Bookkeeper invoice template

How do bookkeepers usually invoice?

Bookkeepers invoice a fixed monthly fee based on transaction volume, with VAT returns, payroll runs and year-end preparation as separate lines, usually collected by direct debit on 14 day terms. Hourly rates apply to catch-up work and one-off tidy-ups, which are often invoiced in advance because the client is behind precisely because of cash problems. Software subscriptions are recharged or billed to the client directly.

Bookkeepers in this example give the customer 14 days to pay. Hourly rates run from £25 to £45.

What should a bookkeeper put on an invoice?

Beyond the legal basics, bookkeepers should:

• State the transaction band or hours included in the monthly fee and the rate for excess.
• List VAT returns and payroll runs separately with the period they cover.
• Invoice catch-up and tidy-up projects in advance or in stages.
• Offer direct debit; it halves the chasing and is expected in this trade.

Every UK invoice, whatever the trade, must also show:

• a unique, sequential invoice number
• your business name and address (and company number if you trade as a limited company)
• the client’s name and address
• the invoice date and, for VAT invoices, the date of supply if different
• a clear description of each item of work or goods
• the amount due and when it must be paid
• your VAT number, the VAT rate per line and the VAT total, if you are VAT registered

Do bookkeepers charge VAT?

You only charge VAT once registered, which is compulsory when taxable turnover passes £90,000 in any rolling 12 months. Below that, show no VAT line and no VAT number. Once registered, these services are standard rated at 20% for UK clients; services to business clients outside the UK are generally outside the scope of UK VAT.

On the Flat Rate Scheme the sector for bookkeepers is usually “Accountancy or book-keeping” at 14.5% of VAT-inclusive turnover, with a 1% discount in the first year of registration. If you spend little on goods you may be a limited cost trader and have to use 16.5% instead. The scheme suits businesses with few VAT-able costs; check it against the standard method with the VAT calculator before joining.