prepare an invoice as a sole trader

Chapter 14

How to Invoice as a Sole Trader?

Author: Bhaval Patel

Learn to Invoice as a Sole Trader: A Basic Invoicing Guide For Beginners

To prepare an invoice as a sole trader, you should always explain your service and the price for every service you provide. Your invoice explains to the customer that their payment for the service you render is due and that you are ready to receive payment.

An invoice represents a tool used by a vendor to request payment from a customer. As a sole trader, an invoice you send to a customer must contain all your business details and where you can be reached, as well as that of the client, including your business name and address, Email,  invoice number, payment terms, and methods. If your business is registered, add your company registration number on the invoice.

This aspect of the section covers:

  • What you have to add on a Sole Trader Invoice
  • How to prepare a Sole Trader Invoice
  • What Bank information should be added to an Invoice

What You Need to Add on a Sole Trader Invoice

When you sell goods or render your services to your customer, the next step it to send an invoice to your client, your invoice should be sent with the right payment information. You should also include tax information, if applicable.

include in sole trade invoice

All the necessary information to include in the invoice are:

  • Date of invoice
  • Invoice number
  • The word “invoice.”
  • Your business name and address
  • Phone number and contact information
  • Email
  • Your registered business number
  • Your customer’s name and address
  • An explanation of the service your customer is paying for
  • The date you rendered the service
  • Tax if applicable
  • The total cost of your service
  • Payment methods you accept

Helpful Tips For Sole Trader Invoicing

As a sole trader, when you send an invoice to a customer, your brand or business logo should appear boldly, as well as your business name showing clearly.

Sending invoices quickly means you’re getting paid quickly

Your payment terms must be clearly stated to make sure your customer sees it. If you accept different payment methods, let it be known in the invoice.

The description of every service you rendered during the job should be explained. If it is a product, describe it and add the quantity you supplied.

You help your business, send invoices with automated systems, or via electronic mail so that you and the customer will have an original copy of the invoice.

Have a follow-up plan so you can always remind the customer to make payment when the payment is overdue.

How to Prepare a Sole Trader Invoice

If you’re sending an invoice for the first time or you’ve been doing so regularly, you need to learn how to prepare an invoice. Omitting a part of the invoice will make your customers think you’re not professional enough. You can select pre-existing templates or create a new template on an invoicing solution software.

Prepare a Sole Trader Invoice

To prepare a sole trader invoice, use these procedures:

  • Create a blank page in Word program
  • Use your business name and contact details to create a header
  • Type your customer’s name below the header, make sure it aligns to the left
  • Assign an invoice number and date of billing. The invoice number helps with reference and bookkeeping purposes.
  • Include the product you supplied or the type of service you rendered with the right description and price. The price of each service or product should be at the end of each description. Creating rows and columns will be best for the description.
  • At the end of all descriptions and price tags, calculate the total amount you’re going to be paid and write it down, with tax rates and other discussed fees.

Add all necessary payment details and payment terms, as well as your preferred payment methods.

What Bank Details Should be Added to An Invoice?

Bank Details Should be Added to An Invoice
One of the preferred payment methods is bank transfers; if you want to get paid through bank transfers,  you’ll need these details on your invoice.

  • Account Name
  • Account Number
  • Routing Number
  • Bank Name
  • Invoice Number

After including these details, you can add your payment terms. Thereafter, include all the necessary details and payment terms, endeavor to add a note, appreciating your customer for doing business with you.

Afterward, you can introduce them to other services you offer. Showing appreciation to customers will help you maintain the customer relationship and also get them to pay you faster.

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