What Is an Invoice? Everything Contractors Need to Know
Updated: May 18
As a construction business owner, you know how crucial it is to keep cash flowing into your company. One of the simplest and most effective ways to achieve this is by sending accurate and timely invoices. However, invoicing can be challenging for contractors due to slow payments, credit-heavy projects, or a lack of expertise.
But don't worry! In this blog post, we've got you covered. We'll give you everything you need to know about invoicing, why it's so important, and some tips to help you stay on top of your game.
Table of Content:
What is an Invoice?
A contractor or subcontractor sends an invoice for the contract work done when the payment is due. When an invoice is sent, it creates a payment obligation, also known as an account receivable. An invoice is a document, and invoicing is what keeps the cash coming in.
>> Learn more: Progress Invoicing for Construction Accounting
What Is It Used For?
Invoices are essential financial records for both contractors and customers.
A contractor invoice serves the following purposes: