In the USA, a bill for goods or services is referred to as an invoice. A US invoice should show the issue date (needed to establish the period to which the payment belongs as a tax-deductible expense and as taxable income), the due date (e.g. due upon receipt), a description of the services supplied, the client’s details and, of course, the issuer’s details (at minimum an address and the state of incorporation). If any of these details is missing, the expense may not be accepted in the event of a tax audit.

In the USA, payments can be made by cheque or in cash. A cheque must always carry the company name, and once the bank has cleared it, the bank will either send you a scanned copy or return the original. Paying by cheque lends credibility to a transaction, because the bank verifies the identity of the payee.

We will be happy to send you a sample US invoice on request – simply use our contact form or send us an email.

Good Invoicing Practice for a US Company

Clear, consistent invoices are essential for any business, and a company operating in the United States is no exception. Well-prepared invoices help you get paid on time, support your accounting records and make it easier to justify income and expenses if the tax authorities ever ask questions. For owners managing a US company from abroad, they also provide a clear audit trail of transactions.

Information Worth Including

While formats vary, a professional invoice from a US company will usually include:

  • The company’s legal name, address and state of incorporation
  • The customer’s name and address
  • A unique invoice number
  • The date of issue and the payment due date
  • A clear description of the goods or services supplied
  • Quantities, unit prices and the total amount due
  • Any applicable sales tax, where relevant
  • Payment instructions

Sales Tax Is a State Matter

The United States does not have a federal VAT. Instead, many states and local jurisdictions impose sales tax on certain goods and services. Whether you need to collect sales tax depends on what you sell and where your customers are, and the rules differ considerably from state to state. If your business sells to US customers, it is worth checking your obligations in each relevant state.

Payment Methods

Cheques are still used in the United States, although electronic payments such as bank transfers and card payments are now very common. Whatever method you accept, make sure your invoice states the details clearly and that payments are recorded against the correct invoice in your books.

Keeping Records

Invoices, receipts and bank records should be kept in an organised way, as they support the figures reported on your tax returns. Consistent numbering and a single accounting system help ensure nothing is missed.

Invoicing Customers Abroad

If your US company invoices customers in Europe or elsewhere, those customers may have their own requirements, for example regarding VAT information. Checking these in advance avoids delays in payment.

Contact eTuls for help with bookkeeping, invoicing and tax compliance for your US company. We can also provide a sample invoice template on request.