Think about the itemized bill you received at the end of a restaurant purchase. When you receive a bill, it implies a payment is due. They may seem the same, but a “bill” has a more subtle connotation. A bill should have the totals of the goods and services that have been exchanged. The bill should have a date provided and the date of the transaction. This can serve as an abbreviated reference for later billing reconciliation. This extends to both the business and the customer, and can be as extensive or as minimal as both parties feel is fit. Any business, service or individual who initiates a transaction with any sort of customer can create a bill for their records and the customers’, respectively.īills are generally provided immediately upon the transaction completion, serving as a form of communication (regarding the pricing and totals) and documentation. The definition of a bill is a formalized record of information about a purchase, including basic elements such as items, pricing and any applicable local, state or governmental taxes. All goods and services provided should be clearly outlined and explained to the customer in a way that limits liability. Line items should be designated by the amount owed per item, all of which total to a singular end amount. This can be simple (such as a name and address), or it may be expanded to include both parties’ emails and phone numbers. Your invoice should provide the company information, as well as the client’s information. Now that we’ve clarified invoice meaning, it’s time to look at what should be included in an invoice: An invoice will also identify remittance (or payment) instructions and can be authenticated using a secure e-signature system. If there’s an account dispute, invoices can be used as legal documents to support either side’s claim. In addition to a description of the products or services provided, an invoice will state the amount due, the due date, and list the most recent previous payment. It can be on paper or in a digital document such as a PDF. The definition of an invoice is “a business record used to describe and itemize products sold or services performed.” Moreover, whether you’re the sender or the receiver really determines using an invoice vs a bill. Although the two terms are closely related, and in some cases interchangeable, there are times when only one is correct. It’s important to understand the difference between an invoice and billing statement because neither word is just a synonym for the other.
Learn the important differences between bills and invoices so that you’ll know which one to send and why. The words “invoice” and “bill” are often interchangeable - but not always.
0 kommentar(er)
