To collect payment for the services or goods rendered.

To provide record of a transaction (the invoice number serves as the official record-keeper).

This will be important later on once we discuss the difference between an invoice and a bill.

Rather, pre-defined invoice payment terms determine when the buyer must pay. While customers must fulfill their obligations and pay invoices in full, invoice payment is often not required immediately. Invoices detail the goods or services provided, request payment for the goods or services, and act as a recordkeeping document. bill, we answered the following questions: what is an invoice, what is a bill, and how is invoicing and billing different from one another? What Is An Invoice?Īn invoice is an itemized document sent from the seller to the buyer following a B2B or B2C sale. To help avoid any confusion about an invoice vs. On their own, terms such as invoice, bill, and receipt might be simple to understand, but because terms like invoicing and billing are sometimes used synonymously, it can make life difficult for business owners new to handling accounting responsibilities.

a bill, potentially leading to even the most experienced accountants dealing with confusion when balancing the books. But depending on who you ask, you may get slightly different definitions of an invoice vs.

Often, you’ll hear the terms “invoice” and “bill” used interchangeably, and you won’t think twice.

Bill of sale for services rendered