Invoices and statements are common documents for small businesses. But do you know the difference between them, and when to use each one? Bookipi helps you manage both invoices and statements, so let’s explore the differences between the two.
Getting paid for goods and services that you’ve provided requires sending an invoice to your customer. The invoice includes information about the transaction, including the itemized list of products or services, the date of the sale, and any applicable taxes or fees. A formal request for payment is usually sent after goods or services are provided.
An invoice is a document that summarizes all the transactions between you and your customer over a specific period. Invoices and payments are included, as well as a list of all invoices issued to the customer. Customers receive statements on a regular basis, such as monthly or quarterly, to keep track of their outstanding balances.
Despite the fact that invoices and statements may look similar, they serve very different purposes. Statements provide an overview of all your transactions with your customer, while invoices are used to request payment for a specific transaction. Statements are used to keep customers informed of their balances and make sure payments are up-to-date, while invoices are typically issued after a sale.
With Bookipi’s easy-to-use invoicing and accounting software, you can create and send professional invoices and statements with just a few clicks. Our software automatically generates invoices based on the products or services that you’ve provided, and it can also create customized statements for each of your customers.
By using Bookipi to manage your invoicing and statements, you can save time, reduce errors, and improve your cash flow.
Despite their similarity, invoices and statements serve different purposes in your small business’s financial operations. Bookipi’s invoicing and accounting software helps you manage them effectively so your business stays financially healthy and successful.
As a small business owner, it’s important to understand the differences between invoices and statements.
What is the difference between a statement and invoice?
Statements are a summary of all transactions between you and your customer over a certain period of time, while invoices are requests for payment for specific goods or services you have provided. Invoices specify the details of a particular transaction, such as the products or services listed, the date of sale, and the amount due. In contrast, statements contain a list of all invoices issued to the customer and any payments received.
Can I use a statement as an invoice?
Despite the fact that statements and invoices serve different purposes, sometimes statements can be used as invoices. As an example, you could include the details of a specific transaction on a statement and treat it as an invoice if you have a long-standing relationship with a customer. It is generally better to use invoices for individual transactions and statements for summarizing multiple transactions.
What's the purpose of making statements for client work?
The purpose of statements is to provide an overview of all transactions between you and a customer over a period of time. They help customers keep track of their outstanding balances and ensure that they’re up-to-date on their payments. Statements can also be a helpful tool for you as a small business owner, as they allow you to easily track your revenue and see which customers have outstanding balances.
Should I make invoices or statements for my small business?
For requesting payment for specific transactions, invoices should be used and statements should be used for summarizing multiple transactions. Statements are typically issued on a regular basis, such as monthly or quarterly, while invoices are usually issued after a sale. Depending on your needs and the preferences of your customers, the best approach may vary for your small business.
With Bookipi’s easy-to-use invoicing software, you can create and send professional invoices and statements with just a few clicks, and customize them to fit your business’s unique needs.