What is an "Invoice"?

An invoice is a detailed document issued by a seller to a buyer, specifying the products or services delivered and the amount due. It typically includes the payment terms, such as the due date and any applicable taxes or discounts. Businesses use invoices as a formal request for payment and to track revenue and financial records.

Example

"The company sent out invoices for all completed orders, with a 30-day payment term from the date of delivery."

How is "Invoice" used in business?

In business, invoices are crucial for requesting payment and maintaining accurate financial records. They provide proof of transaction and often serve as legal documents in case of disputes. Proper invoicing ensures timely payment and helps businesses manage cash flow and tax filings efficiently.

Pro Tip

Always include clear payment terms, due dates, and accurate descriptions of goods or services on invoices to prevent delays in payment and disputes with clients.

Related Terms

Accounts Receivable, Payment Terms, Billing Cycle, Purchase Order