing procedure.

Since issuing an invoice is the first step to achieving positive cashflow, you’ll first need to make sure that you:

• immediately issue the invoice after supplying the goods or service
• include everything the customer asked for on the invoice
• have a good accounting system in place, possibly utilising accounting software
• comply fully with HMRC requirements for VAT

Additionally, you’ll want to try to preempt any problems arising from disputed invoices by:

• establishing a process for looking into and resolving disputes as soon as they arise
• logging the details in order to ascertain possible root causes
• documenting the dispute in case it escalates
• keeping a record of customers that use disputed invoices as a way of avoiding payment

Here are five key tips to establishing good invoice protocol:
1. The sooner you submit the invoice, the sooner you get paid.  Very obvious, but important to remember when you are procrastinating on your paperwork.
2. Make sure to get the invoice right the first time.  Errors can cause costly delays disputes, and these are easy to avoid by properly proofreading your invoices.
3. Query your customers on what they might need on the invoice, in addition to the basics:

• Your name and address, as well as your company’s registration number
• Your company’s VAT registration number
• Correct name and address for the customer
• Delivery address, method, and date
• Purchase order number provided by the customer
• Invoice reference number for quotation by customer
• Description of the goods or services supplied, with an accurate inventory and amount due
• Payment terms and due date, including your bank account number and sort code (if it’s by direct debit)

4. Terms and conditions, including the statement “We will exercise our statutory right to claim interest (at 8% over the Bank of England base rate) and compensation for debt recovery costs under the Late Payment legislation if we are not paid according to our agreed credit terms.”
5. Use your established system to resolve any disputed invoices quickly and efficiently.

If you follow these guidelines, you won’t let a bit of paperwork stand in the way of making money for your business.

Andrew Connolly

Andrew is a key member of the Duedil team. In addition to coordinating Duedil’s research, social media and PR efforts, Andrew also regularly blogs about useful information for startups and business owners. Duedil is the world’s largest free database of company information. Using data gathered from a variety of sources, including Companies House, Duedil presents business owners, startups, venture capitalists, and the otherwise curious with key insight into any company in the UK and Ireland.