Agree the billing details before work begins
Ask who approves the invoice, whether a purchase order is required, and where it should be sent. Confirm the currency, scope, price and payment schedule in writing. This gives both parties a shared record when questions arise.
- Confirm the legal customer name and billing contact
- Agree deposits, milestones or final payment dates
- Get purchase order details before issuing the invoice
Use an invoice checklist every time
Make the document easy to understand at a glance. Itemize what you supplied, show the amount due and include payment instructions. Local tax rules determine which additional fields are required.
- Unique number and invoice date
- Clear description, quantity and unit price
- Discounts, applicable taxes and total in the agreed currency
- Due date, payment reference and payment instructions
Track balances rather than just invoice totals
An invoice for 1,200 with a payment of 400 has an outstanding balance of 800. Keep the invoice amount, payments and credits separately so a partial payment does not accidentally mark the full balance as settled.
- Invoice total − payments − credits = outstanding balance
- Record the date and reference for each payment
- Separate open invoices from overdue invoices
Reconcile billing with your sales records
For a product business, compare invoiced quantities with dispatch and stock records. For services, compare billed work with the agreed scope or milestones. Review outstanding balances regularly and investigate differences before issuing another bill.
- Match invoices to orders and delivery records
- Review overdue balances with the billing contact
- Keep invoices, adjustments and receipts together
Frequently asked questions
Is an invoice the same as a receipt?
An invoice requests payment and describes the goods or services supplied. A receipt acknowledges money received. Keep both records when you need to show what was billed and what was paid.
How do I record a partial payment?
Apply the payment to the original invoice and retain its date, amount and reference. Subtract payments and credits from the invoice total to calculate the remaining balance.