Firstly it is important to remember that invoices are both sent out and received.
An Invoice is a legal document also sometimes referred to as a bill.
Invoicing is the function of sending out invoices to someone for goods they have purchased or services that have been provided.
When contacting others about invoice queries, make sure to be clear whether calling about an invoice received or an invoice sent. It’s easy to end up speaking to the wrong department.
An invoice should contain the following information:
- Unique invoice number
- Company name and details
- Customer name and details
- Amount payable
- Payment terms
- How to pay the invoice
A receipt is similar, as it is a record of a payment received in relation to an invoice. This is however a different document.
Sometimes, to simplify the process, invoices and payment receipts are sent as the same document. Laid out like an invoice but noting that payment has been received.
Invoicing should be one of the most important tasks when it comes to running a business.
If invoices are not sent, money will not be received.
An efficient system is needed to ensure invoices are sent out quickly and chased up if not paid on time.
If outstanding payments are chased quickly they are more likely to be paid.
Keeping on top of credit control can be a job all in itself but it is vital to ensure that invoices get paid and on time.