A debit invoice is provided when a seller needs to increase the amount owed by the client. This accounting document is used when an hourly rate was quoted, but the job took longer to complete than originally estimated. When a business provides a refund or a discount, they may send a credit invoice with a negative total, representing a reduction of the amount owed by the customer. Sales invoices are crucial documentation for verifying claims made on tax returns. The IRS recommends small businesses keep supporting documents like invoices in case a tax audit is conducted. You should discuss any credit terms when you are closing a sale along with any penalties for late payments. Importance Of  Sales Invoice in Small Business Accounting It establishes an obligation on the part of the purchaser to pay and serves as proof of the debt. Invoices are essential for many businesses, but it’s virtually mandatory for any company dealing with a supply chain or offering services without payment needed upfront. Proper sales invoices are the real art created …