Business document guides hub
Plain-English guides to every business document — what an invoice, receipt, quote, PO or credit note is, when to use it, and how to get paid faster.
Our guides explain every business document in plain language: what it is, when to use it, what it must include, and common mistakes to avoid. Start reading below.
Guide categories
- Invoicing: How to write an invoice, invoice vs receipt, proforma vs commercial invoice.
- Receipts: Rent receipts for HRA, valid cash receipts, 501(c)(3) donation receipts.
- Quotes & estimates: Quote vs estimate vs invoice, how to price a job.
Who these guides are for
Freelancers sending their first invoice, small businesses formalizing their paperwork, contractors billing for labour and materials, landlords issuing rent receipts, and nonprofits acknowledging donations. Whatever your situation, our guides pair with a free tool so you can read, then do.
Billing & invoicing glossary
Plain-language definitions of the documents and terms you will meet across these tools. Each links to a free generator where it applies.
- Invoice
- A document a seller sends a buyer to request payment for goods or services after they are supplied.
- Proforma invoice
- A preliminary, non-binding invoice sent before a sale to confirm terms, request a deposit, or clear customs.
- Commercial invoice
- The binding bill of sale and customs declaration used when goods cross international borders.
- Contractor invoice
- An invoice that itemizes labour (hours × rate) and materials separately, used by tradespeople and subcontractors.
- Credit note
- A document that partly or fully cancels a previously issued invoice, used for refunds and corrections.
- Purchase order (PO)
- A buyer-issued document that formally requests goods or services; it becomes binding once the vendor accepts it.
- Quotation
- A fixed-price offer for a clearly defined job, sent before any work begins.
- Estimate
- An approximate cost for a job that may change as the scope becomes clearer.
- Delivery challan / note
- A document that travels with goods in transit to confirm what was sent, without requesting payment or transferring ownership.
- Rent receipt
- Proof from a landlord that a tenant paid rent for a given period.
- Cash receipt
- Proof that a payment was received, especially important for cash, which leaves no bank trail.
- Donation receipt
- A nonprofit’s written acknowledgment of a charitable gift, used by donors to claim a deduction.
- Net 30
- A payment term meaning the balance is due within 30 days of the invoice date. Net 15 and Due on Receipt work the same way.
- Accounts receivable
- The money customers owe a business for invoices that have been issued but not yet paid.
- VAT / GST
- Value-added tax or goods-and-services tax charged on a sale and shown as a line on the invoice.
- Incoterms
- Standard three-letter trade terms (EXW, FOB, CIF, DDP) that define who pays for shipping, insurance and import duties.
- HSN code
- A Harmonized System code that classifies a product so customs can apply the correct duties and taxes.
- 501(c)(3)
- The US tax-exempt status for nonprofits; donations to a 501(c)(3) are generally tax-deductible.
- EIN
- An Employer Identification Number, the US federal tax ID a business or nonprofit puts on its documents.