For any starting business, invoices are one of the first business documents you will come across. Issuing that first invoice may be a little nerve-wracking. But the good news is that whether you need invoice templates for a retail business or a freelancer invoice template, they can be pretty straightforward regardless of type.
In Canada, there are a few popular invoice types that you should be aware of. You will likely either have to issue them yourself as a business owner, or receive them from your own suppliers.
- Pro forma invoice - if your client needs to have an official, but not legal, document that states the prices of the goods or services they might avail from you for customs purposes or other needs, you can issue them a pro forma invoice.
- Sales invoice - a sales invoice is issued by the seller when payment is made by their client for goods or services fulfilled. It can also be called a purchase invoice.
- Past due invoice - if your client fails to pay for the goods or services you have provided, you can send them a past due invoice as a reminder, as well as update them on the penalties they may have incurred for the delay.
- Interim and final invoice - for larger projects such as in the construction industry, interim invoices can be issued during the duration of the project, with the last invoice called a final invoice.
- Tax invoice - these provide clear information for the seller and buyer the exact tax that is due as a result of the transaction. Tax invoices include provincial sales tax (PST) invoice, and the goods and services tax (GST) or harmonized sales tax (HST) invoice.