Countless transactions take place every day and each transaction needs a record. An Invoice is a document that maintains all the transactions. No matter how big or small the business is, you need to make an invoice for every transaction. The type of invoice is influenced depending on customer type, deal, etc
For example, if you are shipping invoice internationally, you will need to issue a commercial invoice.
By the end of the Blog, you will have the knowledge about all the types of invoices, along with one of the best fit for your small business accounting .
Read along to learn about:
- How to create e-invoice under GST?
- E-invoicing solution to help your businesses manage invoice under GST
- How to choose the Right Billing and & online invoicing software?
- The only invoice manager App you will ever need
8 Main Types of Invoice
Here are 8 most important types of invoice for small business dealing in their day to day life:
- Pro-forma Invoice
Proforma invoice is a preliminary invoice sent to the buyer giving the rough idea about the cost of the products & services. It is not an official demand for cash. It is also referred to as an Estimate or Quote. Usually, it still represents a more or less accurate total the customer has to pay.
- Tax Invoice
Tax invoice is issued and generated by the supplier who is registered under GST or any other tax that mandates the business to register or issue such invoice. It allows registered customers to claim the tax deductions.
Example, Tame Electronics supplies 10 laptops @30,000 each to Max Electronics (Registered). Tax @18% is charged on the supply.
- Commercial Invoice
It is a type of invoice that is issued by the businesses for goods that is sold internationally. It includes details that determine custom duties. The information included in commercial invoice are:
- Shipment Quantity
- Total Value
- Packaging format
4. Debit Invoice/Memo
Debit invoice is generated by the organisation to increase the charge against the client for not being able to pay the whole amount on time or you underbilled them.
It shows the balance or late fees, if any.
5. Credit invoice/Memo
On the other hand, Credit invoice is an amendment to a previously issued invoice, where the company owes the buyer some amount.
- The client wants to return the product
- There is a pricing error
- Product sent was damaged
- The wrong product got delivered
A credit memo is generated with the negative total number for the above situations.
6. Timesheet Invoice
The timesheet invoices are used by the companies or employees who charge by an hour to ask for payment. Some common jobs that use hourly payment are counsellors, freelancers, psychologists etc.
A timesheet invoice have these elements:
- Hourly Rate
- Total hours worked
- Administrative fees
- Date of Days worked
7. Service Invoice
A service invoice is generated for services rendered to customers and is issued by those companies who are in the service industry like Repair, Maintenance, Tech based services, Digital Marketing, etc.
An e-invoice refers to the invoices that get delivered electronically. The digital form of invoice is gaining popularity all over the world as it is faster, less expensive and an easier alternative to standard paper invoices. It also allows you to get paid faster.
You just need to download the pdf and mail it to the respective company.
E-invoicing With Gimbooks
Gimbooks offers you free templates that you can
- Customize according to your industry type with your business logo, brand colours, name, and that too in a matter of seconds.
- Automate recurring invoices
- Request payment to improve the cash flow
- Add additional charges according to the tax to make sure that the billing is accurate.
- Have Multiple Billing Mode
The best part? You can access the app anytime and anywhere. Download the Gimbooks Mobile App Now
So what are you waiting for?
Start invoicing right away!