Do you know there is a difference between an invoice, bill and a statement?
In accounting, there is often a misperception between the terms invoice, bill and a statement.
Invoice is a term formed by retailers when they need to accumulate money from their customers. They can be termed as sales transactions that consist of the customers’ account information. You can also term it as sales receipt for the transactions to receive from the customers.
Sales Receipts are usually involved for things that are purchased by the customers for the immediate payment.
Bill is a term normally used to define the transactions which are payable to the retailers. In situations when the retailers send you the invoice when it is represented to be a bill for which you are payable.
A statement is produced when there is a requirement for that point of time of the business. A statement may contain, credits and payment details for that particular business. Statements are found to be sent every month to remind the customer about their status of payment.
Apart from differences between terminologies, there are some fear factors on payments.
The Accounts Payable department is a prime target for scam. Repeated fraudulent activity with the invoice may lead to big problems. But these discomforts can be avoided by certain techniques that are respected during the business and save the company before it drowns in the ocean.