An essential document in business, the invoice allows you to pay. It is also proof of the service or sale that has been made. Very important, it must be established in due form and must meet specific rules to be valid. So, what is an invoice? What is its role, and what legal notices should it include? Focus on this essential accounting element in business.
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The invoice is an accounting document that proves a purchase or a sale. It lists the goods and services provided by your business, and at the same time, indicates their price, as well as the total amount payable by the buyer.
The invoice is therefore essential since it is the document that identifies the creditor (yourself) and the debtor (your customer) and serves as a request for payment. But to be valid, it must meet certain conditions.
According to the legislation in force, the invoice is obligatory. Note that the buyer has the right to claim a claim if it has not been sent to him.
The invoice is an essential document that will allow:
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It all depends on the country in which you reside. Indeed, the VAT directive allows the countries of the European Union to impose their storage periods. Thus France will not have the exact requirements as Spain in terms of the shelf life of an invoice.
There are several types of invoices :
To be compliant, an invoice must contain various legal notices. It is made up of 3 main parts:
The header, which contains several mandatory information, such as:
The lines of the invoice must indicate the various goods or services provided as well as their price. They must also describe the different components of a project or product and their unit price.
In-service provision, the lines must also indicate the hourly rate and the time devoted to each part of the project. Do not also forget to tell the date of delivery or end of the service.
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First of all, be as clear and complete as possible in describing your services and products. The customer wants to know precisely what he is buying! A beautiful presentation also makes all the difference and directly reflects your professionalism.
On the other hand, be aware that using invoicing software will save you time and avoid oversights. This efficient tool not only guarantees compliant invoices but also considerably facilitates administrative management. In addition, your documents are searchable from anywhere, and follow-up and reminders are greatly simplified.
If you don’t have any software available yet, you could very well use Word or Excel. You have to be vigilant about the many legal notices to remember.
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