An invoice is a commercial document issued by a seller or service provider to a buyer or customer, requesting payment for goods or services provided. It serves as a detailed record of a transaction and provides information about the products or services purchased, their quantities, prices, and any applicable taxes or discounts.
The primary purpose of an invoice is to communicate the amount owed by the buyer to the seller and to establish an obligation for payment. It typically includes essential information such as: seller's information, buyer's information, invoice number, invoice date, payment terms, itemized description, subtotals, total amount and payment instructions.
Invoices play a vital role in business transactions as they provide a legal and financial record of the goods or services exchanged between the buyer and seller. They are used for accounting purposes, as evidence of the transaction, and for tax reporting. Additionally, invoices facilitate timely and accurate payment processing, helping to maintain a smooth and transparent financial relationship between the parties involved.
At Silverbird, we utilize invoices as a crucial component of our application process. By submitting invoices, you can provide tangible evidence of your business's trading activities. This documentation enhances the credibility and verification of your business operations, making it a valuable asset for your application.