How do I create my sole trader invoices?

Invoicing your services is mandatory if you work in B2B. If your services are aimed at individuals, you’re only required to issue sole trader invoices under certain conditions. Either way, you can choose between a paper or electronic invoice. However, you should prepare for the digital transition, as the end of paper invoicing is scheduled to arrive soon.

When is an invoice mandatory?

If you use software like Bizyness, issuing an invoice takes very little time. On the other hand, if your sole trader invoices are drawn up on paper, the process takes longer. That said, in some cases you’re not required to produce an invoice at all.

Indeed, your services to a professional must always be invoiced, which isn’t the case for individuals. Sole trader invoicing only becomes mandatory:

• at the client’s request;
• for any service exceeding €25 including tax;
• for distance sales;
• for certain property-related works;
• for intra-community deliveries exempt from VAT.

I create my sole trader invoices on paper

Paper sole trader invoices are legal as long as they carry all the mandatory information. You must issue them in duplicate: the original for the client and a copy for yourself.

Paper invoices must be kept for 10 years. You must be able to present them in the event of a tax audit.

Using a blank sheet or an invoice book bought in stores

You can write your sole trader invoices by hand on plain paper, on your company’s letterhead, or in an invoice book bought in stores. You can also draft them on a computer and then print them.

The advantage of an invoice book is that it duplicates the invoice as you write it. It’s also handy for keeping track of your invoice numbering.

Paper invoices already banned for sending professional invoices to the State and public bodies

If you work with the State and public bodies, you can no longer use paper sole trader invoices, nor even send your invoice by email as a PDF. Since January 1, 2020, all services must be invoiced through the national public portal CHORUS-PRO.

The scheduled end of paper invoices

Paper invoicing for B2B services is coming to an end, which should push you to equip yourself to digitize your accounting. The goals are multiple:

• reduce accounting processing time;
• use secure transmission;
• reduce paper consumption;
• stop postal mailings;
• do away with paper archiving.

The move to digital invoicing

Under Article 153 of the 2020 Finance Act, from January 1, 2023, all companies will be required to accept electronic invoices. These will be considered the tax original. These digital invoices will need to be archived and will be the only ones with tax value in the event of an audit, whereas a paper printout will no longer be recognized as such.

The timeline requires that by January 2025, all companies must issue electronic invoices. A PDF invoice sent by email will no longer have any value, as companies will be required to go through a certified exchange platform.

The platform will check invoices for compliance before forwarding them to the recipient. It’s also the means by which the State can inspect all exchanges, as the tax information contained in invoices will be transmitted directly to the DGFiP (French Directorate General of Public Finances).

Platforms will be able to offer additional services: delivery note transmission, payment tracking, etc.

The timeline for the switch to electronic sole trader invoices

Acceptance of electronic invoices will in all cases be applicable from January 1, 2023.

The timeline for the obligation to issue digital invoices depends on your company’s size. If you’re a sole trader and exceed a certain revenue threshold, switching to your new legal status may change your deadline for electronic invoicing.

To reach full rollout by January 1, 2025, the obligation to issue digital invoices will begin:

• January 1, 2023 for large companies;
• January 1, 2024 for mid-sized companies (ETI);
• January 1, 2025 for all companies not covered until then: SMEs (small and medium-sized enterprises), micro-businesses, sole traders, etc.

Awaiting the implementation process…

The concrete implementation of the process remains unclear. The question of choosing between a private platform and a public platform - or both - is still open. Professional unions fear the State will set up a complicated, slow process that would end up cancelling out the benefits of electronic invoicing.

I use invoicing software like Bizyness to create my sole trader invoices

If you work with professionals, using invoicing software like Bizyness is an obvious choice. As the end of paper sole trader invoices is scheduled, you should digitize your accounting in the simplest way possible.

If you work with individuals, you have a bit more time before digitization becomes mandatory. However, since invoicing software gives you many advantages, it’s well worth trying. To help you see its value, Bizyness offers a 15-day trial period. You get access to all the features of the online invoicing software, without having to provide your bank details. It’s entirely up to you whether to continue at the end of the trial period.

The benefits of creating your sole trader invoices online

Professional invoicing software is easy to get started with. It lets you draft and customize your invoices, but its features go well beyond that.

The tamper-proof nature of your accounting and its archiving

Sole trader invoicing software gives you cloud storage space. This way, you don’t clutter your computer, don’t have to rent storage space, don’t have to worry about updates, and your documents remain permanently available wherever you are.

In the event of a tax audit, you simply access your archives to extract the documents requested by the tax authorities.

The software evolving with the law

Accounting laws change over time, and you yourself may change your legal status. Bizyness software is kept constantly up to date and adapts to all business statuses. If you exceed the thresholds reserved for sole traders, your accounting adapts to your new company. In the meantime, the software will have taken VAT calculation into account.

The centralization of all your information

Sole trader invoicing software lets you centralize all the information relating to your business. This simplifies your accounting, but it also lets you fine-tune your business strategy.

You issue your invoices, but also all other types of documents: quotes, purchase orders, proforma invoices, delivery notes, credit notes, various accounting exports (for yourself, your accountant, your banker, etc.), purchase ledgers, income books, etc.

Accounting tracking lets you check payments and monitor your cash flow. You log your one-off and recurring expenses, letting you keep an eye on your spending and look for ways to streamline it. What’s more, Bizyness always shows you an estimate of the amounts owed to URSSAF, so you can plan ahead for this monthly or quarterly outgoing payment.

You keep a record of your partners, clients and suppliers and can create very detailed profiles for each.

Automation for comfort and time savings

Sole trader invoicing software gives you comfort and saves you time, thanks to the automations you can set up: sending invoices, client reminders, syncing with your business bank account, syncing with your e-commerce store, etc.