Having an effective invoicing system is very crucial for your business. It helps send out invoices on time which in turn keeps finances flowing and your business running well.

When running a successful business, many tools are available that will help you take it to the next level. One of these tools is an invoice, which typically most businesses use to bill customers for services rendered.

However, invoicing isn’t a one size fit all kind of tool; there are different types of invoices for various situations. Read to learn the various kinds of invoices available today.

Proforma Invoice

This is an estimated bill of sale provided to the client prior to the completion of the service. It’s a promise to supply products or services that aren’t yet delivered. It specifies the labor to be done, the amount, and the price for the products or services.

The most essential part of any business dealing is cost. Most dealers you associate with will want to know the total cost of the services or products you offer. This is where a proforma invoice comes into play.

Interim or Progressive Invoice

A progressive invoice, also known as an interim, is an accounting system in which a company bills a customer for a typically large project. It’s done in intervals, invoicing for the proportion of the project that has been completed to that time.

As a small business owner and you contract a long-term project, you may not have the luxury of waiting till the project is complete. You can create invoices and send them to the company you’re working for, for the period and work done. This means you get paid as you continue working on the project.

Final Invoice

As the name suggests, a final invoice is a billing method that lets your client know that the project or service is complete, and as such, they can make the payment. In other words, a final invoice is like a demand for payment for services offered.

To ensure you have cash flowing in your business, send an itemized list of the services you’ve offered, including the due date. Always send the invoice immediately after completing your services, and remember to include the cost.

Recurring Invoice

As a successful entrepreneur, you’ll occasionally find yourself working with businesses on a subscription base. This means you’ll be offering the same services for a particular period. A recurring invoice is the best form of small business invoicing that you should use.

For example, you may be running a gym. Using a recurring invoice, you can agree with your clients on the appropriate billing interval, which can be, weekly, Bi-weekly monthly, or more.

Credit Memo

This is a type of invoice available to entrepreneurs that you send to clients to acknowledge the debt. For instance, you may be paid by a client to provide goods to them; however, the goods are returned as they were delivered broken.

You may send a credit memo invoice indicating that you’re aware that you owe them money, and you’ll refund them later.

Learn the Types of Invoices you can Use to Grow Your Business

Learning the types of invoices at your disposal when running a business is a crucial element to entrepreneurial success. Use these invoices appropriately to grow your business.

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