To request payment from clients for products/services provided.The functions served by invoices include:

They are useful in keeping a complete record of the sales transactions your business makes with your clients. Invoices are used as a source document for business accounting. You should not simply delete the incorrect invoice from your records as this could lead to accounting problems later. If you issue an incorrect invoice to a client, it should be cancelled and a new invoice issued with the correct information. They keep track of your revenue, monies owed to you by clients, and in the unfortunate case of a client not paying you, record bad debts that are written-off.Īn invoice is a legal document. Invoices are an essential element in managing the accounts and financial records of your business.

The formal definition of an invoice, as offered by the Oxford English Dictionary, is as follows: “A list of goods sent or services provided, with a statement of the sum due for these a bill.” Thus, an invoice is a request for payment. It specifies what the customer must pay you according to your payment terms.

ContentsĪn invoice is a document you (the seller) send to your customer or client (the buyer) that indicates the amount and costs of the products or services that have been provided by you. In this article we will briefly explain the function of an invoice, how to generate one on your own (you can use our free invoice templates for this) or with our free invoice maker, how to the invoice to your client, and what to do when you receive the payment (or when you don’t). Welcome to this guide to invoicing with our free online invoice generator.

Invoice pdf creator