If you have a Limited Company, then you’ll know that you have a lot of rules and regulation to follow! And your invoices are no exception!
Since a sales invoice is a legal document between you and your client/customer, there are certain items you need to include by law and others that are just helpful.
Here is a Limited Company invoice template for you to download and use. I’ve also included some guidance to help get you started using your invoice and customising it.
Download Your Limited Company Invoice Template
Choose the right one for you, depending on whether you are VAT registered or not and it will open in google sheets for you to take a copy:
You should only charge for VAT and show VAT if you are VAT registered.
Getting Started Using the Invoice Template
Now you have your template, you’ll need to customise it so it’s right for your brand and business.
Step 1: Add Your Details
Begin customising the invoice template by adding your:
- Business Name
- Email Address
- VAT number (only if you are registered)
- Company number
- Registered office address
At the bottom of the template be sure to add your bank details, so your customers know where they need to pay you.
Step 2: Add Your Payment Terms
This is important.
Payment terms mean the length of time you give your customers to pay you. In effect, you are giving them credit, especially if you deliver your product/service up front and then wait to get paid.
Typical payment terms are:
- Upon receipt of invoice
- 7 days
- 14 days
- 30 days
What these payment terms mean are that you are agreeing to give your customer an extra number of days to pay you after the invoice date.
Choose the one that is right for you, although in reality there may be some industry standards you just need to adhere to and will govern which one you select.
Also be aware, that some companies, especially the larger ones may not be able to accommodate short payment terms despite your requests for administration reasons or some may even dictate how many days credit they get from their suppliers.
Step 3: Change the Branding
I’ve set the limited company invoice template up with my brand colours, so you’ll want to change them to match your own branding.
In fact, depending on how confident you are with google sheets you can add almost any parts of your branding you like.
Highlight the cells you wish to change and click on the ‘fill’ button on the bar to select your colour.
Step 4: Add Your Customers Details
You’ll need to make your invoice out to your customer, so they know its for them.
You can overwrite the Customer Name and address lines on the template.
Step 5: Enter the Invoice Date
Usually this is the date that you are raising the invoice.
If you are using the VAT registered version of the template, then you’ll need to enter the tax point or the invoice date, whichever is applicable to your transaction.
Step 6: Enter Your Invoice Number
You need to include some kind of reference or number on your sales invoices.
It is a legal requirement because if HMRC ever investigates your business they will want to review your invoices in numerical order.
This is an easy check to confirm that you have included all your invoices in your accounting records.
You don’t necessarily need to start at number one, in fact, many people choose not to because it hides how new their business is. But wherever you start, run a consistent system.
Step 7: Enter Invoice Values
You’re ready to start entering details of the money you are owed! Give your client as much information as possible to avoid questions and delays in you getting paid.
The template will automatically calculate the individual amounts and totals.
If you are using the VAT version of the Limited Company invoice template, you’ll need to select the appropriate VAT rate from the drop-down list (it is a legal requirement to show the VAT rate you are using on your invoices).
Step 8: Save a Copy
You must keep a copy of all the invoices you send out as part of your bookkeeping and tax records.
Step 9: Send it to your client
Final step is to send it! The sooner you get it out the sooner you’ll get paid!
Credit Note Template
In the event that you need to refund your client or customer, you may need to raise what is known as a credit note.
A credit note is basically the opposite of an invoice and you can download a template here which matches the version of the invoice.
This Limited Company invoice template is the first part of getting you paid.
Make sure you keep an eye on who owes you money so you can chase them as close to your payment deadline as possible.
According to The Federation of Small Businesses over £6,000 on average is left unpaid to small businesses by clients each year. So it is crucial you do not get overlooked, either accidentally or on purpose.