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Invoice FAQ
What is an invoice?
An invoice is a bill for products or services rendered. By creating and sending an invoice, you are recording the fact that you provided a product or service and someone owes you 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. You also need a way to keep track of payments due. Invoices meet both of these needs.
How do I create an invoice?
You can use templates or invoicing tools. Include your business info, customer details, product/service breakdown, and payment terms.
What details must an invoice include?
Your invoice should include your business name, invoice number, date, customer info, product/service details, total amount, and payment terms.
Can I send invoices by email?
Yes, most businesses send invoices electronically via email as PDF attachments or through invoicing software platforms.
When should I send an invoice?
Typically, invoices are sent immediately after delivering the product or completing the service. Some industries may bill in advance or at agreed milestones.
How do I track unpaid invoices?
You can track unpaid invoices manually using spreadsheets or automatically with invoicing software that sends reminders and reports overdue payments.
Are invoices legally binding?
Invoices are important legal documents that prove a transaction occurred. They can be used in court if disputes arise over payment.
Can I include taxes on my invoice?
Yes, you should include applicable taxes such as VAT, GST, or sales tax based on your local laws and business practices. Clearly show tax rates and amounts.