Introduction
What is invoicing? In plain terms, an invoice is a register that shows that goods and services has been offered to a client which otherwise necessitates the need for payment.
Most importantly, an invoice is a formal and official way to say, “make payment”. According to Annette Young’s post published on HelloBonsai, an invoice is your professional and polite way of saying “pay up”! Supposing freelancing is a new niche for you, or you began a petty enterprise, you could be perplexed about what invoicing is.
Here is what it is:
What an invoice is: A Description
As cited in the Cambridge English Dictionary, an invoice is “A document that lists things provided or work done, gives their cost, and asks for payment.” Invoices denote the amounts the clients’ or customers should pay provided the seller has offered the service required.
What is the difference between an invoice and a bill?
Usually, both invoice and bill are often used in the same context even when they are a little different. Invoices and bills are terms that literally mean the same. Each of them shows the amounts incurred for providing goods and rendering services.
Moreover, an invoice is usually sent by freelancers or enterprises that want to get payment from clients. On the other hand, a customer would use bills to keep payment records to sellers. Importantly, they mean the same but just used differently by the two actors in the business.
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What is the importance of invoice?
Invoices are legal records that indicate the service(s) or product(s) offered to a client. They are also required in the case that payment is wrongly done or overdue.
What is contained in an Invoice?
Having known what an invoice is, you would want to know what a professional invoice contains which includes:
- Date
- Invoice number.
- Your business contact information.
- The client’s contact information.
- An itemized list of any goods and services provided.
- Payment terms
Some of the most popular online invoicing software are:
FreshBooks
(from $6.00 per month)
Zoho Invoice
(free)
BQE Core
(from $7.95 per month)
Wave
(free)
Invoice2Go
(from $5.99 per month)
How to Send an Invoice
Invoices could be sent to clients by email. However, online invoice software makes the creation and sending of invoices quite simpler.
Once your invoices are prepared, try as much as possible to send it quickly. The sooner you send it, the earlier you get paid.
Conclusion
In essence, invoices are an important part of our businesses and creating one for your enterprise would not be a bad decision to take altogether.
Invoice software is one of the software that every freelancer must have.
Also, on the bonsai website you can find free invoice templates.
