Running a business
Maрго Овсієнко, 2014-05-23
Receipts and invoices are source documents in accounting. When a buyer and a seller conduct business transactions they are required to record or document it with both of these documents.
A receipt is document stating that payment has been complete in order to finalize the sale. It usually works an ownership proof and should contain the following information:
- list of goods or services
- price for goods or services
- credit equal to the owed amount
- tax rates appropriate for country and business
- total amount paid for the goods or services
- method of payment for the goods or services
Receipts contain information regarding buyers and sellers, varying, however to a certain degree. They usually have complete seller's information but the buyer's information is limited.
Essentially, an invoice is the seller's request for payment and receipt is the buyer's proof of payment.
InvoiceOcean - news Running a business
Freight Industry in the US needs Better Invoicing Standards
Invoicing is a process that takes some effort and standardization in order for companies to function effectively for the long term. It is good to stick with one standard in terms of what is expected on an invoice, the payment to be delivered by the due date, and for companies to be able to follow their invoices (knowing which were paid and when for instance) for the long term with their clients.
Mike Lata (aka Maciej Duraj)
Start your 30-day free trial