What is the Difference Between an Invoice and a Bill? Does it Matter?
When it comes to invoices vs. bills, it can get a bit tricky to understand what the difference is between the two documents and when to use either one. Let’s take a look at the distinct differences between an invoice and a bill and why it matters so much.
What is the Difference Between an Invoice and a Bill?
They are actually describing pretty much the same thing
- When it comes to a business relationship, having these two words accomplishes two important functions
- Ensures that there are concrete terms to be used and understood on both ends
- Saves time in communications
Could a Single Document be Both?
When determining what the difference is between a bill and an invoice, it depends on your perspective.
- You can create an invoice for Ms. Jones for her hat and send it to her, or you can email it – the client will receive the document and have a bill to pay.
- Invoices and bills are used to keep everyone organized.
How to Create Invoices in Quickbooks
On the left-hand menu, go to Invoicing
- Select your customer from the dropdown list.
- Enter the terms of payment (the amount of time your customer has to pay the invoice), enter the information about the product/service provided, and enter the email you want to send the invoice to
- Preview your invoice and customize the style.
What is an Invoice?
An invoice is a breakdown of costs that is sent from the provider of a product or service, to the consumer
- The invoice lists and describes whatever was provided, while also establishing the requirement and deadline for the consumer to pay their bill
How to Pay Bills Through Quickbooks
In the main menu, click on Suppliers
- Go to “Pay Bills”
- Select the right Accounts Payable option if you have more than one
- Enter any discounts or credits you may want to use
- Choose the date of payment and the method you will use to pay the bill
- Once you’ve entered all your information, click “Pay Selected Bills” and review your Payment Summary and click “Done”
What is a Bill?
The word bill comes from the Medieval Latin word bulla, meaning sealed document
- Your vendor sends you a bill that you will then pay
- An invoice means you are requesting money, and a bill means that you are required to pay for something
- When you send an invoice to a customer, the customer then receives it as a bill