You should get invoicing for your business in order before you start trading. We’ve put together information about how you should invoice for your work as a new business owner.
You should invoice your client immediately after selling the goods or providing the service. Quick invoicing gives a professional image of your company — and ensures that the money due to you does not gather interest in your clients’ bank accounts.
Information on invoices
It is important to learn how to put the right information on your invoices from the start. The Value-Added Tax Act (arvonlisäverolaki) determines to a large extent which information should appear on invoices.
An increasing number of companies has completely switched to electronic invoicing, also known as web invoices. This is often a cost-effective way of sending and receiving invoices.
The Payment Services Act
The Payment Services Act (maksupalvelulaki) allows you to pass on the costs of accepting card payments or other payment methods to your customers, or to give discounts for using a certain payment method.
Payment terms and invoicing fees
As a business owner, what payment terms should you put on your invoices? And how much can you reasonably charge for sending an invoice?
By law, the maximum payment term for an invoice is 30 days. A longer payment term is only possible if the parties agree to it.
Base interest rates and late payment interest
If your client does not pay an invoice on time, you have the right to charge interest for the late payment. The rates of late payment interest are different for consumer and business clients.
If a client doesn’t pay
Prepare yourself for a client not paying an invoice for one reason or another. If that happens, you may have to send a notification of the payment due, or a payment reminder. As a last resort, you may have to use a debt collector. There is a difference between collecting debts from a consumer and another company.
Debt collection in business-to-business transactions
In business-to-business transactions, the debtor must compensate the seller for reasonable debt collection fees. However, the debtor does not need to pay debt collection fees if the debt was collected illegally or in breach of good collection practice.