By Kelly Kemp - March 14 2018 03:05:21
An invoice, on the other hand, records the receipt of the product or service and, as noted above, the terms of payment. Purchase orders are used by many companies as part of an approval process. Some companies require purchase orders for products or services over a specific amount.
An invoice serves several purposes. It is not just the catalyst that gets you paid, although I would venture to say that is the no 1 role, huh?
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.
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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