The paperwork involved with operating a company can be daunting for many small business owners. From GST or HST remittances to payroll deductions, the documents can add up. One of the most important pieces of paperwork for any business is invoices. This is how they collect money. However, your invoices need to include specific pieces of information.
Here is what needs to be on every invoice you issue:
• Your business name, address, telephone, fax numbers and an email address
• Date of the invoice
• The customer’s account number and order number (if applicable)
• Invoice number: this will make tracking your invoices and payments much easier
• Your business number: you will need this if you are charging GST or HST on your invoices
• Customer name and address
• Description: it does not have to be exceptionally detailed, but include a short note about the services or products supplied
• Terms of payment: if you expect payment within 30 days, you should indicate it on your invoice
• Taxes applied: you should indicate what items were subject to GST or HST, as well as any exemption expenses
• Total: make sure you provide a total amount for your invoice
• Product return policies (e.g. within 30 days, original packaging, etc)
• If you are invoicing an out of country customer, the currency of the invoice amounts
• A “thank you” for the customer’s business
You do not always need a bookkeeping program to produce invoices; that decision depends on your business and what works for your record keeping. But make sure you track details like invoice numbers so you can make sure you are paid for all the ones you have issued.
And though you may not want to think about it, there is probably a greater chance of a small business being reviewed by the Canada Revenue Agency than the average taxpayer. Making sure you have all your paperwork and documents correct and findable will mean any review or audit should be much smoother.