Why proper invoicing matters
As an independent sales agent, you need to invoice your principals for the commissions they owe you. A professional invoice is not just good practice. It is a legal requirement under Australian tax law, and it protects you if there are ever disputes about payments.
What to include on your invoice
Every invoice should contain:
- Your business name and ABN
- The word "Invoice" clearly displayed
- A unique invoice number (sequential is easiest)
- The date of the invoice
- The principal's business name and ABN
- A description of services (e.g. "Commission on sales for May 2026")
- The amount, excluding GST (if registered)
- GST amount (if registered)
- Total amount payable
- Payment terms (e.g. "Due within 14 days")
- Your bank account details for payment
GST on invoices
If you are registered for GST, your invoices must be "tax invoices" and include the GST amount separately. You charge 10% GST on top of your commission.
If you are not registered for GST (turnover under $75,000), you issue regular invoices without GST. Include the statement "Not registered for GST" on your invoice.
Setting payment terms
Standard payment terms for commission invoices are 14 or 30 days. Make sure your payment terms are agreed upon in your contract with the principal.
If a principal is consistently late paying, follow up promptly. Late payments can seriously impact your cash flow as an independent agent.
Invoicing frequency
How often you invoice depends on your arrangement with the principal:
- Monthly: Most common for ongoing commission relationships
- Per deal: For one off or infrequent sales
- As earned: When commissions are calculated and confirmed
Whatever the frequency, be consistent and timely. The sooner you invoice, the sooner you get paid.
Tools for invoicing
You do not need expensive software. Simple options include:
- Xero or MYOB: Popular Australian accounting software with invoicing features
- Wave: Free invoicing software
- Invoice templates: Microsoft Word or Google Docs templates work fine for simple needs
Zepys and commission tracking
If you sell through Zepys, the platform tracks your commissions and provides statements that simplify your invoicing process. You still need to manage your own invoices for tax purposes, but having accurate commission data in one place makes the process much faster.
Record keeping
Keep copies of all invoices you send and all payments you receive. The ATO requires you to keep business records for at least five years. Digital copies are perfectly acceptable, so store them in a cloud drive or accounting software.