What Are the Different Types of Invoices That Businesses Use Today
Each small business was owed an average of $84,000 in unpaid invoices from clients.
If you want to make sure that your business is successful and has sufficient cash flow, you’ll need to be familiar with the different types of invoices.
Keep reading to discover all the types of business invoices you’ll need to be familiar with.
You can use an invoice template for almost any standard invoice. These are sent from a business to a client, and they’re the most common types of business invoices.
This is a flexible format that you can use for almost any industry or billing cycle. Standard invoices will normally include an invoice number, the amount of money the client owes, the client’s contact information and name, and the business’s name and contact information.
A sales invoice is sent from a business to the customer for the sum they owe. Sales invoices are important for your business and accounting and bookkeeping.
A sales invoice will include the name of the business and customer, the date of purchase, invoice number, the items that a customer bought, the quantity, and the total amount owed, along with any discounts.
A small business owner might also send a final voice, which is sent when you finish a project. This lets the customer know that you finished the work and now you’re ready to be paid.
Your final invoice should also include the list of products and services, the due date, payment methods available, and the total cost.
Send these invoices as soon as possible, either online or through the mail, once you finish the job. This way, you’ll be able to promote your cash flow.
A debit invoice is also sometimes called a debit memo. This is when you need to increase the amount that the client owes a business. Small businesses or freelancers can use the debit invoices if they need to make an adjustment to one of the financial invoices.
For example, if you worked extra hours and need to charge for that, you’d send this type of debit invoice. They’re also always written as positive numbers.
Past Due Invoice
You can send the past due invoice when the customer doesn’t pay. You’ll send this type of invoice as a reminder to urge the customer to pay as soon as possible according to a new due date.
You’ll want to remind them how much is due, what payment methods you accept, and when it’s due.
Discover More of the Different Types of Invoices
These are only a few of the different types of invoices, but there are many other types that your business might send out.
We know that running a business can be stressful, but we’re here to help you out.
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