A large number of small businesses are part of the Australian community. Running a small business with a progressive cash flow is challenging, mainly managing the finance department of your business. Invoicing and on-time payments are significant. To implement an effective strategy, the business owner must know the types of invoices. 

Freshbooks have shared a long list of different invoices; the following are other invoices significant for small businesses. For readers’ convenience, a short description is also added to each one. 

Standard Invoice

Standard invoice is most common in business. It is issued to the client and includes legal information like issue date, company name, logo, item detail, price, etc. There isn’t a hard and fast rule about it. Instead, it has a flexible format that may differ from business to business.

Pro forma Invoice

It is very different from the regular standard invoice. These are not for payment; instead, these invoices give a quote or estimation to the client for a set of services or goods. In other words, it is a beforehand invoice that makes the client ready to pay the amount on receiving services or goods. Many small businesses use this type of invoice for different purposes.

Past Due Invoice

It is issued when the client does not pay an invoice on the due date. The vendor should send past unpaid invoices immediately to the client as the due date is over. These invoices are sent as reminders to pay. These include details of every service or product and can consist of any surcharge, late fee, or penance.   

Recurring invoice

This invoicing is used for continued services, or the users have to pay the dues periodically. For instance, a subscription fee, internet charges, monthly phone payment, or a gym fee requires a recurring invoice. Every business may need a different format for its invoicing. For a quick invoice generation, download invoice template from Bildu.com and send quick reminders to your defaulter clients.

Interim Invoice

In the case of large projects, interim invoices help to manage payments. The whole project and costs are divided into installments. This invoice includes project and payment details along with the payment dates. It secures the business from any loss of nonpayment of dues.  

Credit Invoice

It is issued to set a payment error or when a business has to manage any refund or rectification of a previous payment. For example, a company has to refund $100 to a client; then the invoice total would be -$100. Its total is presented as a negative balance.

Debit Invoice

It is the opposite of a credit invoice. It is used to claim some extra amount from the client for additional work or services. These are significant for freelancers and small businesses when they have to add adjustments to their preset bills. Their total amount is always a positive number.

Final Invoice

This type of invoice is sent after a project for payment of dues. It includes more details and finalizes all the charges and their attributes. Final invoice templates are available online. It usually consists of the following;

  • Invoice number
  • Invoice issue date
  • A detailed list of items
  • Payment due date
  • Acceptable methods of payment
  • The vendor can add any note or advice for the client

All these are significant for small businesses and frequently used in managing finance for progressive cash flow.