Every new business owner will eventually be faced with the prospect of being overwhelmed by paperwork, and navigating through all this can become a real skill. One of the most useful documents you’ll come across as a business owner is the invoice, and if you have a good understanding of the purpose and information contained on an invoice, it will serve you well throughout your business career.
What Exactly Is an Invoice?
An invoice is actually the bill presented by a company that provides a product or service to a customer, and this bill is either transmitted electronically, sent via postal mail, or hand-delivered to a customer. Once the invoice has been issued, it creates an account receivable for the business issuing the invoice, and this amounts to a payment that is due to your company. The nature of an invoice is that it provides documented verification of a business agreement which has been undertaken between a purchaser and your company.
What Information Goes on an Invoice?
The information which goes on an invoice is very important, and it’s surprising how few entrepreneurs actually realize the kind of information contained on an invoice. You can save yourself a lot of headaches and confusion by including only the necessary information on an invoice, and by making sure to include all the important data.
The most important information to record on a business invoice includes all the following: the names and addresses of the customer and of the supplying company, the contact information of both buyer and seller, the date when the invoice was created, the quantities and prices of any goods or services which were sold, a description of the goods or services provided, and all terms of payment, including the due date of the invoice. Anything less than this data on an invoice will leave it incomplete, and anything more might just serve to confuse the issue.
Are Your Customers Slow in Paying Their Invoices?
Many companies have cash flow problems simply because of slow-paying customers. If your company is in this situation, we may be able to help your cash flow situation, so contact us at Ambition Funding Solutions to discuss some funding options.