If you make stuff and sell it, or are paid for services you provide to clients, like gardening or painting and decorating, then you’ll likely need to use invoices. Invoices are mostly used by small business owners and the self-employed, who may not necessarily have the demands or resources of a big company when it comes to requesting money from clients. It’s important to keep a record of any invoices you send out, so you can track any late payments and correctly declare your taxable income. They’re different to receipts, which are usually given after a payment has been made, as confirmation. Invoices form a written agreement between the two parties, in which the buyer is obligated to pay the seller by a set date. It should include the number of products or services provided, as well as the costs for each. Whatever you do, invoices are essential to getting paid.Īn invoice is a document sent by a seller to a buyer, asking for payment in return for their products or services. Of all these documents, invoices are probably the most important – especially if you’re a sole trader, freelancer or small business owner.Īn invoice ensures you get paid for your work – whether that’s artwork you sell in your online shop or a photography job you’ve just taken on. They keep everything running smoothly from one week to the next.
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