By Mary Hernandez - April 10 2018 23:59:52
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.
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.
A bill is a request for payment. A bill is usually considered from the customers standpoint. It is common to receive a bill without an invoice, as in a restaurant or retail store. A bill is usually given with the expectation of immediate payment.
In the original article that I wrote about invoices, I stated that I just stick with a Word document. If I have time, I will change it to PDF, but that does not always happen. Another common practice that I have seen is using an Excel spreadsheet to generate the invoice. But one important consideration that I did not mention back then is the plethora of accounting software out there. Due to affordable small business-targeted options such as Freshbooks or Quickbooks, you may never have to generate an invoice yourself anyway. I have heard wonderful things about these applications, but have yet to check them out.
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