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5 Different Kinds Of Business Invoices

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5 Different Kinds Of Business Invoices

How many different kinds of business invoices are there? You’d be surprised at the number of varieties, so let’s break it down by type. One of the most common kinds of invoices your company will issue is for subscription-based services or products. Your customers will pay you monthly, quarterly, or annually in order to gain access to your offerings, and you’ll create an invoice to bill them accordingly. A SaaS (software as a service) provider is one example of this kind of business invoices.


Credit Invoice

A credit invoice is just what it sounds like—an invoice you send to a customer after receiving payment for services rendered or goods sold. Credit invoices are great for keeping track of payments and establishing good customer relationships, and are especially helpful if you’re a company that regularly bills clients.


Debit Invoice

This is also called a bill to invoice because it represents a bill owed by your business. Once goods are delivered and payment is received, you send out an invoice to alert your customer that they need to pay up within 30 days. You can also use these invoices as an early collection technique if you have reason to believe that your customers may be slow in paying. This type of invoice serves as a reminder that money is owed and should be paid on time.


Recurring Billing Invoice

An invoice for a recurring service or subscription, such as a magazine subscription. Recurring billing invoices can also be automated to be sent via email by using agency billing software. For businesses, automatically sending recurring billing invoices can save you time and increase your payment rates. For customers, automatic renewal is convenient because they don’t have to worry about paying their bills on time; if they want to cancel a subscription or service, they simply need to log into their account online.


Commercial Invoices

The most common type of invoice is a commercial invoice. A commercial invoice is essentially a bill or request for payment from a vendor. It generally includes: an order number, an itemized list of products and services, total price, taxes and other charges, due date, and your company’s name and address. Commercial invoices are sent to businesses that owe you money; typically these invoices will be paid within 30 days.


Utility Invoice

This is probably most common type of invoice you’ll see in your business. They generally include a customer’s name, account number, address, and contact information as well as order details. What to include on your utility invoices varies by industry and also by your state or province so be sure to check with a legal professional if you have any questions or are unsure of what needs to be included.


Conclusion

For business owners who send invoices on a regular basis, it’s important to stay aware of invoice trends. Today, there are dozens of different kinds of invoices that can be sent in a professional setting. If you’re looking for more information on invoice trends, agency billing software and subscription billing software can help streamline your accounting process and make life easier for your team!



SOURCE: 9 Different Kinds Of Business Invoices


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