What is an invoice
An invoice is a detailed statement that itemises a transaction between a seller and buyer, serving not only as proof of sale but also as a formal demand for payment for the goods or services provided.
Beyond a simple Word document, a legally valid invoice in Australia must comprise specific details:
- Issue date
- A sequential invoice number pre-assigned by a system
- Seller’s legal business name and Australian Business Number (ABN), with ‘GST registered’ if relevant
- Buyer’s full details, including name and address
- Detailed description of products or services supplied
- Quantity or extent of the products or services provided
- Time and place of supply
- Total payment due, including clear itemisation of the Goods and Services Tax (GST)
- Payment deadline
- Breakdown of amounts subject to different GST rates, if applicable
Thankfully, contemporary invoicing applications like Conta automate these aspects, ensuring you fulfill all the requisite criteria by simply inputting the necessary data.Send invoices for free
Different types of invoices
Most business invoices are credit invoices, meaning payment follows the delivery of goods or services. Conversely, instant payment transactions require a cash invoice, which adheres to the same information requirements.
Upon discovering discrepancies or needing to issue a refund, a “credit invoice” must be generated to negate or alter the original invoice.
Different ways to send
While mailing invoices is still an option, electronic delivery is now the norm. This includes sending via email or using more secure methods like electronic billing within personal banking platforms.