Why It Is Important to Always Issue an Invoice
<p>What is the purpose of an invoice exactly? Would it be possible to live without it? Most recently, even bars in the province of Quebec have the responsibility to issue a bill for all orders, even if it only for one drink. Let us take a few minutes to remember why invoices are useful for freelancers, business owners, and even customers. </p>
<h3><strong>It eases the payment process</strong></h3>
<p>To start with, let us ask this question first: what is the main goal of an invoice? Despite what other people may think, it was not made in order to put more paper in the waste bin but to ease the payment between a customer and a business for a service or a product bought. It is now said that there are more than 400 billion invoices made yearly, whether in hard copy or in electronic format!</p>
<p>Although it is possible to find a lot of useful information on a quote, such as the agreed price and the payment terms, most businesses only issue the invoice at the time of purchase. According to <a href="https://www.revenuquebec.ca/en/businesses/consumption-taxes/gsthst-and-qst/collecting-gst-and-qst/preparing-invoices/" target="_blank">Revenu Quebec</a>, an invoice must without fail to include the name of the supplier, the billing date, as well as the information concerning all taxes, the total amount and a description of the product or service offered. Moreover, an invoice is necessary even for delivery or even when the amount is $0. Thus, it is always easier to get a payment when your client knows how much he owes you.</p>
<h3><strong>It leaves visible tracks</strong></h3>
<p>The production and the rendering of an invoice allow many people related to the sales to keep tracks for various reasons; indeed, it is the most used and known transactional document. First of all, a customer will want to have its bill in order to check if the selling price is the same as the shown one or to return a faulty good. Moreover, it is more and more common to see information related to how to get a refund or even promotions or contests printed directly on the bill. Take the opportunity to <a href="https://www.momenteo.com/blog/4-ways-to-personalize-your-invoices" target="_blank">personalize your invoices</a> to help you grow your brand. On another note, know that the customer also has the responsibility to ask for its invoice if it is missing. Furthermore, it would be more difficult for a client to lodge a complaint against someone for a job poorly done or something defective if it was paid under the table, as it was the case in Quebec court’s decision for Cauchon against Mailhot in 2012.</p>
<p>An invoice is also useful to the merchant. First, it is a document that testifies that a sale of a product or a service has occurred, as well as being an accounting document. It is because of these, amongst other documents, that it is possible to create sales reports for instance. Moreover, a person who moonlights might have problems to get paid and can often be in trouble with the law. Indeed, in the Audet against D’Ovidio decision, an accountant had the bad surprise to lose thousands of dollars for unpaid professional services rendered because he willingly omitted to issue invoices in order to not report that income. </p>
<p>Furthermore, it has been estimated by Statistic Canada that undeclared work has reached the value of more than 40 billion dollars in 2011. Therefore, do not be surprised if one of the different levels of government decides to inspect you from time to time; however, these mostly count on public denunciation to act. It should be a wise move to maintain all your documents in order, no? The sanctions for hidden labor are often penalties but it can lead you to prison as well. If you are a freelancer and you sell for less than $30 000, do you need to issue an invoice after all? YES! You are tax-exempt but you need to produce an invoice for all sales of a product or a service.</p>
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<p>Finally, as you must now know, the issuing of an invoice is mandatory and must be done without delay. Besides helping you follow your sales, it shields you from unpleasant situations like non-payment risk and troubles with the law. Invoices have been there for quite some time now and it is here to stay in our consumerist society.</p>
<p>It is somewhat true that the printed bills may well not be good for the environment. As a freelancer, have you ever thought of sending your invoices online? Did you know that <a href="https://www.momenteo.com/" target="_blank">Momenteo</a> can allow you to create, personalize and send your invoices directly to your customers without having to print anything? You can even know if your client opened your invoice or send him payment reminders if needed. We suggest you take a look! </p>
<p>Good billing! </p>