An invoice is a commercial document issued by a seller to a buyer that lists the products or services provided, quantities, prices, and payment terms. It serves as a formal request for payment.

What is the difference between an estimate and an invoice?

An estimate is a proposal for work before it is done, showing projected costs. An invoice is a bill issued after work is completed, requesting actual payment for goods or services delivered.

What does accounts receivable mean?

Accounts receivable is the balance of money owed to a business for goods or services delivered but not yet paid for. It is listed as an asset on the balance sheet.

What is double-entry bookkeeping?

Double-entry bookkeeping is an accounting method where every transaction is recorded in at least two accounts — a debit in one and a credit in another — ensuring the accounting equation always balances.

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Business Finance Glossary

Essential invoicing, accounting, and business terms explained simply. Build your financial vocabulary with our comprehensive glossary.

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