![]() This example illustrates how the terms invoice and bill are used differently in accounting:Ī business sends an invoice to a customer → The customer receives it as a bill → The customer pays the amount owing → The business issues a receipt as proof of the payment What’s the Difference Between an Invoice and an Estimate?Īn invoice and an estimate look similar to one another and contain much of the same information, but they serve very different purposes. When you receive an invoice from a supplier as a customer, you enter it in your books as a bill that must be paidĪn invoice and a bill convey the same information about the amount owed as part of a business transaction, but an invoice is generated by the business providing a service, and the customer receiving the invoice records it as a bill to be paid.A bill serves as a record for the customer of the goods or services provided by a business and acts as a reminder of payments owing.A bill is issued before payment is sent. ![]()
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