Key takeaways:

• Invoicing is a formal request for payment, outlining the goods or services provided, total amount due, and payment terms.
• Invoicing is critical to both employers and independent contractors for tracking expenses and managing cash flow.
• When working with clients or contractors abroad, it's important to be aware of invoicing requirements and customs of the country where the client is located.

Whether you're an employer or an independent contractor, invoicing is an essential part of doing business. An invoice is a formal request for payment, and it's important to understand the basics of invoicing, especially if you're working with clients abroad. In this blog post, we'll explore what an invoice is and why it's so important for businesses of all sizes.

An invoice is a document that outlines the goods or services that have been provided, the total amount due, and the payment terms. It's a simple but effective tool that helps to ensure that payments are made on time and accurately.

For employers, invoicing is a critical part of the accounts payable process. It ensures that payments are made to suppliers and contractors in a timely manner, and it helps to track expenses and maintain accurate financial records.

What should I know if I’m an independent contractor?

For independent contractors, invoicing is an important way to manage their cash flow and ensure that they're paid for the work they've performed. It's also an opportunity to clearly communicate the scope of work and payment terms to the client, which can help to avoid misunderstandings and disputes down the line.

When working with clients abroad, it's important to be aware of the invoicing requirements and customs of the country in which the client is located. For example, some countries may require invoices to be in a specific format or to include certain information, such as the VAT number or tax code of the supplier.

Invoicing is a vital tool for businesses of all sizes, and it's especially important for employers and independent contractors working abroad. By understanding the basics of invoicing and being aware of the requirements and customs of the country in which you're working, you can ensure that your invoices are accurate and effective, and that you're paid on time for the work you've performed.

Hiring contractors? Thera can save you a ton of time

You don’t need to issue W-2 forms to your contractors. But, if you are hiring contractors, you’re probably spending too much time on their payroll, contracts, and tax documents. Which is why we built Thera, which saves you 90% the time you spend on contractor paperwork each month.

With Thera, you can compliantly hire your contractors in 150+ countries, onboard them in minutes, and pay them all at once (in a click). It’s global contractor payroll, finally simplified.

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