Why Are Invoices Important for a Business?There are many different documents that businesses regularly use in their work. Quotes, estimate templates, invoices, purchase orders. Invoices are the type of files that are an integral part of any workflow. They not only perform real accounting functions but also help you analyze your company’s performance and effectiveness. Let’s take a closer look at the importance of a billing system for freelancers, self-employed, vendors, and independent contractors or how to invoice for hours worked.
The Purpose of an InvoiceIn short, the purpose of these documents is to record sales. However, everything is much more complicated and deeper. What is an invoice used for in small businesses? They are utilized for:
- bookkeeping and accounting;
- payment of taxes;
- analysis of activities;
- marketing campaigns development;
- legal protection.