Businesses issue invoices to their customers for completion of good & services. Simple stuff however, it’s worthwhile taking a deeper look at what an invoice actually is.
Plainly stated an invoice is the promise of a future cash payment by a third party. In accounting and business parlance any future positive cash flow is labelled an Asset and specifically for an invoice it is a Current Asset as it converts to cash in the short term (e.g. payment terms NET 30 days). For many businesses in B2B industries, it is common place for the accounts receivable ledger to be the only asset of value on the balance sheet.