Invoice

[McNulty]

Hi all!

wondered when you invoice the customer, do you list what materials you have used followed by the total of the materials? Or do you just write the total plus 20% and not descride/itemise what you have used? Just didnt know if i had to prove what materials ive used on the invoice instead of just writing a total?

Cheers , Mcnulty

 

[petercj]

Hi all!

wondered when you invoice the customer, do you list what materials you have used followed by the total of the materials? Or do you just write the total plus 20% and not descride/itemise what you have used? Just didnt know if i had to prove what materials ive used on the invoice instead of just writing a total?

Cheers , Mcnulty

It's up to you how you structure your invoices.

A good compromise is to list the parts separately if people want such detail.

You are required to keep accurate accounts for HMRC.

 

[woodsy]

If i've given a price then i just lump everything together as what i've used is up to me. If its as a result of a call out then again i just lump it together unless they request a breakdown which then i believe they are entitled to in my opinion. I found early on when i wanted to be seen as transparent and show how honest and straight i was that i only caused problems for my self by showing all invoices broken down. Customers when given all the details will then question bits, prices and even hrs. Final straw was when an older chap questioned my 5hrs on the invoice as i had only been there 4hrs 40 mins.!!!

 

[nicro3]

Agree with Peter, as long as it tallies with your estimate/quote, plus extras, day work etc itemized in a way that can be understood

 

[McNulty]

how do i go about adding the 20%, do i add that into my labour or materials total cost? as i obviously keep my reciepts from the plumbing merchants for my accounts, the materials i buy for a job will match up with my receipts and invoive, so if i add 20% to the materials total cost to cover over expenses, the receipts wont add up from the merchants? or wont this matter as what materials i buy, i dont need to prove what job i used them on? or should i just add the 20% onto the total labour charges? see what i mean or is it just jiberish and im over thinking...

 

[markfxy]

Add 30% to the whole lot less 10% for prompt payment.

 

[SilentMike]

you put mark up on your materials. if your charging an hourly rate no need to add onto labour to cover you for stuff that might take longer then thought
it will add up cos you should keep a copy of your invoice

 

[McNulty]

cool thanks.

at the moment im keeping a copy of the materials receipt with the invoice on a job ive done, so if i wanted to add 20% mark up, it would not match my materials. but then every month i get sent a copy of my the materials i have bought from the merchant as im on account there, so that receipt is my record for accounts. So as long as i have that receipt from the merchant at the end of the month, theres no need to keep the copy of materials ive used with the invoice for a certain job is there? as this is confusing me....sorry seem thick but my heads in a pickle

 

[SilentMike]

keep receipts for everything. mark up is profit it counts towards your turn over
you will have your invoices to show your turn over then your receipts for everything that is deductable

 

[dontknowitall]

As little information as possible.

If they ask for more a simple breakdown of materials and labour.

If they want more (never happened with me) then a charge for the time to prepare a detailed invoice.



Invoice usually says:

To changing stop tap
To changing bathroom
To installing kitchen sink

Then a total.

99% of people are happy with this. The 1% are happy with a £50 labour and £75,000 parts.

 

[erpkid]

In a different life it was always quote cost plus 20 less 10 so win win. I use different figures now :wink_smile:. As others have said as little detail as possible......always. Internet heroes who will pick apart a bill and come back to you but as with everything the more you do this the easier it will be to avoid these types in the first place.

 

[petercj]

how do i go about adding the 20%, do i add that into my labour or materials total cost? as i obviously keep my reciepts from the plumbing merchants for my accounts, the materials i buy for a job will match up with my receipts and invoive, so if i add 20% to the materials total cost to cover over expenses, the receipts wont add up from the merchants? or wont this matter as what materials i buy, i dont need to prove what job i used them on? or should i just add the 20% onto the total labour charges? see what i mean or is it just jiberish and im over thinking...

Assuming that you're not referring to VAT, and that the 20% is your mark-up on parts, you can add that to a final figure, or add it to a list of itemised parts - it's up to you.

I think it's good practice to relate parts used to each job for the purpose of your accounts, then if ever HMRC did raise a query (they probably won't) but if they do, you can show detailed and accurate records.

If you are consistent in adding a 20% mark-up then the merchant's invoices will relate to yours, although they don't have to be precisely matched.

But if you work to a system and use consistency, a book-keeper or an accountant, or HMRC, will easily be able to see a pattern in your accounts and form an impression about their accuracy.

 

[stevetheplumber]

im in the keep it simply camp the less info a customer has the less room to quibble having said that if asked i willl do a n
more detailed bill if you doing quotes for insurance work they will want a break down

 

[petercj]

im in the keep it simply camp the less info a customer has the less room to quibble having said that if asked i willl do a n
more detailed bill if you doing quotes for insurance work they will want a break down

Very true.

On the issue of your general accounts, work out a system that enables you to keep track of how much you make on each job (within £20 or so).

Time spent + items supplied + sundry materials + an amount for overheads and general running costs.

When you work for yourself it's easy to think you are making more than you actually are - so keep an eye on what you are making after all the expenses and costs are deducted.

 

[johnnyplumb]

what's an invoice ?
in god we trust, everyone else must pay cash :cool4:

 

[SimonG]

On an invoice the info is minimal, unless it's oil related, then I have a list of all parts and what I charge them out at. As for linking materials to jobs then I tend to use the 'reference' when I'm at the merchants to charge things to certain jobs.

 

[REDSAW]

i'm with dkia. the price is the cost dont matter if i fetch extra or its old stock. its all in the price i quoted. unless its extra's

 

[leethegasman]

I would advize you have a meeting with your accontant or bookeeper to understand the acconting side of your company will be worth it in the long run

 

[AmritPedersen]

keep receipts for everything. mark up is profit it counts towards your turn over
you will have your invoices to show your turn over then your receipts for everything that is deductable

Mike's right. The invoices from the merchant are your business expenses & HMRC need these for your tax return. It goes like this, your mark up/profit & labour & materials & legitimate business expenses (talk to HMRC about this) make up your Turn Over. That is, all the money you have taken in the course of running your business. Then comes the fun: Deductions. All legitimate business expenses that you incur in the running of your business can be taken off the Turn Over. This includes stuff bought at the merchants, van costs, home as office, equipment, insurance, trade memberships etc etc (but do not take my word for this, get it confirmed by an accountant or HMRC).


So, long story made longer, its almost irrelevant to HMRC what you write on an invoice to a customer, as they will look at it as a record of your income. They won't care what you put down for materials. You could charge £100 for a 10p washer, but you can only claim 10p as a legitimate business expense.

Hope that helps.

My invoices have a list of materials with a sub-total. Labour would be on a separate line. OF course, I won'r list all the little bits, just have it as 'pipes & fittings' or such like.

Ooops, an essay. Sorry.

 

[AmritPedersen]

And, if you do manage to charge a customer £100 for a 10p washer, don't be surprised if they never use you again (or if they actually cough up). But if they do, I've a selection of bridges ready for sale. We can go 70:30. Interested?