If you’re a business owner who plans to export your goods to a buyer in another country, you will need to provide a legal document that will serve as proof of agreement between you and the carrier

. For this, you will have to use a shipping invoice.

A shipping invoice is a document that goes by many names and is primarily used by sellers who send their shipments overseas. But why is this document so important, and how do you make one?

In this article, we’ll tell you everything you need to know about shipping invoices and show you how to create them effortlessly using an 

A shipping invoice serves as a binding contract and an agreement between you, the shipper, and the freight carrier.

 Also known as a "bill of lading," "trucking invoice," or "freight invoice," this legal document outlines the details of a shipment, such as:

This invoice must be shipped along with the goods sold so that both the shipper and the person receiving the shipment can sign it.

It’s most commonly used in international trade, and it can also be used as a shipping receipt once the goods reach their final destination. 

Essentially, a shipping invoice serves as evidence that the items sent by the seller have been transferred in good condition.

What is the Difference Between a Commercial and a Shipping Invoice?

People often mistake a shipping invoice for a commercial invoice, as the two documents are quite similar. 

Still, in fact, they are completely different

Firstly, a shipping invoice can function as a title of ownership because the responsibility for the products shipped is transferred to the carrier while in transit. Once the buyer receives the products, ownership of the shipment is transferred to them.

On the other hand, a commercial invoice can serve as proof of sale and agreement between two parties, but it cannot function as a title of ownership

Secondly, a commercial, or a business invoice, is required to identify the products being sent. This way, the customs officers can determine the shipment’s worth 

based on the taxes and other rates applied

doesn’t specify any taxes or any other duties applied

If you want to avoid any issues with your shipment, your invoice needs to include all the necessary information

. Here’s a breakdown of everything you must include in your shipping invoice:

#1. Shipper and Receiver’s Contact Information

The first section of your shipping invoice needs to clearly display your contact information, such as your full name, phone number, business address, email address, and a website (if you have one).

You also need to precisely enter the receiver’s contact details, including their name, phone number, address, etc.

When filling out this section of your shipping invoice, make sure to double-check everything. 

Your contact information needs to be correct, as the other parties may need to get in touch with you if there seems to be an issue with your shipment

#2. Date, Invoice Number, and a Reference Number

To avoid delayed shipments and any difficulties with 

, make sure to include a date and a unique invoice number in your document.

Properly numbering your invoices can help you keep track of them, which can make the annual filing of taxes and filling out the W-2 form much easier

But, most importantly, you need to enter the purchase order number or a reference number. These numbers are necessary for record-keeping purposes and for releasing the shipment for pickup or delivery.

In this section, you need to include any particular instructions and notes about your shipment for the carrier

. You can specify whether the shipment will be subject to a special designation depending on its contents.

For example, if you’re sending hazardous materials, you need to specify that they’re hazardous so that the shipment will be handled with care.

You must also choose the manner in which your goods will be shipped, such as sea, air, or land transportation.

#4. Descriptions of Goods and Pick up-Date

Next, you must describe the items that have been shipped in detail and state:

Type of container (e.g., box, envelope, etc.)

Also, don’t forget to include the overall net and gross quantities of the shipped items and the pick-up date

Once you provide a breakdown of your goods, you need to specify 

In the “Additional notes” section, you can include 

any additional charges that your customers need to pay

, such as service pricing, export transit, shipping services, etc.

You can also include a “thank you” note to maintain a friendly tone.

Now that you know what to include in your shipping invoice, you’re probably wondering how to make this important document

. You can either create it from scratch on your own using tools such as Microsoft Word or Excel, which can be quite difficult and time-consuming, or use an online invoice generator.

Using an online generator is considered a much easier and more efficient method, as it only requires you to

Fill out the required information in an invoice template

Once you’re done, you’ll instantly be able to print out your invoice so you can send it along with your shipment or forward it to the buyer of your goods via email.

Besides being an easier method of creating an invoice, you should use an invoice generator because it

. Instead of wasting time manually creating your shipping invoice from scratch, you’ll only need to fill out the empty fields in the template. On top of that, you can reuse the template for different clients.

. An invoice generator will provide you with a template that’s designed according to your preferences and has a professional look to it. This will ensure your clients know you mean business, and you’ll be more likely to stand out from the rest of your competition.

. By using an invoice generator, you will get a digital copy of this important document. This means that you’ll be able to store your invoices safely on a cloud, where you can access them at all times. To top it all off, your documents will be safe from any natural disasters and cyber threats.

