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An invoice is a crucial document in business that ensures payment for goods or services rendered. In this video tutorial, James from Accounting Stuff provides a detailed explanation of what an invoice is, why it is important, and what it looks like. He emphasizes the key features of an invoice with a practical example to help viewers understand its significance. James urges viewers to stay tuned for answers to common questions about invoicing, promising a clearer understanding by the end of the video. Invoicing is essential for all businesses, big or small, as it is how payment is processed for work done.