Invoicing clients is an essential component of being a support worker in the NDIS industry. As the demand for services continues to grow and become more complex, so do the requirements placed on you when it comes to invoicing your clients. With this guide, we’ll walk through some best practices and tips for ensuring you get your invoicing process right every time with minimal stress.
What is an invoice
An invoice is a request for payment for goods or services. When providing services through the National Disability Insurance Scheme (NDIS), support workers generate invoices to ensure that all pre-approved costs are accounted for and paid on the agreed upon date. Invoices document the transaction clearly, showing both parties exactly what was exchanged in return for payment. They also provide documentation in case of any disputes or discrepancies that may arise down the line. Invoicing is an important part of doing business, so it pays to get it right from the start.
How to correctly fill out an invoice
When it comes to invoicing knowing how to correctly fill out an invoice is essential. To get your invoicing right every time, bear in mind that you must include your NDIS business name, your ABN, the participant’s name and NDIS number, the support item number, the dates of service, and the total invoice amount. By including these components, payment will be smooth and efficient. Utilising this knowledge to accurately complete an invoice can save you time and satisfy auditing requirements.
When should you send your invoices
Sending your invoices on time is very important! It’s recommended to issue an invoice after each service, so that the client can easily track their usage and progress. Aim to submit your invoices as soon as possible after each visit, but no later than 7 days after the completion of the service. This way you are more likely to get paid on time, and will also avoid any discrepancies or disputes. Remember that if you have a payment plan agreement in place, then you should follow the terms within that agreement. Knowing when to send your invoices is a key part of staying organised and on top of your finances.
The difference between an invoice and wage
Understanding the difference between an invoice and a wage is important for NDIS support workers. Invoices are usually only sent out when goods have been sold or services have been rendered, and they should include the details of any items that were purchased or services that were offered on a particular date. A wage, on the other hand, is a sum of money given to a person as compensation for labour done as part of an employment agreement. Wages by law have to be paid on a specific day whereas a business can be more sporadic due to time of submission, cut-off times, NDIS downtime, or public holidays. As an NDIS support worker, you may be getting paid in either one of these ways depending on your individual contract – don’t forget to check, so that you can ensure you’re getting the remuneration you deserve for your work!
Importance of Terms and conditions on contracts or quotes
The next step is getting the right invoicing processes in place to ensure proper remuneration for the services you provide. Part of this involves making sure that any contract or quote given has complete and appropriate terms and conditions included. Not only must these be clearly defined, but they should be tailored specifically to your particular services offered and agreed upon by all parties involved. Having a thorough understanding of the terms and conditions of any contract or quote can prevent potential disputes in the future, so it’s important to take some time to review them before signing anything.
Creating an invoice may seem daunting but this guide has hopefully given you a better understanding of invoicing vs a pay cheque and how to correctly fill one out. Remember that getting your invoice right means you get paid on time, so know your legal requirements and remember to book a chat with Amanda at tax time.