Most of us must have heard about an invoice and even received it at any point of time may be an offline or online invoice. In the world full of receipts, bills, invoices and purchase order, do people really know what an invoice is and why the retailer needs it?
In simple words, invoice documents that a retailer sends to collect money owed to him for services he has provided or products sold. Invoice is more like a bill that shows order’s supplier, customers, service date, payment due date and about the services. It helps to develop a relationship between customer and supplier so that the suppliers get paid for the goods and services mentioned in the document.
Why does a retailer need an invoice?
You need an invoice because you need to keep a track record of all items or services sold. Businesses have to keep an accurate record of all business transactions and through invoices, you can monitor when, what, whom, where you sold a service. It also helps you in receiving payment. Invoices not only helps to keep accurate records but also ensures that your revenue remains steady and you don’t experience cash flow issues.
What is included in an invoice?
Here’s what should be included in the business’ invoice:
- Invoice terminology – Make sure that you use the word ‘invoice’ on the top of the document so that the customers are able to distinguish it from purchase orders.
- Invoice number – For the purpose of keeping records, each invoice is given a unique number on the basis of customer and bookkeeping practices.
- Customer information – The customer’s information you have included in the invoice depends on the type of business you have. Generally, business name, contact number, mailing address, billing address, email id is mentioned.
- Supplier information – You must include business information in your invoice in the same format as customers information is mentioned.
- Date of invoice – An invoice date is mentioned which helps the customers know how long they have between creation date and due date.
Other information like terms if payment, payment details, description of goods and services, shipping terms, taxes, etc are also mentioned.