![]() ![]() ![]() This document is sent by the seller to the customer after the bill has been settled. Invoices can also help you create revenue projections.Ī receipt is a document confirming proof of payment.Invoices help you keep track of sales for tax purposes.Invoices ensure prompt payment and, therefore, a consistent cash flow.Benefits of InvoicesĪn invoice is the single most important legal document in your company’s arsenal. Here’s why: A plumber, for instance, invoices a homeowner after fixing a leaky kitchen sink. However, invoices are also helpful in business-to-consumer (B2C) transactions. ![]() For example, after a web designer provides her services to a local restaurant, she invoices the eatery. Invoices are more commonly used in business-to-business (B2B) transactions. Description of the goods or services rendered.What is an Invoice?Īn invoice is a request for payment that’s sent by the seller to the customer after goods or services have been received. This document typically includes information such as: We discuss these distinctions in more detail below. While invoices and receipts both pertain to payments, some key distinctions are crucial to understand. One particular area of difficulty is discerning the difference between invoices and receipts. But sometimes this is easier said than done. Intuitively, business owners know they should keep track of the goods and services they sell. Accounting is a sore spot for all types of entrepreneurs, from freelance graphic designers to general contractors. ![]()
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