Helpful Tips to Add Shipping, Discounts, And Taxes to Invoices


Adding details such as shipping, discounts, and taxes to your invoice is not just important to your client paying you on time but is also required as per regulations. In addition, having these details specified on the invoice goes a long way in helping you with business expense tracking.

Here are some tips to enabling you to add shipping, discounts, and taxes details in your invoices so that the customers are clear about the invoice break-up, helping you get your money faster.

For taxes

Determine all the applicable taxes beforehand
In India, since tax codes vary from state to state; ensure you collect the tax before adding the tax column to your invoice. For instance, some states only require taxes to be collected from businesses that are registered there. Also, if you are working remotely, you need to check the rate at which your service is taxed in that state. Besides, you may even require a permit before you can add a state’s taxes to your invoice.

Create clear subtotals
The same invoice may have items that are both taxable and non-taxable. In your invoice, if you have items that are taxed at different rates or do not carry a tax, it is prudent to have subtotals for each tax group.

Keep track and remit the taxes
Every time a client or a buyer makes a payment, make a note of it so that you can pay the right amount of sales tax on the invoice when it is due.

    Also Read: Top Benefits of Using a Free Invoice Tool

For discounts

• Figure out what kind of discount you want to give
There are a variety of discounts you can offer to your customers to incentivize brand loyalty. For instance, you can provide student discounts if a substantial portion of your customers fall under that category. Further, you can offer seasonal discounts, loyalty discounts, cash discounts and a discount for even ordering in bulk.

• Be clear on what all products the discounts can be applied to
With cloud-based invoicing software, you have the option of applying discounts to specific items or all of the items or services being purchased. This removes ambiguity and consequently fosters customer trust.

For shipping

• Add all the relevant details
Right at the beginning of the invoice, you need to specify your businesses’ name and address. Further, you need to add the name and contact details of the person to whom your product is being shipped. For record-keeping, you need to include the order number and any other reference numbers that may be required.

Aside from this, make sure that you specify what you are shipping, how much of it you are shipping, a brief description of the product, price per unit and also the total price. To prevent your customers from getting any nasty surprises, you also need to add the various miscellaneous charges involved in the shipping.

Most importantly, have an invoice number at the top for your accounts department to keep track of payments.

• Have a place for the customer’s signature in the invoice
To ensure that your customers are fine with the amount specified on the invoice and your terms and conditions in your shipping invoice for customs, including the last day to pay your invoice, have a designated space for your customers to sign.

• Payment options
Remember to add a note about the different payment methods that you accept to ensure the customer can clear your invoice conveniently.

    Also Read: How to Take the Stress Out of Tax Time

With invoicing software, such as CloudBooks, you no longer have to worry about manually preparing the shipping cost invoice, showing discounts on your invoice, and making the tax details clear every single time. You can automate the work of adding these details in your invoice for your client, saving precious time and money.