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What is it?

An Invoice is a document you can send to a customer requiring payment for goods or services that you have provided or will provide. It acts as a bill and a proof of a transaction. An Invoice usually includes a breakdown of the costs for the goods or services provided, the total amount due, and instructions on how payment should be made.

Why do you need it?

Cash flow is vital to any business. Getting the money you are owed by your customers or clients is key to survival. An Invoice allows you to set out clearly the type of goods or services you are providing, the price for such goods or services, and your payment terms.

By using an Invoice, you can keep track of the cash flow of your business. If you are a sole trader, an Invoice can help you monitor your accounts more easily. It also allows you to keep appropriate records of each transaction, as well as demonstrate to your customers that you are a serious and professional business.

Key clauses to watch for:

When drafting an Invoice, it is important to focus on a number of key clauses, in particular:

  • Details of your company;
  • Details of the customer or client;
  • Details of the goods or services that have been or will be provided to the customer;
  • Unit price of the goods or services;
  • Total price for the goods or services;
  • Payment instructions; and
  • Payment terms, including what happens if payment is made after the due date.

This document is also sometimes called:

Commercial Invoice, Bill

Invoice Document

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