What Should You Include on Your Small Business Invoice?

The process of starting a small business has a lot of moving parts, so it may be tempting to avoid paying attention to the small details of your invoicing process – but this would be a big mistake. As your invoice will be how you get paid, you want to make sure to be as thorough as possible. 

You may be confused about what to include because no two businesses are the exact same, therefore no two invoices will be the same. This can even be true for invoices that are created by the same company but are received by different clients (because the goods received and services rendered to different clients will always differ, at least slightly). 

That being said, there are some staples that small business owners should always adhere to in order to ensure they send professional invoices.

Branding

Your invoice is an extension of your business and should therefore do it’s best to reflect your business’s brand. Be sure to stay consistent with any brand logos, fonts, colours or wording within your invoice. 

Customizing your invoice through branding will help keep your document looking professional. 

Invoice header

The header should clearly state what the document is – an invoice. This point may seem obvious, but it’s important the recipient knows exactly what the document is as soon as they open it. No one wants to receive a bill, and start questioning what it is and where it came from. 

Alongside the header or right underneath it, you should include a unique invoice number. This way you can easily identify and keep track of each invoice, which will help you maintain an organized bank account and stay on top of cash flow. This will be especially useful if you send multiple invoices to the same client. 

Personal information and recipient information

Your invoice needs to include your business’s personal information as well as your recipient’s. 

Personal information: 

• Your name
• Company name (if you’re a sole proprietor than you can just keep your name)
• Email address 
• Address 
• Telephone number 
• You may need to add the department and the contact person’s name if the recipient is dealing with a specific department within your company 

Recipient’s Information: 

• Recipient's name
• Recipient’s company name (and the specific department that is being addressed, if applicable)
• Recipient’s company address
• Recipient’s email address
• Recipient’s telephone number

Important dates and terms of agreement

Noting important dates in your invoice will help you and your client keep stay on the same page about the agreed upon invoice payment terms. Important dates to include are:

• Issue date (the day the invoice was created)
• Project start date
• Project completion date 
• Payment deadlines 
• Date the client received any goods or services

If there are any specific conditions for early or late payments, these should also be included in your business invoice. 

Description of goods and services 

Create a list of the goods obtained or services rendered. This list should be as detailed as possible to ensure there's no confusion as to what the client is paying for. 

For example, instead of a general description such as “installation”, write down exactly what was installed, (software, T.V., air conditioning, etc), where it was installed, how many hours it took, and if there were any additional parts you needed to purchase for the installation.

Total of what your client owes

A small business owner can use their fee schedule to determine how much the client owes. Any discounts offered will apply to the subtotal, after which you will apply the taxes. That figure is the grand total. When you create your business’s fee schedule, factor in aspects that affect your bottom line in the same way.

How Much Should You Charge on Your Small Business Invoice?

In order to arrive at a fair price that will profit your business while still considering your client’s best interests, you need to develop a pricing strategy. This can be done by obtaining accurate reports that break down your company’s financial statements. These statements include:  

• Profit & Loss Statement 
• Cash Flow Statement 
• Income Statement 
• Balance Sheet Summary 
• Sales Tax Report 
• Accounts Receivable Report

Once these reports have been reviewed, you can start looking at external factors such as market conditions, economy pricing, psychological pricing, geographical pricing and more. 

Should you Send a Small Business Invoice to Your Clients?

Yes. A small business owner can bill for obvious things, such as the number of hours they spend actually working on the client’s project. The service provider can also charge for travel time to and from the work location, compensation for additional workers, and for parts or equipment costs. Intangible items the photographer can work into their fee schedule are:

• Brand name
• Years of experience
• Marketing costs

While these aren't items to add on the invoice, these are crucial aspects of the service that factor into their fees. If you have a large number of clients, developing an invoicing schedule is necessary.

When Should You Send Your Small Business Invoice to Your Clients? 

There are different methods for how to send an invoice. If you provide short-term, small-scale services, it’s customary to send an invoice at the end of the project directing the client that payment is due upon receipt.

If your projects are larger in scope, breaking them into scheduled invoices is a common practice. Depending on the scope of a project, you can also invoice for a deposit upon the signing of the contract and break down remaining payments into monthly, bi-monthly, or quarterly payments.

Using online invoices or invoicing software will make creating and sending your invoices easier and more efficient. With QuickBooks you will get access to features that will allow you to:

• Customize your invoice (choosing brand colours, currency type, and language preferences) 
• Set up automated scheduled invoices 
• Automated sales taxes calculations
• Easier customer payments with the “Pay Now” button 
• Instant payment matching which means when an invoice is paid, QuickBooks automatically matches the payment with the invoice in your books to save you time and keep everything updated.

And the list doesn’t stop there. Download the free invoice template and Try QuickBooks invoicing software today to see how it helps simplify your entire billing process.