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What Is an Invoice Number & How to Number Invoices

invoice number

When it follows invoice number format best practices, discussed in detail below, your invoicing system can become one of your best assets for managing the money coming in. Creating professional invoices helps to make your business look legit. But there’s more to an invoice than just adding your business details, client details, and the total for the products or services rendered. Using a free invoice template can simplify the process of creating your next invoice. Using Skynova, you can create and send professional invoices in minutes using our standardized template to ensure that your invoices are consistent and sent out promptly.

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The tax invoice templates are pre-formatted and allow you to simply fill in the required details, make changes as per your business needs, and send it to your customers for payment. Invoice numbers aren’t limited to sequential or chronological invoice numbering systems. Custom invoice numbers are entirely up to the business issuing the invoices.

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Many businesses opt for a system of invoice number meaninging that takes the current year, such as 2021, and goes up from there starting with ‘202101’ or ‘210001’. The next system is to start with your customer number, which will help you quickly identify invoices on a customer basis. As such, it’s a good system to use if you have a lot of customers on the books.

invoice number

Don’t leave the number out:

Chronological numbering includes the date of the project completion as the invoice number. Although you can format your invoice numbers in any way you want, they need to be in sequential order and cannot contain any repeated numbers or gaps. Regular review of your invoicing records can help catch errors early. If you find a mistake, address it right away to keep your invoicing system running smoothly. Say you own a business that does contract work for other companies. A client hires you for a new project that will span the course of three months.

However, you can change the invoice number to better suit your company’s invoicing practices. Ultimately, it’s always wise to do what’s best for your business—that’s why we’ve built QuickBooks invoicing software to be intuitive and customizable. Sometimes, a client may request information about past transactions they made with you—or you might be curious about them yourself. By having well-organized financial records and invoices, cataloged thoroughly using your invoice number system, you can quickly and efficiently find any past payment in your system.

Send Invoices On The Go

Jami Gong is a Chartered Professional Account and Financial System Consultant. She holds a Masters Degree in Professional Accounting from the University of New South Wales. Her areas of expertise include accounting system and enterprise resource planning implementations, as well as accounting business process improvement and workflow design. Jami has collaborated with clients large and small in the technology, financial, and post-secondary fields.

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What Should an Invoice Include?

  • Letting customers know you offer discounts for early payments or charge late fees on overdue invoices may encourage them to make timely payments.
  • Credit invoices work the opposite of the other kinds of invoices on this list; they are used to give money to another party rather than request it.
  • Interim invoices are issued when a large project is billed across multiple payments.
  • So, if something comes up in the future, it’s easy to look through old invoices to find the source of the issue.
  • POs are a key part of the procurement process and help ensure accurate record-keeping and smoother transactions between buyers and sellers.
  • Hence, it’s prudent to choose a suitable numbering system that would remain effective as your business expands.

Assigning Invoice Numbers

invoice number