An invoice is a commercial document detailed with a list of transaction(s) between a seller and a buyer. For instance, an invoice may list the products or services provided, their quantities, unit prices, total amounts, and payment terms.
Invoices are essential for accurate accounting, ensuring both parties have a clear record of the transaction. They benefit businesses by streamlining billing processes, providing a legal record of sales, and facilitating cash flow management. Historically, invoices have evolved from handwritten notes to digital formats, improving efficiency and accessibility.