Invoice templates are important tools for your business. Whether you have a broad consulting business, or a specific business like in pest control or retail, a record of your sales must be kept for when tax season arrives. But invoices can have more uses than just a simple log of business done, too.
In the US, there are popular types of invoices that serve various purposes. There are six common types that you may come across as you do business.
The most common and basic type is the purchase or sales invoice. The buyer would call it a purchase invoice, while the seller calls it a sales invoice.
However, if you need to inform your customer how much is supposed to be paid once the goods or service is delivered or performed, you would issue a pro forma invoice to them. Once the transaction is final, you would give them a commercial invoice afterward.
A big project such as in construction would use an interim invoice if the work down or goods delivered is split over a longer period of time, such as different phases or shipments. These might be sent monthly to your client, with the last one called a final invoice.
Don't mix this with a recurring invoice, which is more for a subscription-based good or service. This would be issued on a regular cycle until the subscription is concluded.
A past due invoice is a good way to remind clients who have not yet paid of their obligation as well as inform them of any penalties they have incurred (and may continue to incur).