Besides the shipping invoice, here are some other invoice types you can create with an online generator

At the end of the day, if you plan on shipping your goods to a buyer from another country, you will need a shipping invoice

. You’ll be able to use the document instead of a shipping receipt, and on top of that, it can act as proof of sale.

If you don’t want to waste any time creating your shipping invoice from scratch, feel free to use our online generator. We’ll provide you with a personalized invoice template that is easy to fill out and can be used for multiple different clients!

A shipping invoice is a legal document that outlines the details of the shipment and serves as a binding contract between you and the carrier.

The biggest difference between a shipping and a commercial invoice is that the latter can’t be used as proof of sale, while the former can.

Typically, a shipping invoice should include the shipper and receiver’s contact information, reference numbers, shipment instructions, and a description and price of the shipped goods.

Although you can make a shipping invoice manually from scratch, the best way to go about it is to use an online invoice generator.

A shipping invoice is a must-have legal document when exporting your goods. Use our invoice generator to create it with zero hassle!

What is a Shipping Invoice and How to Create One [2023]

If you are working on government or federally funded projects, a certified payroll is a must.

The failure to comply with and submit certified payroll requirements merits serious repercussions not only to you as the contractor but to the workers involved in the project as well.

Fortunately, this article will help enrich your background on certified payroll, from its history to the best practices for reporting it on your payroll and avoiding possible penalties for non-compliance.

A certified payroll, also called a federal payroll report, is submitted by government contractors to agencies in compliance with federal or state-imposed requirements. 

It is typically submitted by contractors who oversee and complete public works or programs funded by the government.

A certified payroll report declares the gross wages and withholdings paid and processed on the 

 of all the laborers involved in the project. Contractors use federal Form WH-37 in certified payroll reporting.

Certified payroll is most commonly used in the construction industry. 

For example, electricians, laborers, mechanics, painters, and plumbers are among the workers who are hired to complete federal infrastructure and development projects.

The demands that go into a construction job are no easy feat. That’s why submitting a document of compliance, such as a certified payroll, indicates that the contractor has dutifully paid all their laborers the proper and lawfully mandated compensation.

Certified payroll has recently become even more significant, thanks to the 

also called the Infrastructure Investment and Jobs Act

. The bill, signed by President Biden, provides funding amounting to $550 billion for roads, bridges, water facilities, broadband resilience, and mass transit.

The said coverage is effective for four years, from 2022 to 2026, with a greater focus on enhancing multiple infrastructures, such as transport systems, highways, and more bids for contractors.

Bigger projects entail more rigorous work, demand a broader range of skills, and impose more pressure on contractors to fulfill their duties adequately.

On March 3, 1931, then-Long Island, New York Representative Robert L. Bacon and former Pennsylvania Senator James J. Davis passed the Davis-Bacon Act (DBA).

 Davis and Bacon were prompted to improve working conditions for workers and protect them from displacement, especially while the global economy faced a massive decline.

 mandates improved labor standards and duly compensates local prevailing wages and benefits for workers in government-funded projects.

The DBA also prompted contractors to be more scrupulous in securing federal contracts, understanding the 

 to be delegated to their workers, assessing the materials to be used, and identifying applicable labor classifications and regulations to the projects they take on.

Prevailing wages are set rates for fringe benefits and wages established by the Davis-Bacon Act.

, these rates are to be strictly followed by agencies, contractors, and employers who have secured federal contracts for their operations.

For instance, if a contractor has a federal contract worth over $2,000, then their workers must be paid the prevailing wage.

Not all states have existing regulations on prevailing wage laws. That’s why it’s best to use the 

 to check the corresponding wage rate for each type of worker or job classification in your project.

What information should be included in certified payroll?

Here’s the employer or contractor information that goes on a certified payroll:

State the name of your agency and indicate whether you are a subcontractor or a contractor.

Provide the complete details of your business address, such as the specific street, city, state, and zip code where your business is located.

The payroll number indicates the weeks when work was rendered under your government contract. Payroll numbers should begin with the number ‘1’ and follow a sequential order for the succeeding payroll.

Project and location. Declare the type of project and the location where it is carried out.

Project or contractor number. Check your public works contract for reference.

Certified payroll usually includes the following employee or worker information:

 Include only the last four digits of your worker’s social security number.

 Indicate whether the worker is a mechanic, carpenter, plumber, etc. This is to help determine whether the proper threshold for prevailing wage is applied.

Calculate the total number of hours worked by the employee.

 Specify the hourly rate. Don’t forget to include worker’s fringe benefits and withholdings and ensure it reflects on your worker’s net pay.

 This section is not mandatory and whether it’s included in the certified payroll depends on the contractor.

