As a MYOB Certified Consultant I come across many businesses that send sales invoices to their customers without the minimum information required to pay them. By not clearly showing payment options, the due date or by not meeting the minimum ATO standards you are potentially holding up the receipt of customer payments.

Grab a copy of your business sales invoice now and make these simple changes and increase your chances of collecting payments faster.

First things first. Make sure your invoice is legal!

Minimum ATO Standards
Below you will find a list of the minimum ATO requirements for every single invoice that leaves your office. Ensuring your sales invoices have this information will reduce the possibility that customers won't pay your invoice because your invoice isn't legitimate.

• Your Business Name
  
• Your ABN
  
• Date of Invoice
  
• The words "Tax Invoice" if you are registered for GST. If not, the word "Invoice" will suffice.
  
• Invoice number
  
• Purchaser Name (and Address or ABN for purchases $1,000+)
  
• Description
  
• The GST exclusive amount
  
• The GST amount
  
• The GST inclusive amount

Free ATO Download! Printable guideline on how to produce invoices for the following:

• Tax invoice for goods or services that all include GST (taxable supplies only)
  
• Tax invoice for goods or services that don't all include GST (mixed supplies)
  
• Tax invoice which has been issued from a cash register
  
• Invoice for goods or services that do not include GST
  

So now that your invoice is legal, you may also consider the following suggestions:

Clearly state the terms and/or due date
If your customers know when the invoice is due to be paid, it lessens the possibility of the invoice being forgotten about or re-prioritised.

Make it easy for customers to pay you
Provide clear options for payment so that customers can choose which best suits them.

• Your bank details for EFT payments (Bank Name, Account Name, BSB & Account Number)
  
• Postal address for cheques and entity name the cheque should be written to
  
• Credit card options. If you don't have a merchant facility, set up a PayPal merchant account. You can issue invoices and request money from customers who then receive an email with a link to enter credit card details.

Telephone number
Include the relevant phone number in case a customer wishes to query your invoice. If they have a query and can't easily contact you, your invoice risks going to the bottom of the pile.

Purchase Order number
If your customer has placed an order in writing or via phone always state the Purchase Order number on your invoice. This will certainly speed up the approval process by assisting your customer in finding their Purchase Order. Alternatively, on the invoice put the name of the person who ordered the goods or services and ensure the invoice goes straight to them for approval.

Email your invoices for faster payment
Most accounting packages will allow you to produce your invoices in PDF format which can easily (and quickly) be provided to your customer via email. Also ensuring you have the email address of the person who will authorize the invoice for payment will speed up the process. For example, don't send the invoice directly to Accounts Payable if a Manager needs to sign off on it first.

Overall layout
You should be able to easily locate the following on your sales invoice:

1. The invoice number/date
   
2. The total amount
   
3. Payment options

Also consider the following tips:

• Ensure the font size and/or colour is easy to read
  
• Use standard size paper (A4 or Letter)

You may also consider design and format for your tax invoices or invoices. Your logo, paper colour and font style can help your invoice stand out from the others. Many businesses choose to print their invoices on coloured paper to ensure their invoice stands out from the rest.

Sophie de Somerville is passionate about helping small businesses to not only get the most out of MYOB but also manage their financial systems efficiently by implementing simple processes. As a MYOB Certified Consultant and director of a successful bookkeeping consultancy, she is well experienced in all aspects of MYOB consulting and bookkeeping processes. Utilising her strong bookkeeping and training background, Sophie is able to train students using her own experiences working with many and varied clients across Sydney and throughout South East Queensland.

Email: sophie@precisionpays.com.au
Website: www.precisionpays.com.au
Twitter: www.twitter.com/SophieDeS
LinkedIn: www.linkedin.com/in/sophiedesomerville
Member Directory: Sophie de Somerville

Sophie de Somerville is presenting our April StartUp Success webinar - Budget Basics: Business budgeting made easy.

During Budget Basics we'll look at the basics of budgeting in business, what to account for and how to forecast and review your financial situation.

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