Creating an invoice

Invoices record money owed to you. This guide walks through creating, managing and reconciling them.

Before you start

You need at least one client (under Clients → Practice clients) and optionally a chart of accounts set up.

Creating an invoice

1. Go to Accounting → Invoices.
2. Click New invoice.
3. Search for the client — start typing the name and pick it from the results (works even with hundreds of clients).
4. Set the invoice date and, optionally, a due date.
5. Add line items:

• Description — what the charge is for.
• Quantity — number of units or hours.
• Unit price — the price before VAT.
• VAT % — the applicable rate (defaults to 20%).
• The line total and running totals update as you type.

1. Add more lines with + Add line, or remove them.
2. Click Create invoice.

After creating

• The invoice appears in the list as draft.
• When money arrives, click Mark as paid on the row — it moves to paid and records the payment time.
• Invoices past their due date automatically show as overdue in the dashboard and reports.

Statuses

• draft — created but not yet issued.
• sent — awaiting payment.
• overdue — passed its due date and still unpaid.
• paid — money received.
• cancelled — voided.

VAT

VAT is calculated automatically from each line's rate. The total is:

• Subtotal — the sum of line amounts before VAT.
• VAT — the tax on those lines.
• Total — subtotal plus VAT.

Tips

• Use Notes to record anything about the invoice.
• Convert a sent estimate into an invoice instead of retyping it (see the Estimates guide).
• Reconcile a paid invoice against your bank feed to keep the books straight.

Related

• [Estimates](/guides/estimates)
• [Reconciling your bank](/guides/reconciling-your-bank)