Where’s the bank account details? And other minor crimes!
I received a call from a supplier saying “just a gentle reminder, this tax invoice remains unpaid”. This was surprising to me as I pride myself on being efficient when paying my suppliers. I believe that when some one does the work they need to be paid immediately, it’s one of my values.
I took a look at the attached tax invoice and guess what? No bank account details on the invoice.
Make it really easy for your clients to pay you, make sure you include your correct bank account details on your invoice.
There are a number of requirements of a valid Tax Invoice in Australia:
- Suppliers, your business, identity; Name and Address and ABN
- Must say “Tax Invoice”
- Invoice Number
- Date of transaction
- Brief description of what is sold, or item number, including quantity sold
- Sale price or amount paid
- GST component, if applicable. Where applicable: “total price includes GST”
- Due date for payment/ terms of payment
- Method of payment, including bank account details for eft
When an invoice is for more than $1 000 the name of the purchaser, the client needs to be added to the tax invoice.
Keeping a copy in your records can either be electronic or physical, paper copy. The requirement is that you are able to produce copies if requested by the ATO
BTW: For invoice numbers you could use a combination of the date and the name of the client eg 20171212 Client
For further information about Tax Invoices in Australis visit the ATO https://www.ato.gov.au/business/gst/issuing-tax-invoices/
Thanks for reading – I trust it is thought provoking and will encourage you to take action. Taking action is a key characteristics of successful business owners.
I’m Ingrid Thompson and as a Trainer, Business Coach and the Founder of Healthy Numbers I help people take action to get ready to start their own business.
I’ve written “So You Want to Start a Business; the 7 steps to create, start and grown your own business”.
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