Invoice
Definition
An invoice is a document sent to a customer showing how much they owe for goods or services. Recording an invoice creates revenue and Accounts Receivable.
Example
Northstar Creative sends a customer a $2,000 invoice for completed work. The bookkeeper records $2,000 of Service Revenue and $2,000 of Accounts Receivable.
Why It Matters
Invoices are the source document for customer billing. They create the record of what is owed and when it is due.