Invoice
Definition
An invoice is a billing document that lists the work performed, parts used, and total amount due from the customer.
What Invoice Means for Your Business
What it means
An invoice is how you get paid. It itemizes labor, parts, taxes, and any fees, shows the total, and states the payment terms.
Why it matters
Fast, clear invoicing is the difference between healthy cash flow and chasing checks for 45 days. Every day an invoice sits unsent is a day you are financing the customer for free.
How contractors use it
Modern shops generate the invoice on the tech's device at the end of the job, collect payment on the spot or email it instantly, and sync automatically to accounting software.
Real-World Example
A plumbing company cut invoice turnaround from 5 days to same-day and improved cash collection by $78,000 per month at the same revenue, just by reducing days outstanding.
Related Terms
Work Order
A work order is the digital or paper document that authorizes and records the work performed on a specific service call.
Final Invoice
A final invoice is the last bill on a job, showing the total amount due after applying any deposits and progress payments already collected.
Deposit Invoice
A deposit invoice is an initial bill that collects a portion of the total job cost before work begins, typically to cover materials and secure the customer's commitment.
Progress Billing
Progress billing is the practice of invoicing the customer in stages as work is completed on a long project, rather than waiting until the end.
Invoice Aging
Invoice aging is a report that groups unpaid invoices by how many days they are past due, typically in buckets of 0-30, 31-60, 61-90, and 90-plus.
Put This Into Practice with Free Software
Kaldr Tech handles invoice and everything else you need to run your shop. $0/month, 3.5% + 30¢ per transaction.