What is an Invoice ?
Invoice (Definition)
Sellers send invoices to collect money from consumers. They reflect costs associated with the purchase of products or services, and generally include the names of both the seller and customer, as well as details about product or service, the net price, any taxes, and the gross amount owed. They will also include a deadline for payment. Invoices are legally binding and are used by both parties in financial records. Invoices have benefits for both businesses and customers:
- The are a legal record of the exchange of products or services
- Businesses can keep track of the money they are owed / paid
- Customers keep track of their spending
- Customers know when bills need to be paid
- Businesses can keep track of inventory
- Ability to forecast future sales based on previous data
- Keep track of business income for tax purposes
