Bill
BasicsA request for payment from a seller to a buyer — in everyday language, often interchangeable with 'invoice'.
Detailed Explanation
Examples
- A restaurant presents the bill at the end of a meal
- The accounts payable team enters a vendor's invoice as a bill in their accounting software
Quick Q&A
What is Bill?
A request for payment from a seller to a buyer — in everyday language, often interchangeable with 'invoice'.
What does "Bill" mean?
In casual and consumer contexts (a restaurant bill, a utility bill, a phone bill), 'bill' usually means a document asking for immediate or short-term payment. In B2B accounting the word has a more specific meaning: a 'bill' is what the buyer records when they receive an invoice — the same document, viewed from the other side of the transaction. Tools like QuickBooks and Xero formalize this by calling outbound documents 'invoices' and inbound documents 'bills'. Functionally, both list the goods or services, quantities, amounts, and what is owed.
When is Bill used?
A restaurant presents the bill at the end of a meal ; The accounts payable team enters a vendor's invoice as a bill in their accounting software