By Judith Cross - March 14 2018 02:40:13
An invoice is a pillar of the sales process. It is the main document that serves as a bill for the service or products your business has provided. A properly created invoice is a legal document that provides a binding agreement.
Invoices may be mailed or emailed or faxed to a customer. When a customer pays, the invoice number should be noted on the sales receipt and matched to the sales receipt in your accounting software, so it is clear that the invoice has been paid. The payment takes the outstanding amount out of your accounts receivable account.
An invoice provides a detailed account of the products or service and a set of other information that can vary a bit depending on the requirements in the country the invoice is issued and the type of product or service being sold.
I have heard from some clients that they do not necessarily need the long itemization that I have included in past invoices. At the same time, I have encountered clients who ask me to break down my invoice into very specific parts. When it comes to generating invoices, it is important to keep in mind that you are not making any money doing this. So, keep it simple and quick.
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