What is an invoice? An invoice, which is also called a sales invoice, is a bill that is issued by a seller to a customer or client. It is essential for every business to keep a record of their invoices for tax purposes to ensure that a business pays the right taxes.
Sales Invoice – Excel Template
Product Sales Invoice Template
Small Business Sales Invoice Template
Often, businesses forget the uses of an invoice. An invoice can be useful not only for big businesses but also in small ones. If you are starting a business, it is always important to remember to keep a record of every transaction. You can download our sample sales invoice to guide you in creating one.
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What Is the Difference between a Sales Invoice and a Sales Receipt?
A sales receipt is basically a proof of purchase for the goods, products, and services sold. A sales receipt contains information of both the seller and the buyer. A breakdown of the goods and services sold are written in the receipt indicating the number of items and the total amount paid for by the client or customer. For example, if a client buys a particular product or a set of products, he or she pays for the items received. The seller then provides a sales receipt for the client stating the amount paid.
Unlike a sales receipt, a sales invoice is provided to the client before a payment is made. An invoice is also given to request for a payment. This contains a list of products and services a client has purchased. For example, if a client purchases a number of goods and services, depending on the agreed terms between the seller and the customer, a buyer allows the client to pay for the products in, say, 15 days. This is where an invoice is applicable. A seller requests for payment through an invoice. You may also check our Invoice in Excel available for download.
Sample Sales Tax Invoice
Sales Tax Invoice
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Why Are Invoices So Important?
An invoice is an important tool in every business. The only way for businesses to have a record of their sales is through an invoice. Running a business doesn’t just involve selling and providing goods and services, but record-keeping is also an essential process in maintaining and in the growth of it.
- As mentioned, invoices are an important tool in getting paid for the services and the products that you offer to clients and consumers.
- The use of an invoice will help you in keeping a record of your transactions. This enables you to monitor your earnings, income, and your expenses. The proper organization of your records will help you track your accounts receivable.
- Providing an invoice enables you to list a breakdown of the services or the products that you have provided as well as list the specific value of each product. This clearly lays out the services a client or consumer is paying for.
- An invoice will give your business a professional image. This maintains a good relationship with your clients. Clients will appreciate your business for providing an invoice.
- Using a Cash Invoice ensures that you get paid on time for the services and goods.
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