What Should Be Included in a Service Invoice?

1. Business Information

Every invoice should include clear details about the business providing the service. This includes:

• Business Name: The legal name of the business.
• Business Address: Physical or registered office address.
• Contact Details: A phone number and email address for communication.
• ABN (Australian Business Number): This is required for all businesses registered for GST. The ABN helps confirm the business’s legitimacy and allows customers to ensure the invoice is valid for tax purposes.
   

2. Invoice Number

Each invoice must have a unique, sequential invoice number to track and reference it easily. 

3. Date of Issue and Due Date

• Invoice Date: This is the date the invoice is issued.
• Due Date: The date by which payment is expected. 

4. Detailed Description of Services Provided

The invoice should clearly describe the services or work that were provided. This can include:

• A list of services or tasks performed.
• Any specific details that outline the work carried out (e.g., “plumbing repairs,” “website design,” “cleaning services”).
• If the work was completed in stages, the invoice should indicate what has been completed and if any work is pending.

5. Itemized Breakdown of Costs

The invoice should provide a detailed breakdown of charges, including:

• Service Fees: The cost of each individual service or task performed.
• Hourly Rates: If the service is billed by the hour, the number of hours worked should be included.
• Materials and Supplies: If any materials, tools, or products were used, the cost of these should be listed separately.
• Additional Charges: Any extra fees (e.g., delivery charges, travel costs, or emergency surcharges).

Each cost should be shown individually, and the total should be clearly indicated.

6. GST (Goods and Services Tax) Information

If the business is registered for GST (Goods and Services Tax), it is required to show the amount of GST charged on the invoice. This includes:

• GST-inclusive pricing: The total amount of the invoice includes 10% GST if the service provider is GST-registered.
• GST-excluded pricing: If the GST is added separately, the invoice should clearly indicate the GST amount.

The business should display its ABN on the invoice to confirm that it is registered for GST.

7. Total Amount Due

At the bottom of the invoice, the total amount due should be clearly stated. This should include:

• The sum of all services and materials provided.
• Any applicable taxes (GST, if applicable).
• Final amount due after any discounts, credits, or pre-payments.

8. Payment Terms and Methods

Clear payment terms are essential for both parties. This section should include:

• Accepted Payment Methods: Indicate how you can pay (e.g., bank transfer, credit card, PayPal, cash, or cheque).
• Bank Details: If paying via bank transfer, provide the bank account details, including the BSB and account number.
• Late Payment Terms: If applicable, mention any late fees or penalties for overdue payments.

9. Terms and Conditions (Optional)

While not legally required, businesses may include additional terms and conditions on the invoice to clarify aspects like:

• Refund policies.
• Warranties.
• Service guarantees.
• Dispute resolution procedures.

This is particularly useful if the work involves ongoing services or complex terms.

10. Customer Information (Optional)

The invoice may also include the customer’s details, especially for businesses offering ongoing services. This can include:

• Customer Name/Business Name.
• Customer Address.
• Customer Contact Information (phone number or email).

This helps ensure there is no confusion over who the invoice is for, particularly for businesses that may serve multiple clients.