A sales invoice can be simply defined as the request of payment by the customer for goods sold or services provided the seller. An invoice generally lists the description and the quantity of the item sold or service provided. The document is also a record of the sale for both the seller and the buyer. A sales invoice in financial accounting is a tool that a company uses to communicate to clients about the sums that are due in exchange for goods that have been sold. A sales invoice should include information about which items the customer has purchased, the quantities he has bought, discounts he has received, and the total amount he owes. In addition, a sales invoice should contain a brief summary of the terms of the transaction, such as the acceptable lag time between the sale and the payment.
A sales invoice represents revenue that your company has earned. Using the accrual method of accounting, which treats a sale as income even before you have actually been paid for it, a sales invoice is an item to be entered in the revenue section of your ledger. Your total business earnings is a figure that includes the total amount of all of your sales invoices for a given period, as well as any additional income that your company has earned, such as from sale or rental of business property. We will help you keep track of all your sales invoices so that your accounts can be managed accurately and all your finances are in order when it is time to file your tax returns.
Your financial accounting should also include a system for keeping track of which sales invoices have been paid by your clients, and which transactions represent revenue that still needs to be collected. Account & Finance will help you put in place an efficient system for your firm.