Introduction
Which sort of invoices are you using? Manual or Digital. Are you sending your invoices with a valid signature? Are the invoices that you get off justifiable in the absence of a signature?
In this fast-paced world, more businesses are transforming to online invoicing. Businesspeople now create their invoices with online invoice software and forward them through online platforms. Some owners will send the invoices with signatures, and some will send them without the signatures.
Often the signature will be missing in the system-generated invoice. But it is not a safe process to forward the invoices without signature and do you want to know why it’s essential to include signature?
Continue reading this article and explore whether an invoice can be considered legally valid without a signature.
What is an Invoice?
An invoice is an official document that reports the purchasing and vending process of goods and services. This invoice includes several details.
- Brand’s logo
- Client details
- Client’s contact information
- Invoice number
- Invoice date
- Due date
- Billing address
- Payment methods
- Terms and Conditions
- Signature
It serves as a document that generates trusteeship between the business owner and the client.
In the olden days, people used to create invoices on paper; later, the trend moved on to word processors. But the major drawback is that a large amount of data cannot be stored in this type of invoice.
Today, as the internet has set foot in every field, invoices are created through invoice generator software. Through this software, simple and accurate invoices are generated in a couple of minutes and clicks.
Signing Invoices: Invoices act as legal security for the business deal undertaken. A crucial factor that has to be included in the invoices is signatures.
What is the Role of Signature in an Invoice?
An invoice without a signature issued to the client can initiate a cheating process at any time. The client who receives the unsigned invoice may say that they have already paid the invoice, or the invoice is wrong. Here, the business owner cannot take any legal action as the invoice is unsigned.
But in case you have forwarded a signed invoice, you can register a complaint against the respective person. So, the major factor that serves as proof is the signature on the digital invoice.
It is a better option to include the signatures of both the client and the business owner on the invoice. Overall, including the signatures on invoices avoids fraudulent activities.
How do I get the invoice signed?
The steps involved in signing the invoices are not complicated ones.
- The first step you must take is to generate online invoices through small business invoicing software.
- Add your (business owner’s) signature in the respective field in the invoice.
- Forward it to the client.
- Request the client to add the signature to the invoice in the respective field.
By following these steps, you can include the signature in the invoices easily.
Benefits of Signing Digitial Invoices
1. Smoother Payment Process:
Once the client receives a signed invoice, confidence will be created in them regarding the business deal. The signature symbolises that the invoices have undergone all the necessary checks and have been approved by the owner.
This symbolism creates trustworthiness in the client’s mind, creates a good view about the business and makes them proceed with a smoother payment process.
2. Legal Validity:
The invoice itself acts as a legal document for the transactions carried out. But adding a signature provides more legal validity for both parties. The signature acts as the formal agreement for requesting payment from the owner’s side and completion of payment from the client’s side.
In any legal case, the signed invoices act as legal evidence. The jurisdiction only accepts the invoices with signatures. Using these signed invoices, a person can also claim some tax deductions if applicable.
3. Secured Digital Protection:
The digitally signed invoices ensure high-level security and protection. In a manual or handwritten invoice, the signature of the owner can be erased, or it can be changed. But in digital invoices, the signatures cannot be erased, or they cannot be altered. So, the signed digital invoices offer secured digital encryption and protection.
4. Efficient Workflow:
With the help of digitally signed invoices, the invoicing process becomes more efficient. There is no need for the processes of manual signing, taking photocopies, scanning documents, and printing processes.
As a result, it avoids the extra expenses, saves time, reduces the chances of a delay process, and reduces pressure in the client’s mind.
5. Usage All Over World:
As the online invoice includes digital signatures, it is accepted all over the world. The online invoices with digital signatures support cross-border commerce. It eliminates the traditional drawbacks of time, manual writing, and distance and enables to grow globally.
Best Practices for Professional Invoicing
Even if a signature isn’t required, sending professional, detailed invoices can help you get paid faster and avoid misunderstandings. Here are a few tips:
- Use invoicing software to create neat, organized invoices
- Include all necessary details like dates, totals, and payment instructions
- Send invoices promptly after delivering a service or product
- Keep copies of all sent invoices for your records
- Follow up politely if payment is delayed
- Be consistent in the layout and numbering of your invoices
- Consider including payment terms (like “Net 30” or “Due upon receipt”) to avoid confusion
Conclusion
An invoice doesn’t need a signature to be valid in most places. What truly matters is that it includes all the essential information—like your business details, the services or products provided, and the total amount due. While a signature can add an extra layer of security or professionalism, it’s rarely required by law.
If you’re invoicing clients, focus on clear communication, detailed documentation, and prompt delivery. These practices will help ensure your invoices are accepted and paid—signature or not. When in doubt, check the local business laws or speak with a legal or accounting expert to stay on the safe side.
Understanding the rules around invoicing will help you protect your business, avoid disputes, and keep your cash flow healthy.
