For influencers, it’s essential to stay on top of the business side of things and make sure that your invoices are compliant with Australian Taxation Office (ATO) regulations. To help you out here, we’ll will explain what information should be included in an invoice for ATO compliance. Plus, we’ll provide some useful advice about how best to prepare an invoice narrative, display pricing correctly and include clear payment info including bank account details.
Writing a Narrative for Your Invoice
When it comes to writing a narrative for your invoice, it’s important to be as detailed as possible. This means clearly describing the services or products provided, the dates of service, and any other relevant information. Additionally, it’s important to include your business name and ABN (Australian Business Number) on the invoice.
Show Invoice Pricing
Clearly display the total cost of the services or products provided, as well as any applicable taxes (such as GST). It’s also important to indicate whether the invoice is GST inclusive or GST exempt.
GST Inclusive or GST Exempt
It’s essential to display whether your invoice is GST inclusive or not. In the case of GST-inclusive services and products, you must include the appropriate amount of GST in your total price as well as display the invoice includes GST. If however, you offer goods or services which are exempt from such taxes, then it’s mandatory to state on the invoice that they are tax exempted items. For further reference, the ATO provides a list of all types of exemptions available.
You must register for GST if your turnover will reach or exceed $75,000. The ATO provides detailed information on when and how you should register for GST and you should speak with your accountant or BAS agent about remitting any tax collected.
Payment and Bank Account Details
To help get paid on time, be sure to include all your relevant payment and banking info – like the due date for payment, the bank account name, number and BSB (Bank State Branch) – on every invoice. Also add in contact details such as your email address and phone number so customers can reach out with any questions they may have about invoices. Lastly, don’t forget to display a clear deadline on the invoice for when payments are expected.
Invoicing Software and Templates
There are plentiful free as well as paid software options available to make this process easier to create and send invoices. As well as software options, there is a large selection of free invoice templates available online that you can personalise using Microsoft Word or Excel. Using these tools will help simplify the procedure of issuing invoices so that you can concentrate on what matters most: creating high-quality content.
Following Up on Overdue Payments
While it’s important to ensure that your invoicing is compliant with the ATO, it’s also important to follow up on overdue payments. According to the ATO, an invoice is considered overdue if it’s not paid within the agreed upon payment terms. So, it’s important to have a system in place for following up on overdue payments. This can include sending a friendly reminder, making a phone call, or even hiring a collection agency. It’s important to be persistent, but also professional and respectful when following up on overdue payments.
Pro Tip: Establish payment terms with your client beforehand to avoid any misunderstandings about when you will receive payment for your invoice.
Tips for a Successful Invoice
- Always include a detailed narrative that describes the services or products provided and the dates of service.
- Be clear and consistent with your pricing, including the total cost and any applicable taxes.
- Include your business name and ABN on the invoice.
- Include a clear due date for payment, as well as your bank account name, number and BSB.
- Make sure you include your contact information in case the client has any questions about the invoice.
The above information is general and you should always check with a tax professional or the ATO in case of any specific questions or concerns regarding your taxes and invoicing. Remember to also stay informed about the latest tax laws and regulations, such as the ATO crackdown on gifting to influencers. By staying informed, you can maximise your earnings and avoid any legal or financial issues.
