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Therefore, invoicing is paramount to recording the income you are due to receive but have not yet had. In accountancy terms, sales invoices are also known as 'Accounts Receivable (A/R)' which represent all the payments that are due but not yet received.

Unpaid invoices are liabilities because they represent an amount the company owes, regardless of when they pay it.

There are three types of billing methods: time-based, usage-based, and feature-based. Time-based billing is the most common type, where the customer is billed based on the duration of the service. Usage-based billing charges the customer based on the amount of resources or bandwidth they use.