What is an invoice and how does invoicing work?
An invoice is a dated document recording a transaction between a seller and a buyer. Types of invoices may include a paper receipt, a bill of sale, debit note, sales invoice, or online electronic record.
In the event where goods or services are purchased on credit, the invoice should specify the terms of the deal and provide information on the available method of payment.
You are required by law to give your customer an invoice (or bill) if both you and the customer are VAT registered (i.e. for a business to business transaction) and you sell a customer a product or a service.
Invoicing is essential for small businesses. They are the business documents that enable companies to be paid for their services. A popular way to get started with invoices are to use invoice templates.