Are you having a tough time gathering more customers into your business? It’s true that you are a very hard working and passionate retail marketer. Yet, there is a problem somewhere that seems like a difficult task to figure out. Let’s think about every little detail now. Hey, have you checked the correctness of your invoice?
Many times, due to lack of proper attention given to the accuracy, the customer tends to pay late or even return it. So, why disappoint your customer with something so easy to design perfectly, as an invoice?
What is an invoice?
An invoice is a document that a seller sends to a buyer specifying the quantity and cost of products or services delivered. Most companies give the customer a hard copy of the invoice. But, some like Flipkart, as part of their Go-Green initiative, will send only the soft copy of it within 24 hours of delivery completion.
Why Should I Use An Invoice?
An invoice is basically useful for 2 reasons:
1) For the customer, it is an account of the money he has to pay to the seller and
2) For the seller, it is a document he can use for bookkeeping.
• It is not only an account for the sellers and buyers, but it is also an important document for any legal discrepancies if they happen.
• A Business needs an invoice for accounting and collectively produces it to the government as a financial report at the end of the financial year.
• In trade, the seller can go through the history of purchase from a particular buyer and provide discounts or offers to loyal buyers. In addition, business will be able to analyze the sales and understand the patterns and make a decision on the inventory or goods purchase.
Having said that, knowing how to make the perfect invoice by including all the details required is of utmost importance. Let’s go through this information.
How to make the perfect invoice?
What you should include in your invoice
- What are your customers paying for? – Quantity and description of the goods sold have to be given in detail.
- How much are they paying? – The summary of the payment should be given along with the total amount including these: – 1) Unit price of the goods 2) Delivery Charges 3) Details of discount 4) Details of tax levied
Let us look into the details of the various taxes imposed on a retailer:
- VAT: Value Added Tax is a tax levied on goods, at each level of the supply chain. This is the tax that is paid to a particular state. The state sales tax has now been replaced by VAT. The basic rates of VAT are 5% and 14.5%.
- CST: Central Sales Tax is a tax levied on goods that are involved in inter-state trade, or outside a state, or which is imported into, or exported from India
- Service Tax: If your company is service based, or if you are providing any kind of services associated with your product, then a service tax will be imposed on you.
So, these are the basic taxes that will have to be fulfilled by you and to be mentioned in your invoice, as a retailer. Now, as far as tax is concerned, another important factor to be included in your invoice is the TIN (Taxpayer Identification Number). Every dealer needs a TIN number as it is the token of identification of their business registered under VAT. So, the TIN number of the seller’s company has to be mentioned in the invoice.
- How to pay? – Provide details of the customer’s mode of payment.
- How can they contact you? – Do not forget to mention your company name, address, telephone number and email address in your invoice.
- What is their invoice number? – Often, the invoice number comes in handy. It’s important to have a numbering system for your invoices so as to simplify the process of organizing them and for future references.
- When did they pay you? – Mention the day, date and time of purchase of the product by the customer.
- Are you happy with them? –Don’t forget to leave a “thank you” message with your invoice for the customer.
How to use invoicing smartly?
We, at Primaseller, have developed a very efficient invoice generation system, which will aid you in your business in a big way. It will automatically track all your records and create invoices with all the requisite information your customer needs.