What is an invoice?

An invoice is a document that shows a sale took place and requests payment from the buyer.

As a business owner or freelancer, it is extremely important to send invoices to get paid for your work.

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Elevate Consulting
TAX INVOICE
App Revolution

3332 Stevens Creek Blvd

San Jose

CA 95129 United States

Elevate Consulting

2132 Duncan Street

San Francisco

CA 94131 United States

Invoice number:1001
Invoice date:06/10/2025
Due date:06/24/2025
Product
Hourly rate
Quantity
Tax rate
Amount
Project consulting
$150.00
10
10%
$1,500.00
Subtotal:$1,500.00
Tax:$150.00
Invoice total:$1,650.00

Why invoices are important

Requests payment from the buyer

An invoice tells the buyer exactly what to pay, when to pay, and how to pay.

Documents the sale

Invoices are records of what was sold and help keep bookkeeping accurate.

Adds a professional touch

Clear invoices make your business look organized and trustworthy.

What an invoice should include

Use these core fields to create complete, professional invoices.

Seller and buyer information

Products or services sold

Unit prices and totals

Tax rates and tax amount

Invoice date and due date

Payment terms and payment method

What is an invoice, and other questions

What is an invoice?

An invoice is a document, usually PDF or digital, that confirms a sale and asks the buyer to pay.

Is an invoice a bill or a receipt?

They are different. A bill is usually presented at checkout, a receipt confirms payment, and an invoice requests payment.

What is an invoice in simple words?

It is your payment request sent to a customer for goods or services already delivered.

What is the difference between a bill and an invoice?

A bill is commonly used at point of sale, while an invoice is a formal payment request sent to a client.

Are invoices usually sent just after a sale?

Usually yes, but long-term clients may be invoiced on a schedule such as weekly or monthly.

What is an invoice used for?

Invoices are used to get paid, track sales, support bookkeeping, and prepare taxes.

What does it mean to make an invoice?

It means creating a payment document for the buyer with all relevant sale and payment details.

What does an invoice usually include?

It includes buyer and seller details, items sold, prices, taxes, totals, and payment instructions.

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