leftmobile.blogg.se - Invoicing vs billing

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It is a legal document used for financial reporting.Ĭlear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India.

They are used to request payments from their customers for goods already sold or services already provided.īills are issued for cash transactions that are completed in one go.įor example, when Mr X has dinner at a restaurant, he will be issued a bill to be paid upfront. Invoices are usually used for credit transactions with specific due dates for payment. Even if they are numbered, it doesn't have significant legal importance as it is used only for the businesses’ administrative purposes. Invoices are assigned a unique invoice number for accounting and tax purposes.īills aren't numbered. Invoices are issued in a specified invoice template containing specific details such as invoice number, date of issue, due date, business name and contact details, customers contact details, tax details, amounts due, etc.īills usually don't contain customer information.īills contain limited details such as the amount charged for the sale, including any taxes charged on the same. The invoice contains customer information. Some of the differences between an invoice and a bill are discussed in the below table: Particulars

It also serves as a reminder for payments to be made.īill is a generic term for documents, whereas the invoice is a specific term.

It serves as a record for the buyer of goods regarding its purchases.

A bill is issued before payment is made.

Some of the common examples of billing are billing done at supermarkets, restaurants, etc. Still, the word invoice is used by the provider of services, whereas the customer records the same as a bill against which payments are to be made. Both invoice and bill contain the same information regarding the business transaction.

The company uses it to keep track of sales made.Ī bill states the amount owed by a customer to the vendor.

The seller uses it to request payment to the buyer by a specified deadline.

It serves as a legal document for record-keeping purposes.

It serves as a record of the goods sold or services provided.

It is a legal document that is to be prepared in a specific invoice template. An invoice refers to an accounting document issued by a business to its customers containing details about goods sold or services provided and the amount charged for the same.