Are sales invoices really needed?

What is a sales invoice?

A sales invoice is a request for payment by the seller for goods or services provided.  It is important for businesses to raise sales invoices for many reasons. Some of these reasons are listed below:

 

  • For tax purposes, HMRC require companies to keep evidence of sales made for at least 6 years and up to 10 years in certain circumstances. Companies also need a record of all the sales made in order to complete the year end accounts and calculate the amount of tax owed.The details on the invoice will show what you have supplied which can then help protect a business against any disputes.
  • By reconciling the debtors on a regular basis will highlight any outstanding debts that need to be chased.
  • Analysing the invoices can also be a good marketing tool to see how, what, where and when the products and services are being sold and which employee is making the most sales.

What needs to be shown on an invoice?

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