By Kelly Kemp - March 13 2018 17:48:21
An invoice, sometimes called a sales invoice, is a document sent by a provider of a product or service to the purchaser. The invoice establishes an obligation on the part of the purchaser to pay, creating an account receivable. In other words, the invoice is a written verification of the agreement between the buyer and seller of the goods or services. Invoices are an important part of your business s bookkeeping and accounting recordkeeping system because they record sales transactions.
Today, online invoice software makes it easy to create and send invoices. Cloud-based online software is available at any time, anywhere you have an internet connection and smartphone, tablet, or computer.
Invoices are sometimes confused with purchase orders. Purchase orders (POs) are before the transaction, and invoices are after the transaction. Purchase orders record an order by a customer to a vendor or supplier.
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.
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