Documentation of every transaction is a vital part of the business. As a business owner, you need to determine what the best account monitoring method is for your own organization. Most of the companies use a combination of receipts and invoices to record their transactions. Even though these two documents have similar functions, but they are a remarkable difference to each other.
An invoice is a document that is sent by the seller to their customer. Which is a request to the payment for products or services. Similar to a bill, it lists what goods or services were provided, how much they cost, and which forms of payment the seller accepts.
Invoices are typically issued to a customer after they have received their goods or services, but before payment has been received. Usually, invoices are printed and sent to a customer through the mail but they can also be sent electronically, which known as electronic invoices or e-invoices, Which is definitely the best option for businesses. An effective online accounting and invoicing solution can simplify the entire invoicing process.
Generating an invoice through a digital platform is a simple task, but there are a few important points that you should include. These points make huge differences between an invoice and a receipt. Where invoices typically contain more information about the transactions than receipts.
An Invoice includes:
- Brand, logo, and contact information
- The customer’s name and address
- The unique invoice number
- Date of the invoice
- Due date of payments and other payment terms;
- acceptable forms of payment
- A detailed description of goods and services purchased
- The total amount owed, including any taxes and fees.
While an invoice is a request for payment, a receipt is the proof of payment. It is a document confirming that a customer received the goods or services they paid. Though business firms are not legally required to provide a receipt for all transactions, receipts are virtually always given to a customer after they make a purchase. Receipts can either be physically or electronically given to a customer.
No matter how you choose to give them out, receipts are an important proof of purchase document for both customers and businesses. Customers need receipts in case if they have any issues with the product or want to return it, and you need to be able to verify that a customer’s claims are correct. Keeping track of customer orders and receipts can be difficult, especially if the customer does want to return or exchange something; a digital solution can make it much easier to track orders, send accurate receipts, and help the customers who demand assistance.
MyExps the all in accounting and the invoicing solution will help you in your accountings as online invoice, free services, cloud computing, customized services and many more. Online accounting solution is definitely beneficial for your business growth and financial monitoring.