What is an invoice number or invoice ID?
Learn more about invoicing numbers, the best practices for creating a numbering system, and why these numbers are essential to keep workflow moving in your business.
An invoice is a formal document — bill — that allows you to get paid for your goods or services. An invoice number is just one of the many elements that make up a standard invoice.
What is an invoice number?
An invoice number is simply a unique record number assigned to each invoice you issue. This number can be automatically generated by invoicing software, if you use it, or you can manually create one when issuing the invoice.
How to number invoices.
There are no particular financial regulations you need to heed when it comes to creating a numbering system for your invoices, but it is advisable to have a clear and consistent system that works for you. Here are some standard practices:
- Use company letters as an identifier. For example, the letters “PPS” could be used for Pigment Paint Studio, followed by the invoice number, such as PPS-0001. This would represent the first invoice issued to Pigment Paint Studio.
- Assign numbers to clients or companies. The first invoice for the client that has been designated as number 422, for example, would be written as 422-0001.
- Use the date the invoice was issued, such as January 1, 2021. This method would be written as 01012021-0001, 01012021-0002, and so on for all of the invoices issued that day.
Choose a numbering system that makes the most sense for your business, and remember to keep each invoice sequential to avoid any confusion. Start with invoice “0001” and continue your numbering from there.
Why is invoice numbering important in your business?
Numbering your invoices is beneficial to you as well as to your clients or customers. In fact, it’s a vital part of business recordkeeping.
As a freelancer or business owner, invoice numbers are useful for both accounting and payment tracking purposes, especially if you issue multiple invoices each month.
Invoice numbers are helpful for your clients, too. They can reference these numbers in their own internal accounting systems to indicate that particular funds allocated were for a particular purpose, as documented by a particular invoice.
With Acrobat Sign, you can integrate invoices into your workflow as well as collect legal digital signatures that help you get paid faster.
Find out what else you can do with Acrobat Sign.