Tax invoices for New Zealand service businesses

Invoicing is the part of running a service business that nobody looks forward to. When your invoices come from the same place as your bookings, most of the work disappears: the client, the service and the date are already there. BookAndGo's invoices for a New Zealand business carry your GST number, NZBN and a GST line, so they are ready to send as tax invoices.

What a BookAndGo invoice includes

Each invoice shows your business name and NZBN, the client, the service, the date and the amount. For a GST-registered business it also shows your GST number and a GST line, which Inland Revenue asks for on all but the smallest tax invoices. Invoices are numbered in order, so your records stay tidy and easy to follow.

For the details a tax invoice should carry, and when you need to issue one, Inland Revenue's guidance for GST-registered businesses is the place to check. BookAndGo puts your GST number, NZBN and GST on the invoice; you remain the one who knows your own tax position.

Because the invoice comes from the booking, the details match what actually happened. There is no retyping a client's name or the service, and no chance of the date on the invoice differing from the date in your calendar.

Setting up your details

Before your first invoice, add your NZBN, choose whether your business is GST-registered, and if it is, add your GST number (your IRD number). Check your business name and address, because they print on every invoice.

If you are not GST-registered, leave GST off. Your invoices will show the amount without a GST line.

Check your settings again if anything changes, such as becoming GST-registered partway through the year. From that point, new invoices carry the GST line.

Choosing when invoices go out

You decide how invoices are sent. Some businesses send each one by hand when they are ready. Others send automatically when an appointment is completed, or after a short delay, or in a weekly batch. Pick the rhythm that matches how your clients pay.

Automatic sending suits a business where the invoice amount is always the service. Sending by hand suits work where you add extras or adjust on the day.

If you are unsure which suits you, start by sending by hand for a few weeks. You will soon see whether your invoices are always the same as the service, in which case automatic sending will save you time.

Whichever you choose, the invoice goes to the client's email address on their record, so keeping client emails up to date matters here as much as it does for reminders.

Recording what has been paid

When a client pays, mark the invoice as paid and record how, such as cash, EFTPOS or bank transfer. The client is sent a receipt by email, and your list of invoices shows at a glance what is still outstanding.

Search and filter your invoice list when you need to find one quickly, and print an invoice when a client asks for a paper copy.

If a client pays part now and part later, keep the invoice open until the rest arrives, and add a note so you remember what was agreed. The outstanding list then tells you exactly who to follow up and for what.

Good habits at GST time

Keep your invoices in BookAndGo up to date through the period, rather than catching up at the end. Mark invoices paid as payments arrive, and check outstanding ones every week or two.

Share your invoice records with your accountant or bookkeeper in the way they prefer. Having every invoice numbered in order, with your GST number, NZBN and GST shown, makes their job quicker and your return simpler.

If you work with a bookkeeper, ask them once how they like to receive your records, and set a regular day to send them. A small, regular habit beats a large job at the end of the period.