For every business, from startups to conglomerates, invoicing is the centerpiece of their proper functioning. Let’s breakdown this term to its simpler form.
An invoice is nothing but a bill or document that the seller sends the buyer notifying the payment terms. Payment terms may include the transaction list, payment amount and date, sometimes due amount to be paid too.
Invoice is an itemized bill for goods sold or services provided, containing individual prices, the total charge, and the terms.
Invoicing is a significant part of business as it is the element that enables quick payment of the services or products provided by them.
Invoicing is important for both the sender and receiver. For the sender it’s a provision for recording statements, tracking, and speeding up the payment. The recipient on the other hand gets the detailed itemized record. There are different invoices created by business for its various purposes.
Standard invoice – Most common type issued by businesses, industries.
Credit invoice – Issued for noticing a client about an offer, discount.
Debit invoice – Shows the balance amount to be paid by the client.
Pro-forma invoice – Invoice issued before completing the work stating the estimate.
Interim invoice – Intermittent invoices sent to the client during a large project.
The easiest way to create invoices is to use SimpleVAT Accounting. Here, creating and sending invoices can be done in a matter of seconds. It also allows you to manage your business accounting in a breeze.