5) Making a sale and creating an invoice

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SimpleBookkeeping

Uri Maimon - Founder Nominal Accounting

PostHeaderIcon Making a sale and creating an invoice

Making a sale! Wow I can¢â‚¬â„¢t believe we¢â‚¬â„¢ve taken so long to get to this basic step, what are we all doing here if we aren¢â‚¬â„¢t trying to make a sale?

Even the sound of that last term ¢â‚¬Ë"make a sale¢â‚¬â„¢ makes me cringe, much easier to think of it as providing services or solving your partners problems :-)

So let¢â‚¬â„¢s have a look a the invoice, what is it and when or why should you use it?

According to Wikipedia (which we should¢â‚¬â„¢nt always trust, but I will trust them on this one):

¢â‚¬Å“An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms.¢â‚¬

When should you use an invoice and what should be in it:

a.       When you¢â‚¬â„¢re selling using credit terms

I.e. when you provide the services or product to our customer NOW and expect to receive the funds LATER.

b.      When you need to supply an invoice to a customer

Sometimes a customer or a business you work with, will demand an invoice in order to pay you.

c.       Select  the items you¢â‚¬â„¢re selling

When you create an invoice you specify the type, price and quantity of products or services you supplied.

d.      Select the sale account for each item

For each item on the list you should select the INCOME account, this is the account that will be debited for this sale. So if you¢â‚¬â„¢re a consultant you might select ¢â‚¬Ë"Consulting Fees¢â‚¬â„¢ as your income account.

e.      GST included?

When you specify a price for a product you should note whether the price includes or excludes the GST component. The default setting for an invoice is GST excluded.

So if the product is $100 the GST will be $10 and total $110 ¢â‚¬" simple!

f.        Select the template to use for this invoice.

If you want to send this invoice to a client by email, or save it to a word or a PDF document, you must select an appropriate template to do this in.

A template in Nominal uses .DOCX document and the Invoice field to create ANY KIND of invoice you can think of.

g.       Print, email, edit or view.

With each invoice you can select to print, email or view the invoice using the selected template.

That¢â‚¬â„¢s about it with invoices for today, I would say making a habit of promptly invoicing customers for work performed or product delivered is a key part of taking care of your business financials.

When using Nominal accounting it is very easy to customise your invoices to include your logo and your brand identity, I highly recommend you take some time and make sure you  deliver the best looking invoice you can ¢â‚¬" even pay someone to do it for you.

It will make you business stand out and make you look more professional ¢â‚¬" I hate it when I get these awful standard                 invoices from  a certain common accounting package J

That¢â‚¬â„¢s it for now...

next week: how to manage your items and services.

What is this about?

Nominal Accounting is all about making bookkeeping simple, we created Nominal to be a provide a simple solution for Australian Micro Businesses. In this newsletter/blog we're going to cover different aspects of business bookeeping and to try and provide a some 'lessons' or tips on how to go aboutdoing some of these simple tasks.

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