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Every business works on the principle of giving and taking. Companies either provide products or services for getting paid in return. In the process of getting paid, an invoice serves a crucial role. Imagine how you would raise a payment request without a professional invoice. For the same, businesses require online invoicing software.
With today’s blog post, we shall focus on the twelve different types of invoices used in business accounting.
What is an Invoice?
An invoice is a professional document prepared by the seller for the buyer. It includes detailed information about the products, services, or tasks that the seller sells to the buyer. An invoice document also has information related to payment, payment terms, seller’s business, tax summary, and invoice number.
Today, you will find all these detailed elements of an invoice embedded in a digital invoice generated via an online payment processing software like Moon Invoice. Our free online invoicing software has got all the invoicing elements covered to help you experience professional invoices within a tap of a finger.
What are the Different Types of Invoices?
Now, let’s move ahead and explore the different types of invoices. There are approximately 15 types of invoices that are meant for professional business accounting. We are here to explain to you the top 12 types of business invoices with our current blog post. So, let’s explore!
1. Standard Invoice
Generally, all businesses use a standard invoice format for sending invoices to their clients or customers. It includes all the major invoicing elements, including business logo, business name, invoice number, invoice details, contact information, payment details, payment terms, tax summary, etc.
While you are using online invoicing software, you get the standard invoice format to send across to your clients. Moon Invoice’s online billing and accounting software has got the most professional standard invoicing format to offer the clients onboard.
2. Credit Note
A credit note is also known as a credit invoice or credit memo. It is reflected in the invoice’s negative figure for helping the client understand the refund or discount you are mentioning about. Most online payment processing software has got the feature of the credit memo to offer.
3. Debit Note
Just like credit notes, you have the option of debit notes in your online billing software. Debit invoice is reflected in the positive digits and is generally issued to ask the clients for the increased or additional or adjustment figure.
4. Commercial Invoice
A commercial or business invoice includes more specific and detailed information about the product, including the shipping materials, shipping cost, customs duty, and much more. It is generally designed for companies that are in the manufacturing or export industry. It is more like a technical invoice shared between a buyer and a seller.
5. Time Log Invoice
We have all been aware of the invoice generator that has got the time log facility embedded in it to help the freelancers and consultants on and off the timer at the time of work.
Moon Invoice online invoicing software has also got the exclusive time tracking feature that helps you use both manual and automatic time trackers for recording your task time. It is indeed one of the best features that only online payment processing software can offer. Certainly, it helps to generate more accurate and faster invoices.
6. Recurring Invoice
When your business is a part of the rental industry, there are chances that you need to design recurring invoices. Designing recurring invoices becomes tiring and tedious at times. It also takes a lot of extra time to prepare the same invoices over and again.
For the same, an online invoice generator free software like Moon Invoice gives you the feasibility to design auto invoices for recurring format. It saves a lot of time, and the business owner can also concentrate on other things as recurring invoices are created automatically with a single click.
7. Mixed Invoice
We have already talked about the debit note and credit note invoice. The mixture of both a credit and debit memo is called a mixed invoice. Here the final amount is represented either as a negative or positive digit after calculating the settlement.
8. Expense Report
An expense report is a reimbursement invoice raised by the employee to the organization or the human resource department, or the accounts department. It includes a specific format where each expense is mentioned in detail with dates and receipts attached to it. You can try using expense report software for the same.
9. Pro-Forma Invoice
When we say a project estimate, we are relating to the Pro-forma invoice. Generally, an online invoice generator free software helps you send estimates and quotations to the client before the project begins. In technical terms, it is called a Pro-forma invoice.
Moon Invoice online payment processing software has got an excellent invoicing feature and estimates that help you share unlimited estimates and invoices with the client.
10. Interim Invoice
If you have heard about milestones, you must be aware of what an interim invoice is. There are certain milestones to be achieved often for which payments are to be released in the middle of the project. Such invoices are sent to the client in the middle of the project, called interim invoices. With Moon Invoice quick invoice generator, you can send multiple invoices in one go!
11. Final Invoice
The final payment of the project or manufacturing order is called a final invoice. Here the seller sends a final total of the entire project or sales to the customer or client at the end of the service. It looks more like a standard invoice covering all the essential elements of invoicing.
12. Past-Pending Invoice
In simple terms, the payments that are pending from the client end even after the final invoice reminder need to be sent as a reminder invoice for clearing the client’s dues. It is also called a past-due invoice.
Types of Invoices Summary!
All the above types of invoicing formats are easily feasible using our online invoicing software. For more information, you can either log on to our official webpage or can reach us directly at firstname.lastname@example.org.