Most companies deal with cash flow by keeping track of their expenses through invoices. These are used to keep track of the billing, and the income streams as well. Invoices are mainly bills with detailed service rendered or the list of products purchased along with their overall price. This type of billing can be done by any company, and may come from outside suppliers, and also from a company to another separate company. A company may also hand out invoices to its customers. An invoice book is used to store all of the invoices from and to every company or customer, in an organised, and methodical way, so that they can be referred to in the future. There are a lot of reasons as to why a company may keep an invoice book, such as cash flow analysis, tax purposes, and keeping records.
There are a lot of advantages that comes with keeping an invoice book. In many regions across the world, businesses are able to deduct a lot of their purchases that are made all over the year when the company files for taxes. After this is done, there still remains the chance that the companies have to prove that the purchases were legitimately made, and that there was a certain amount paid to the customer in exchange for the goods. Another advantage of having an invoice book is that the records that are stored in the book can be later analysed to determine he cash flow of the company. Most of the companies generally analyse their cash flows every quarter, and the invoices can be used to determine where the money was spent, and how much money was spent, so that the future investment can be planned accordingly. Although the most common purpose to have an invoice book is to have an overall record of all the purchases, and sales made by a company.