Capterra Glossary
Invoice
An invoice is a business document that lists the products or services provided by a seller to a buyer. Typically, an invoice includes an invoice number, the name and address of both the buyer and seller, a description of the items and/or services purchased, any related fees, payment terms, the quantity and price per item or service, and the final monetary total owed.
Businesses use invoices to accurately track their revenue and expenses. Invoices also help businesses decrease the risk of miscommunication with their customers and business partners regarding financial transactions.
What Small and Midsize Businesses Need to Know About Invoice
Small businesses often use invoices to keep track of money going in and out of their company. This helps them maintain accurate financial records, resulting in an accurate assessment of the financial health of their business at the end of their fiscal year. Invoices also help small businesses ensure that they are paid for their products and services on time.
Related Terms
- Compound Annual Growth Rate (CAGR)
- Financial Planning and Analysis (FP&A)
- Selling General and Administrative (SG&A) Expenses
- Hedge Fund
- Gateway
- Record to Report (R2R)
- ROIT (Return on Information Technology)
- Chief Revenue Officer (CRO)
- SAC (Subscriber Acquisition Cost)
- ROE (Return on Equity)
- Tokenization
- Net Present Value
- Fintech
- Financial Management System (FMS)
- Business Capability Modeling