What Information Is Included on an Invoice? This might seem like one of the more tedious aspects of doing business, but it’s important - well-managed accounting efforts can impact profitability. Accounts payable and accounts receivable departments should have a list of all invoices and invoice numbers sent and received so they can easily refer back to any given transaction. What Is an Invoice Used For?Īn invoice is used as a document to request payment from customers, though it also serves as a record-keeping document for the buyer and the seller. Invoices are a vital part of the accounting and cash flow audit process and are regularly used in business transactions. It informs the buyer the cost of those products or services.It informs the buyer what products or services the seller (or vendor) has provided.What Is an Invoice?Īn invoice is an itemized document that is an essential component of any business’ accounts payable and accounts receivable processes. Doing so will reduce your chances of having to resolve situations where customers aren’t paying invoices on time and can help you become a more savvy business owner. While the layout of a modern-day invoice looks quite different from 5000 years ago, its function in business remains the same.Įven if you’re a business owner already familiar with invoices, it’s helpful to brush up on the purposes of an invoice, the different types of invoices, and the invoicing process step-by-step.

In fact, invoices are one of the earliest expressions of written records, being traced back to 2900 BCE when merchants would carve details of transactions on stone tablets. An invoice is an essential component of any transaction between two parties.