To gain a clearer picture, let’s take a look into each type of invoice.
These incorrect invoices can significantly stunt cash flow for small businesses, which is why understanding the different types of invoices is so important.īy knowing which types of transactions or situations call for which types of invoices, you can prevent your business from becoming part of this statistic.įactors that go into which type of invoice is relevant to a given transaction include the industry being served, how the invoice is sent, what the invoice payment terms are, and the stage of the project.
Studies have shown that 61% of late invoice payments are due to incorrect invoicing.
