What is an Invoice?

Your business protection plan starts with the language on your invoices. Invoices are documents used to itemize and record transactions between vendors and their customers. An invoice will include and list in specific detail all costs associated with a transaction, including sales tax, fees, shipping and handling, and any purchases the vendor made associated with the transaction. Businesses should make the language on their invoices clear and understandable, as well as professional and concise. Vague or unnecessary language can confuse customers and create legal disputes if a customer misunderstands what you are charging them for. This blog post will explain what invoices are and how businesses should draft their invoices to protect themselves from legal issues associated with them.

Invoices communicate to customers what they owe to a vendor or seller. Businesses issue invoices when payment on goods or services becomes due. For clarity’s sake, a good invoice will clearly display the title “Invoice,” and list the names of the vendor and customer, the quantity, price, and description of every product or service sold to the buyer, the total amount due, the date the invoice was issued, and the date payment on the invoice is due and payable. Language that is clear and to the point will help the customer understand what they are being charged for, and help a business avoid charging customers too much or too little for what they sold them.

Well-written invoices can help companies avoid legal issues. Good invoices itemize every expense and use concise, consistent language to describe what each charge is for while also avoiding language that is unnecessary. Excess language like slogans, advertisements, and trademarks on invoices may confuse customers into thinking the language relates in some way to the items the invoice charged them for. Legal disputes can arise when customers believe, rightly or wrongly, that a vendor is charging them more than they agreed to. Transacting using only invoices that are clear, specific, and to the point can enable a business to clarify to concerned customers what they are being charged for, and easily persuade a judge that the business has acted properly.

An experienced attorney can review your business’ invoices to make sure they are written clearly and will not create problems. If you are looking to protect your business by drafting good invoices and taking other protective measures, contact McNeelyLaw today. Our experienced team of attorneys can assist you with all of your business needs.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.