Invoicing

Create professional invoices in seconds. Clarth makes it easy to bill clients, track payments, and get paid faster — all MTD compliant with HMRC-compatible VAT handling.

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Creating Invoices

Quick Invoice

1. Click + in the top navigation
2. Select Invoice
3. Fill in the essentials:
   • Client — Select or add new
   • Line items — Products or services
   • Due date — Payment deadline
4. Click Send or Save as Draft

Detailed Invoice Setup

For full control over your invoice:

Header Details

• Invoice number (auto-generated, editable)
• Issue date and due date
• Purchase order reference
• Currency (default: GBP)

Client Details

• Billing contact and address
• Delivery address (if different)
• Client email for sending

Line Items

• Description of goods or services
• Quantity and unit price
• VAT rate per line item
• Discount (percentage or fixed amount)

Footer

• Payment terms and conditions
• Bank details for BACS payment
• Late payment interest notice (as per Late Payment Act)

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Products & Services

Save time by pre-adding your common offerings:

1. Go to Invoicing > Products & Services
2. Click Add Product
3. Enter:
   • Name — Product or service name
   • Description — Default line item text
   • Price — Unit price (ex VAT)
   • VAT rate — Default VAT treatment
   • Income account — Which ledger account to post to
4. Click Save

When creating invoices, select from your saved products to auto-fill details.

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Recurring Invoices

Automate regular billing for retainer clients or subscriptions:

1. Create a standard invoice
2. Click Make Recurring
3. Set the schedule:
   • Frequency — Weekly, Monthly, Quarterly, Annually
   • Start date — First invoice date
   • End date — When to stop (optional)
   • Next invoice date — Preview the next occurrence
4. Choose automation:
   • Auto-send — Email automatically on schedule
   • Draft only — Create draft for review before sending
5. Click Save Recurring

Manage all recurring invoices in Invoicing > Recurring.

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Quotes & Estimates

Create professional quotes before invoicing:

1. Go to Invoicing > Quotes
2. Click New Quote
3. Add line items (same as invoices)
4. Set validity period (e.g., 30 days)
5. Send to client for approval

Converting Quotes to Invoices

When a client accepts your quote:

1. Open the accepted quote
2. Click Convert to Invoice
3. Line items transfer automatically
4. Adjust quantities or add new items if needed
5. Send the invoice

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Payment Tracking

Invoice Statuses

Recording Payments

Full Payment

1. Open the invoice
2. Click Record Payment
3. Select payment method:
   • Bank transfer
   • Card (via Stripe)
   • PayPal
   • Cash
   • Cheque
4. Enter payment date and reference
5. Click Confirm

Partial Payment

1. Open the invoice
2. Click Record Payment
3. Enter the amount paid
4. The remaining balance shows as outstanding

Payment Matching Clarth automatically matches incoming bank payments to invoices. When a payment is detected:

1. Go to Banking > Transactions
2. See the suggested invoice match
3. Confirm or adjust the match

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Online Payments

Enable instant payment on your invoices:

Stripe Integration

1. Go to Settings > Payments > Stripe
2. Connect your Stripe account
3. Enable Pay Now button on invoices
4. Clients pay by debit/credit card
5. Funds arrive in your Stripe account within 2 days

PayPal Integration

1. Go to Settings > Payments > PayPal
2. Connect your PayPal account
3. Enable PayPal button on invoices
4. Clients pay via their PayPal account

GoCardless (Direct Debit)

1. Go to Settings > Payments > GoCardless
2. Set up Direct Debit mandate
3. Clients authorise recurring payments
4. Ideal for retainers and subscriptions

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Multi-Currency Invoicing

Bill international clients in their currency:

1. Create an invoice
2. Change the currency dropdown
3. Enter amounts in the foreign currency
4. Clarth automatically:
   • Converts to GBP using live exchange rates
   • Records exchange gain/loss
   • Maintains the original currency amount

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Invoice Templates

Customise your invoice appearance:

1. Go to Settings > Invoice Branding
2. Upload your logo
3. Set your brand colour
4. Choose a layout:
   • Classic — Clean, professional
   • Modern — Bold, contemporary
   • Minimal — Simple, understated
5. Customise fields:
   • Show/hide VAT number
   • Show/hide payment terms
   • Add custom fields

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Late Payment Recovery

Clarth helps you recover overdue payments:

Automatic Reminders

Configure in Settings > Invoice Reminders:

• 3 days before due — "Your invoice is due soon"
• On due date — "Payment is due today"
• 3 days overdue — "Payment is now overdue"
• 7 days overdue — "Second reminder"
• 14 days overdue — "Final notice before action"

Late Payment Interest

As per the Late Payment of Commercial Debts Act:

• Interest rate: Bank of England base rate + 8%
• Compensation charges: £40, £70, or £100 based on debt size
• Clarth calculates and adds these automatically when enabled

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Reporting

Invoice Reports

• Invoice Summary — Total invoiced, received, outstanding
• Revenue by Client — Who your biggest clients are
• Revenue by Product — Best-selling products/services
• Outstanding Invoices — All unpaid invoices
• Overdue Report — Invoices past due date

Access via Reports > Invoicing.

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