Save time and focus on growing your business by having all of your invoicing and accounting documents in one place. A sales invoice is an accounting document that records a transaction between your business and its clients. They offer you a record of the services you provided or products you sold to your clients, when those services occurred, and how much they owe you. Even if your company is just starting out, it’s important to begin the habit of creating sales invoices for each job. Some use the term interchangeably with other accounting documents like bills, sales receipts, purchase orders, or sales orders. Small businesses need to create accurate sales invoices to give to customers every time they make a sale.
Do what you can to send invoices directly to the person that will process the invoice. This isn’t always possible, but a direct line works to reduce email traffic, minimize the chances of your invoice getting lost in the shuffle and ultimately get you paid sooner. Always copy your primary contact into the correspondence to keep them updated. They give suppliers time to organize their inventories and prepare for delivery.
Which methods of payment can my clients use?
Boost your professional reputation and trustworthiness by sending PDF invoices to your customers. This Portable Document Format lets you send invoices the way they were originally created even after you convert them to PDF. They can be password-protected, and each change to your invoice leaves an electronic footprint. Use a Microsoft Word template when your primary concern is having options in your invoice design process. Word is known for letting you design invoices, as well as various kinds of documents and reports.
The difference between an invoice and a bill is the point of origin. Sales invoices are sent to request payment, from a business owner to a customer, after they provide products or services. When that invoice reaches the customer, it becomes the customer’s bill.
When should invoices be issued?
As you create an invoice, keep these tips in mind to ensure both parties are clear on payment expectations. With plans starting at $15 a month, FreshBooks is well-suited for freelancers, solopreneurs, and small-business owners alike. Want to learn more about creating an invoice for your small business accounting? Sign up, and try the software out yourself with our completely free trial!
These terms are used alternately for each other, but they don’t always mean the same thing. A sales invoice is a legal document that is more personalized, with the inclusion of information about the seller and the buyer. They’re also created for products sold or services provided on credit. A sales invoice tracks a sale and is a business’ way of requesting payment for a product or service.