Giving your invoices random numbers is a recipe for confusion and disorganization. Instead, let us show you how to number your invoices quickly and easily—in less than 5 minutes.
First, here are the basics:
An invoice number is a unique series of numbers that differentiates one invoice from another. That means your invoice numbers should never be repeated.
Placing the invoice number at the top of your invoice is good practice for bookkeeping purposes, making it easier to track for both you and your recipient.
Why Proper Invoicing Matters
Invoices are essential for tax purposes, so make sure you keep track of them in a systematic way. The best approach is to ensure your invoice numbers follow a logical sequence for easy tracking.
Popular ways to number your invoices
1. Sequentially.
Your first invoice will be “00001” then your second, “00002”.
Tip: Try not to start with “01”, allow several digits to provide room for growth.
2. Chronologically (according to date)
So if you are creating the invoice on 11 June 2024, one way you can number the invoice is “20240611” (YYYYMMDD)
3. Customer Number
Imagine you have Nike as a customer, and they are the 10th customer in your books.
The invoice number would go “10-20240611”
(Customer number - YYYYMMDD)
4. Project code
So if you have multiple projects under Nike, you can start with the project code, then the customer number, then a sequential number
E.g. CLUB10-01
Format: Project Code - Customer Number - Sequential Number
5. Identifiers
If your business is called “Ben’s Computers”, you could use the code “BC” to form a unique code.
So your invoice numbers would look like: BC-00001, BC-00002
All you need to remember is:
- Each invoice number is unique
- Every new invoice should follow a sequence, building from the last invoice
Simplifying the Process
If this is all too difficult to process or remember, consider using invoicing software to save time on manual invoice numbering. This way, there is no risk of numbers being skipped or duplicated, and they usually save your invoices for you as well!
We hope this guide has made the process simpler for you. Happy invoicing!
