• Invoice Generation: Invoices are formal documents that detail the goods or services provided, their quantities, prices, and any taxes or fees, typically including the seller's and buyer's information.
• Billing Cycle: Businesses typically follow a billing cycle, which can be weekly, bi-weekly, or monthly, which determines when invoices are issued and when payments are due.
• Methods of Payment: Billing involves various payment methods like credit cards, checks, EFTs, or online platforms like PayPal or Stripe.
• Accounting and Recordkeeping: Accurate recordkeeping is crucial for tracking transactions, managing accounts receivable, and maintaining financial records for tax purposes.
• Taxation: Invoices may need to include tax information, such as sales tax or value-added tax (VAT), depending on the jurisdiction and nature of the goods or services provided.
• Electronic Invoicing: E-invoicing is increasingly being utilized by businesses to streamline the billing process, reduce paper usage, improve efficiency, and expedite invoice delivery.