An invoice is distinct from a receipt, which documents and itemizes payment for goods or services.
When to use an invoice.
Vendors use invoices to inform their customers about payments and also to document transaction details. Invoices can help set and manage expectations for the time and manner of payments.
Digital invoices can help businesses and other vendors save time and money. Electronic invoicing, especially mobile invoicing, can make the entire payment process faster, smoother, and easier.
What to include in an invoice.
A professional invoice should include the following line items:
- Information about the parties, including the name of the vendor and customer, business addresses, phone numbers, and other contact information
- An invoice number, if applicable
- The date of the transaction and date of the invoice
- An itemized list of products or services, including prices and a subtotal
- Any deposits, prepayments, or other fees already paid
- Any discounts, bonuses, or waived fees included
- Sales tax, appropriate to the region in question
- Service fees or gratuities, if applicable
- Late fees or other penalties, if applicable
- The total amount due
- Brief instructions for payment methods
- The due date for payment
- Possible action in the event of late payment
- Any additional relevant information