Payments in your federal contract may be suspended or withheld by the government if found that you have failed to pay your workers’ wages.

You will be debarred or excluded from any future federal contracts. Debarment may be in effect for as long as three years.

This can either be a criminal or civil prosecution and takes place if you falsify payroll records. Possible consequences for this violation include fines or, worse, imprisonment.

Your federal contract will be permanently terminated.

When fulfilling certified payroll reports, government contractors are to submit the federal Form 

A typical setup for completing a certified payroll report involves a subcontractor, a contractor, and a federal agency. It consists of three steps, namely:

The subcontractor reports to the contractor, while the latter will submit a finalized report to the federal agency.

The form must be duly filled out with the necessary information about the contractor and their workers.

After completing the WH-37 form, there is a succeeding page that includes a statement of compliance.

The statement of compliance is a certification step where the contractor guarantees that all payroll forms bear the correct information and that they have submitted the complete documents for the certified payroll report.

It is the payroll manager or agency that typically signs the statement of compliance.

Indeed, committing mistakes on your certified payroll is no joke considering all the possible consequences that await. On the bright side, 

there are certain practices you can adopt to avoid these errors and secure full compliance with the DBA

, contractors may keep payroll records for a minimum of three years. File your records in a secure place and keep them organized.

 Construction projects entail different job roles, and each job role will also differ in terms of the corresponding prevailing wages.

 Always double-check your records when it comes to reporting 

 Make it a habit to verify the hours with your workers, preferably before the end of the week. This way, you identify any errors ahead of time and resolve them accordingly.

 Using outdated systems to check worker attendance only predisposes you to amassing errors in your reports. Switch to a digitally powered attendance system to track worker attendance and take note of any absences and discrepancies.

Check the appropriate prevailing wage threshold.

 Ensure that you apply the correct prevailing wage based on the state where your project is carried out. Compensate your laborers properly based on their job role.

Seek the assistance of a certified payroll specialist.

 Consulting the expertise of a certified payroll specialist is ideal if you aim for error-free certified payroll reports.

Contractors bear the heavy responsibility of overseeing federal-funded projects and securing proper wages and benefits for their workers.

 Non-compliance with the regulations in filing a certified payroll report merits serious repercussions and penalties.

At the end of the day, workers who take part in improving and creating facilities that benefit the general public deserve just payment and treatment for their hard work.

A certified payroll is a document submitted by government contractors to federal agencies.

It declares the gross wages and withholdings paid and processed on the paycheck of all the laborers involved in federal-funded projects.

Certified payroll originated from the passing of the Davis-Bacon Act (DBA), which mandates improved labor regulations and just compensation and benefits for workers in federally funded projects.

Non-compliance with the DBA has corresponding penalties, depending on the severity of the violation.

Contractors must enroll the correct certified payroll information in the WH-347 form before certifying their report on the statement of compliance.

Certified payroll is a must for contractors hired by federal agencies. It is a form of compliance with key labor practices and regulations.

A Guide to Certified Payroll: History, Best Practices + Example

Payroll cycle is the defining factor that prompts a stable flow of steps in accounting for all employee wages, taxes, and benefits.

 It’s akin to a roadmap you follow so you don’t miss anything in your accruals and expenses.

Some might argue that a payroll cycle flowchart does not leave that much of an impact on your HR and accounting processes. In reality, businesses of all sizes would benefit greatly from a solid structure to tie everything together.

This article will give you an in-depth look into what a payroll cycle is all about and why it is paramount to fulfilling your payroll responsibilities more efficiently.

So, let’s jump straight into the action!

A payroll cycle denotes the period or length of time at which a pay period occurs.

 It’s time between payrolls and serves as a guide for when employee salaries are to be prepared and created.

A regular payroll cycle could follow different timelines, such as daily, weekly, bi-weekly, semi-monthly, or monthly. There are also other payroll cycle types like retroactive, off-cycle, and final payroll.

The Importance of Payroll Cycles to HR Leaders

Whether you’re a CEO, accountant, or HR manager, understanding the importance and the different types of payroll cycle effectively takes a huge load off of your plate.

Think about it, if you hire 5, 10, 20, or more than 50 employees, you also need to 

adopt a more elaborate process to ensure they are all properly compensated

. When you factor in all other expenses and liabilities in your operations, missing payments and deadlines is not an option.

At first glance, a simple reference in the form of a payroll cycle may not seem like much. However, payroll errors are not to be taken lightly. Mistakes committed in payroll could possibly cost billions of dollars.

 for payroll tax errors which amounted to over $13.7 billion. 

