What Are the Various Types of Invoices? - Small Business Invoicing Guide
There are several forms of invoices that companies will provide for their customers, and the type of invoice you use would be determined by the sector, what you charge for your services, and how frequently you want to be paid.
The following are the various forms of invoices that companies will provide for their customers:
A standard invoice is provided by a company and delivered to a customer. This is the most popular type of invoice created by small companies, and the style is adaptable to most sectors and billing loops. Standard invoices contain the following sales information:
- The name of the company and contact details.
- Name and contact details for the customer
- A unique invoice number.
- The sum of money owed by the customer to the company for its services.
A credit invoice, also known as a credit memo, is produced by a company that needs to offer a rebate or reimbursement to a customer or to correct a prior invoicing mistake. A credit invoice would still have a minus total.
For eg, if you send a credit invoice to a customer detailing a $50 reimbursement, the balance on the credit invoice would be -$50.
A debit invoice, also known as a debit memo, is issued by a company that wants to raise the money owed by a customer. Debit invoices are helpful for small businesses and freelancers who need to make a minor alteration to a current bill.
For eg, if you sent a client an invoice based on your projected hours but ended up spending more hours on a job, you might give the client a debit invoice for the extra hours billed. Debit invoices are often written in the form of a positive number.
Mixed invoices incorporate credit and debit payments on a single bill, and the net balance may be expressed as a positive or negative figure. Small companies sometimes need to establish blended invoices of their work, although it might be appropriate if you are decreasing the amount owed by a customer for one of the projects you are paying on while increasing the amount owed on another project.
A timesheet is an invoice that is used when a company or individual bills depending on the number of hours worked and their regular rate of pay. Contract employers who are working on an hourly basis use timesheets. They are also popular in industries where clients are paid on an hourly basis, such as by:
- Business consultants
- Content creation agencies
- Quantity of shipment
- volume / weight
- Goods description
- Complete expense
- Format of packaging
- A complete list of the programs available
- The total project expense
- The invoice number
- The due date of the invoice
- Accepted payment systems
Past Due Invoice
A past due invoice is issued by a company if their customer fails to pay by the due date specified on the final invoice. When a customer wants to deliver a deposit on time, you can give them a past-due invoice. Past due invoices include all of the operation and transaction information listed on the final invoice, as well as any late fees or interest rates.
Recurring invoices are useful for companies who charge customers the same amount for their services on a regular basis. Recurring invoices are popular in IT businesses that charge the same amount to their clients each month for a bundle IT service. Alternatively, if you are a freelance digital marketer, you might sell social media marketing packages to your clients with regular monthly pricing. Cloud-based invoicing software automates the process of generating recurring invoices and can also send them out on the same day each month so you don't have to worry about it.
E-invoice is a catch-all word for any invoice submitted electronically, regardless of the form of invoice. E-invoicing is becoming more popular among small businesses and freelancers. E-invoices are simpler and easier to make than traditional print invoices, and they help you get paid for your services faster.