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n involves the exchange of goods or services for money. An invoice is a document that details this transaction, including the products or services provided, the quantity, the price, and the payment terms. Invoices are important for keeping track of financial transactions, managing cash flow, and ensuring timely payment. They also serve as a legal document in case of disputes or audits. In this video, James from Accounting Stuff explains the key features of an invoice with an example, emphasizing the importance of understanding and using invoices in business. Be sure to watch until the end for more clarity on this topic.