For many small businesses, all the hours and energy you put into completing a project results in creating an invoice at the end of the day. It’s important that your small business has professional invoices for a number of reasons.

1. You get paid via invoices. If your invoice is sent out on time and has the terms and conditions set out clearly, you will be more likely to get paid on time.
2. You need invoices to keep business records. Invoices help you calculate your earnings and track the progress of your business.
3. An invoice clarifies what the client is paying for.
4. A well setout invoice gives customers confidence in your company and makes a positive impression right away.

There are particular standards when it comes to the set out of VAT invoices, to make it easy for recipients to locate the necessary information for tax purposes.

These VAT invoices should include:
• A unique invoice number
• Your business name and address
• Your VAT number
• The date of the invoice
• The tax point (or time of supply) if this is different from the invoice date
• The customer’s name or trading name and address
• Description of the goods or services
• Total amount excluding VAT
• Total amount of VAT
• Price per item, excluding VAT
• Quantity of each type of item
• Rate of any discount per item
• Rate of VAT charged per item – if an item is exempt or zero-rated make clear no VAT on these items
• Total amount including VAT

There are different rules for invoicing if you use a VAT margin scheme.

A simple bookkeeping program like Cashflow Manager Gold can help you set out your invoices to not only look professional, but to comply with the required standards. You have the option to use a standard layout settings or create a customised layout to match your business. A simple wizard in the program can help you set up a customised invoice template for your small business in just a few minutes.  You can learn how to create an invoice for your business by watching this video.