Types of Invoices That You Need to Know7 min read

Types of Invoices That You Need to Know7 min read

Reading Time: 3 minutes

Just like every aspect in our daily routine, the comfort of being online changed our view of the financial world. Being tangled with all the leaden documents and exhausting regulations has always been a burden in the banking system we used. The obligation of waiting, explaining, inserting numbers, misunderstandings and the tiredness of doubting! Doubting about whether things will go like clockwork! Phew! Thanks to what is brought by staying online, there is no time for question marks or time-consuming processes these days. It is the same for online sellers and any small business owner. The common issue of goods or service providers are invoices. As one of the oldest rules of finances, every firm must bill their services and you must have a receipt after purchasing anything. 

What is Invoicing?

In brief, we can simply define invoicing as issuing a commercial document including a sale transaction indicating the products, quantities and prices for goods or services. In other words, it is a detailed document about stated payment terms mutually. No matter if you are a miniature artist in the Netherlands or a project manager in Minnesota, for every sale in your business, you need to document your sale with details. We know how tough work it is to customise, list, approve, revise and send them. As a service provider ourselves, Speedy is also under the legal obligation of invoices. But we have a highly improved shortcut for this baffling work! Online invoices! This is a next-gen version of traditional invoicing and it will lift all the burden from your shoulders! We promise! 

Speedy online invoicing is a revolutionary plus which differs Speedy from its opponents. Even if you are not familiar with accountancy, you can simply create or upload your invoices to Speedy. Then it is downhill to send them through a link or email to your clients. Just drop your document to our invoice templates and let us take care of rest properly. Speedy will read all the crucial information such as Client, Products, Amount, VAT and Due Date. Sounds comfy! Right?

What are Invoice Types?

Speedy serves you the best path to insert your business invoices and send them to your clients, yet it is essential to figure out types of invoice to sustain explanatory and potent labour relations. Here are some fundamental types that every entrepreneur, small business owner and freelancer must have knowledge about:

  • Proforma Invoice: Naturally, most clients will want to know the final price of goods and/or services. They can request a proforma invoice to get approval from others to move forward. Therefore, they can reconsider if they will cooperate with the provider or not. Please note that a proforma invoice is not a request, but rather a proximate notice for payment at the end of the project.
  • Interim Invoice: If you are onto a project taking place over a long period, it is wiser to send intermittent invoices on a predetermined schedule or time to time when you complete a significant piece of a larger project. Interim invoices are widely preferred in the sector due to being practical and simple.
  • Final Invoice: As you may understand from the title, this is the knot document to send after completion of the work. This invoice will contain every single detail including past payments, products, amount, VAT and due dates. 
  • Collective Invoice: If you operate intermittent IT services for a client, you may prefer to invoice them weekly or monthly instead of sending them for every single project. This will reduce transaction fees for both sides and save your time from tracking small payments. 
  • Memos: Memos (or memorandums) are amendments to an already sent invoice. According to the sender, they are named Credit Memo and Debit Memo. A Debit Memo is usually to inform a provider about underbilling. You may need memos as proof for your taxes or any possible dispute in the future.

Speedy serves a revolutionary touch to invoicing for every sector. If you are a freelancer, a small business owner or an entrepreneur, we are here to make your business day-to-day easier. Create your Speedy account today and move your business forward, beyond your dreams! Together, we are stronger than ever!