An invoice is required when a business or individual makes a sale or provides a service to a customer. It is used to document the details of the transaction, such as price and payment terms.
To write an invoice, you need to include the following information: your company's name and contact information, the customer's name and contact information, the date of the invoice, the details of the sale or service (including unit prices and quantities), the total to be paid, the terms of payment and any additional details (such as VAT, discounts, etc.). It is best to use a pre-formatted invoice template to ensure that all required information is included.
The length of time that invoices are kept varies according to the legislation in force in each country. In general, it is recommended to keep invoices for at least 5 to 6 years for tax and accounting reasons. However, it is important to note that some invoices may require longer retention, such as invoices related to buildings or vehicles, which may have a longer shelf life.
It is important to keep invoices to be able to prove expenses incurred for which businesses or individuals can deduct taxes. In addition, invoices keep track of all transactions made, which can be useful for audits and tax audits. Finally, invoices can also be used as evidence in the event of a dispute with a customer or supplier.
The difference between a quote and an invoice is that a quote is a document issued by a company prior to the sale or service, which estimates the costs and details of the transaction, whereas an invoice is issued after the sale or service to document the details of the transaction and payment information. A quote is therefore considered an offer, while an invoice is a request for payment.
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