Invoicing & accounting glossary
Plain-English definitions of the invoicing and billing terms you’ll meet.
Invoice
An invoice is a document a seller sends to a buyer to request payment for goods or services delivered.
Read moreQuote
A quote is a fixed price a seller offers a client for specific work or goods before the work begins.
Read moreEstimate
An estimate is an approximate price a seller gives for work before it starts, which can change as the job progresses.
Read moreProforma invoice
A proforma invoice is a preliminary bill that shows expected costs before goods or services are delivered.
Read moreCredit note
A credit note is a document that reduces or cancels an amount a customer owes after an invoice was already issued.
Read moreDunning
Dunning is the process of sending reminders to customers to collect payment on overdue invoices.
Read moreNet 30
Net 30 is a payment term meaning the full invoice amount is due within 30 days of the invoice date.
Read moreAccounts receivable
Accounts receivable is the total money customers owe your business for goods or services already invoiced but not yet paid.
Read morePayment terms
Payment terms are the conditions that state when and how a customer must pay an invoice.
Read moreRemittance advice
Remittance advice is a note a customer sends with a payment to tell the seller which invoices it covers.
Read morePurchase order
A purchase order is an official document a buyer sends to a seller to authorize and confirm a purchase.
Read moreVAT (Value-Added Tax)
VAT, or value-added tax, is a consumption tax added to the price of goods and services at each stage of production and sale.
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