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What is an Invoice?
An Invoice is a document sent to a customer requiring payment for goods or services that a business has provided or plans to provide.
An Invoice acts as a bill and is an appropriate record for proof of a transaction and usually includes a breakdown of the costs for the goods or services provided, the total amount due, and instructions on how payment is made.
An Invoice is useful for keeping track of the cash flow of a business. For sole traders, an Invoice can help monitor accounts more easily.
Key points included
- Description of the goods or services;
- Unit price;
- Total price;
- Payment instructions; and
- Payment terms.