Company invoicing
Invoicing your business should not be taken lightly. Creating an invoicing document is an important step in protecting your business against any inconvenience, but it also enables you to enforce your right to payment with your customers. Find out all about what invoicing is.
Who does invoicing affect?
All businesses involved in the production, distribution and provision of services are required to draw up an invoicing document. It is essential to clarify the relationship between your company and your customers, whether they are private individuals or professionals.
You are obliged to create an invoice, which you will issue immediately after the sale of a good or the provision of a service. This document will trigger a request for payment from your customers. It is also proof that you have actually carried out the order and that you are entitled to claim payment for your work.
Self-employed entrepreneurs and micro-businesses are also subject to invoicing. However, they do not need to charge VAT because they are exempt.
Invoicing between professionals is an unavoidable obligation. You have no choice but to draw up a formal invoice if you are selling goods or providing a service to another company.
For invoicing private individuals, the law is a little more flexible. You are only obliged to issue an invoice for distance sales and intra-Community sales exempt from VAT. And if the customer asks you for an invoice, you cannot refuse. In the case of a shop, the invoice will often be replaced by a till receipt. If your customer needs a more detailed document, they can request a pro-forma invoice.
Download our invoice template in Excel format:
Who draws up the invoices?
If you run a large business, you will probably need to set up an accounts department or call in an external accountant. However, if you have a sound knowledge of bookkeeping, you can always do your company's invoicing yourself.
There's no need for self-employed entrepreneurs to ask an accountant to do their invoicing, as the formalities and documents are simplified under this status.
Make sure, however, that your invoices include the legal information required for the document to be validated by the authorities. We have produced an article on the obligations of a company, which will explain the essential information that must appear on your invoice. Don't forget to keep a copy of each invoice issued and supplied to your customer.
How do you send your invoice?
This is a detail to be worked out with your customer. You can send your invoice by traditional post, by fax or in digital form by email. If you send your invoice digitally, make sure you provide a document that cannot be altered by the recipient. In this way, you can avoid a lot of trouble if someone is dishonest.
Business invoicing is not as trivial as it may seem. To ensure that you are protected in the event of a disagreement, you need to draw up an invoice that complies with the standards set out in the French Commercial Code. Remember to check that all the legal information appears on your document.
Article translated from French