Invoices that get paid the first time

You did the work. Now you want the money, without three weeks of emails about a missing word. The good news is that most rejected invoices are rejected for the same handful of reasons, and all of them are easy to avoid once you know them.

When it’s all set up correctly, providers usually pay by bank transfer without fuss. The two things that still catch people out are rules that change without much warning, and a client’s budget running out.

What follows is what we’ve seen in Mallacoota, where local workers invoice two of the big providers every week, plus what providers publish about their own requirements. Each provider has its own rules, so if yours sends you a template, follow it.

What goes on the invoice

Think of it as answering the questions the person processing it will ask.

Who’s it from? Your name or business name, your ABN, and how to contact you.

Who’s it for? The provider’s name, then the client’s full name as the provider knows them. Some providers also want the client’s address or a reference number.

Which invoice is it? An invoice number you’ve never used before, the invoice date and a due date.

What did you do? One line per visit or service, with the date, the service type, a short description, the hours, your rate and the amount.

How do they pay you? Account name, BSB and account number.

GST. Whether GST is included, and how much.

Get the heading right

If you’re not registered for GST, head it “Invoice”, not “Tax invoice”, and add a line such as: No GST has been charged. The supplier is not registered for GST. Only GST-registered businesses issue tax invoices. You must register once your turnover reaches $75,000 a year.

If you are registered, it’s a tax invoice and you show the GST. Some aged care services are GST-free, so ask your accountant how your services should be treated.

The things that get invoices sent back

A vague description. “Support, 3 hours” or “Cleaning” can be returned. Say what you did, in the provider’s words where you can: Domestic assistance: general house cleaning, kitchen, bathroom and floors. We’ve seen wording that was accepted for months suddenly rejected, so if a provider changes its rules, change your template that day.

Travel on its own line. Many providers won’t pay travel to and from the client separately. Trilogy Care, for example, says plainly that it must be built into your rate. Driving the client somewhere is different: that can be billed as transport. Time spent on an outing with the client is usually social support or accompanied activities, not transport.

Bundling. Put each service on its own line. One line for “week of 12 October, 9 hours” makes the provider unpick it, and they often won’t.

More time than was agreed. If the agreement says two hours and the invoice says two and a half, expect a question. If a visit ran over for a good reason, say so on the line.

Maths that doesn’t add up. Hours times rate should equal the amount, line by line, to the cent.

An out-of-date insurance certificate. Some providers ask for a current certificate of currency once a year and hold payment until they get it. Put a reminder in your phone.

A wrong ABN. One digit out and it won’t match. The invoice checker tests the number for you.

Rounding and timing

Most providers expect time in 15 minute steps. Round the way your agreement says, and say how you round on the invoice, for example: Times are rounded to the nearest 15 minutes.

Invoicing every week is a good habit even if no one requires it. Small invoices are quicker to check, mistakes get caught while everyone still remembers the visit, and your cash flow is steadier.

Keep a copy of everything

Keep each invoice, the date you sent it, who you sent it to, and any reply. If something is rejected, keep the message and the corrected version. When a provider says “we never got it”, that record is your friend. The claims tracker does this for free on your phone.

Check before you send

Run your next invoice through the invoice checker. It takes two minutes, works on your phone, and nothing you type leaves your device. If you’d like someone to set up a template that suits your provider, Colin can help.