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what is an invoice the simplest and most accurate definition of an invoice is that it is a document that a seller gives a buyer to collect on a payment it usually includes the cost of goods or services rendered and outlines the mode and date of payment an invoice serves as a legal document and must contain specific details required for its validity these include the names of the client the terms of payment a description of the goods or services delivered and the cost [Music] an invoice serves as proof of a purchase made between you and your customer as a business entity why is an invoice important invoices act as requests for payments and therefore it goes without saying that you do need them and they are extremely important without an invoice a customer may refuse to pay or they may pay the wrong amount this can cause delays in payments and frustrations from both sides invoices also act as tax documents to help you with compliance to tax rules what is an invoice used for maintaining r