Other common payroll errors observed by the IRS include inaccurate record-keeping, missing pay, miscalculated employee work hours, and failing to provide employees with their 

These are all errors that could be prevented if employers had a strict payroll schedule to adhere to in the first place.

The frequency at which you need to prepare employees’ salaries depends on when you calculate the payroll cycle.

It is essential to know that the variations of payroll cycles are subdivided into two major categories: normal and irregular pay cycles.

Normal pay cycles are aligned with the days and weeks when work was completed

 by employees. It is continuous and adheres to applicable federal and state regulations for tax adjustments and employee benefits.

Irregular pay cycles pertain to either one-time payments or adjustments done to wages. 

For instance, the pay is not part of the regular pay cycle, or it is set to be released once only.

Daily payroll cycle meanspaying employees, well, daily. 

It entails calculating employee salaries and tax withholdings accrued in 

This schedule is ideal for carpenters, electricians, plumbers, and construction workers.

 It is also a great option if you are experiencing difficulties hiring workers to fill temporary job positions.

Another scenario where a daily pay period would be appropriate is when employing additional personnel to handle a specific task only or work on 

Calculating holiday or weekend pay is not necessary with this type of payroll cycle. 

Workers can access the wages that they’ve worked hard for much earlier.

Daily payrolls also mean calculating tax withholdings and making adjustments for garnishments in 24 hours. 

Such a feat is a lot more complicated than it seems.

Managing up to 365 pay cycles will be costly without the help of payroll software to streamline the process.

employees are paid at the end of each week

top choice for companies with 50 employees or less

. It is easy to set up reminders and notifications for processing payments because it takes place on the same day each week.

In case you need to calculate overtime pay or pay your workers on an hourly basis,the weekly cycle effectively standardizes preparations for the succeeding payrolls.

The disadvantage to a weekly payroll cycle is the 

 needed to keep all processes well-regulated. At the same time, 

accounting for employee benefits and accrued payroll is also more rigorous

 since you must ensure you continuously abide by the regulations for proper tax withholdings.

a setup wherein employees are paid every other week

. That’s twice a month, or 26 pay periods each year.

The bi-weekly payroll cycle is quite common and 

 and in companies with a larger number of employees

. Most employees prefer a bi-weekly pay schedulebecause it is easier to keep track of the next time they receive their salaries.

Some industries where bi-weekly payments are suitable include healthcare, hospitality services, education, sports, and entertainment.

The accounting process for overtime pay and holiday pay is more straightforward, considering that the cycle consistently follows a chronological work week.

Contrastingly,a bi-weekly payroll cycle creates higher expectations for ensuring all salaries and accruals are calculated with more precision.

In a semi-monthly pay cycle, companies pay employees twice a month

 a year. This particular cycle is often confused with a bi-weekly payroll.

How does a semi-monthly pay cycle differ from a bi-weekly one? A semi-monthly payroll cycle follows specific dates in a month for when salaries are released to the employees.

These dates can either be on the 1st and 15th or the 15th and 30th/31st of every month. Meanwhile, a bi-weekly cycle follows fixed days in a given week. For example, salaries are released every Friday or Saturday.

Most companies with a large workforce use the semi-monthly payroll cycle because it provides 

ample time to generate funds to meet both pay schedules each month

enables large businesses to establish and retain a consistent flow of cash

Given that a semi-monthly cycle carries out payrolls twice a month, 

it also entails calculating tax withholdings and salaries for an increased number of days

. The workload will double, so there must be efficient and reliable accounting practices in place.

There might also be challenges in terms of 

because pay schedules in semi-monthly cycles tend to clash with the work week. The specified dates when salaries are sent to employees do not always fall on a weekday.

Employees are paid once a month in a monthly payroll cycle, or 12 times a year.

 In this cycle, payouts typically comprise a higher amount since there are more work days accumulated in calculating the total earnings of each staff member.

 because, despite calculating for more work days and possibly higher accruals, there are fewer employee records to work on.

That said, accounting for payroll accruals and allocating for the company’s expenses is simpler.

 may not benefit from a monthly payout. It all depends on the state regulations

. Some states do prohibit work setups with non-exempt employees, while other states require employers to compensate hourly wage employees weekly.

Besides the usual payroll cycles like bi-weekly and monthly, there are also other types of payroll cycles, which we’ll talk about in the following section!

A retroactive payroll is implemented whenever there are missed salaries from the previous pay period. 

There are various reasons why a retroactive payroll is carried out.

Read this article to discover the definition and importance of a payroll cycle in your business and choose the best option for your employees.

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