An invoice is a bill for products or services rendered. By creating and sending a invoice, you are recording the fact that you provided a product or a service and someone has made payment for it.
Why do I need invoices?
If the product or service you’re selling isn’t paid in full up front, you need a formal way to request payment from your customer. You also need a way to keep track of payments due from specific customers. Invoices meet both these business needs.
Businesses need to collect invoices in order to make the monthly accounting reports, to calculate profit or loss, and to store them for 5 years at least for tax purposes. So all businesses need to receive invoices. By the ability to issue invoices, you increase your potential customer base, because some businesses can not pay for goods or services which can’t provide an invoice.
How to issue an invoice? You can find an invoice template and fill in your details. However, we just found a great online tool to issue invoices.
This online invoice generator doesn’t require you to sign up, just add your logo (if applicable), fill up the information, and then send out or download the invoice.