What are the common types of invoices?

A standard invoice is a basic invoice that may be used for many different kinds of business transactions. It is the most common type of invoice used in business. 

A commercial invoice, when used in specific industries, is usually more detailed than standard invoices and often contain items unique to the industry. For instance, they may be used in foreign trade for customs declarations and to calculate tariffs.

Professionals use timesheets when their services are provided, evaluated, and charged based on the amount of time that the services are provided. A timesheet may be used by independent contractors or non-salaried employees in order to track their hours and ensure accurate pay. 

Recurring invoices are invoices that typically have fixed payment rates and are delivered at regular intervals or benchmarks. They are commonly used in industries that provide rental, lease, or subscription services. For example, software, marketing, design, and consulting services often use recurring billing.

A pro forma invoice is a document that states a seller’s commitment to deliver the products or services upon the terms as offered to the buyer. This type of invoice is basically an estimate or a quote that may be subject to change. Like all invoices, a pro forma invoice is not a legally binding document, and therefore the seller will be free to make changes until the parties arrive at a contractual agreement.

A progressive invoice is commonly used in transactions that take place over a long period of time in order. The buyer receives an updated copy as additional work and costs are incurred. Construction contractors and other contractors regularly send progressive invoices to keep customers updated on the projects. Depending on the arrangement, the parties may agree that the buyer has to first sign off on any additional or non-standard costs before the seller provides such items.

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