An invoice can allow you to record your sales transactions, as well as charge your employer for your pay. Technically, an invoice is a document containing the sum due for goods that a person has provided. Over the years, this document has changed rapidly, from stone invoices to hand-written, electronic, and online ones.
Aside from using invoices for fiat currency, you can now also pay and send a cryptocurrency invoice. In this type of invoice, you can now use digital or cryptocurrencies instead of the traditional fiat currency as a mode of payment.
So if you're investing and earning cryptos, you can invoice such transactions through the following:
1. Selling Products
When you're a merchandiser, you must be flexible and cater to the different modes of payment your customer has—especially now that many consumers use cryptocurrencies to pay for goods. Gone are the days when fiat money is the only mode of payment that businesses use when catering to international customers.
So if you want to reach out to more clients, you must also have a crypto invoice for your transactions. Apps such as Wave can offer different invoices for different crypto platforms, which you can use to invoice your customers:
- First, you must register with a cryptocurrency platform that generates invoices.
- Next, you must choose your base fiat currency.
- Then, you can request for payment using the platform's features. Here, you'll fill out your client's details, including their base fiat currency and crypto wallet address. The client's fiat currency will be converted to crypto later on. One of the advantages of crypto platforms is you can choose the type of cryptocurrency for each payment.
- Lastly, the platform will send the invoice directly to your client's email address, as well as yours.
2. Protecting Oneself
Aside from billing your clients for their order, a crypto invoice also gives merchandisers legal protection. This is because the crypto invoice contains the description of the specific goods that your clients have ordered, and you can use these descriptions as proof to dispute accusations of delivering the wrong products. For instance, if your clients sue you for delivering the wrong products, you can present the crypto invoice as proof that the buyer has agreed on what's specified in the invoice.
Since you present your clients with an invoice before they make a payment, it's only reasonable to assume that they have properly read the descriptions before sending you their crypto payment.
On the other hand, an invoice also protects a buyer from receiving the wrong products. For instance, if the seller ended up delivering a different product from what’s described in the invoice, the buyer can use it as evidence to prove the seller's negligence.
Although you can't reverse a crypto transaction, you can ask the seller for a refund if they haven't correctly fulfilled what's stated in the crypto invoice.
3. Working For Clients
Sellers and buyers aren’t the only ones who can send and receive an invoice for a crypto transaction. Freelancers or employees can do so as well. But, of course, before completing a task or a service, you must ask your employer first if they cater to crypto payments. For instance, some only send specific cryptocurrencies like Bitcoins as payment.
Only if your client caters to crypto payments that you can send them a crypto invoice. Just like selling products, you must register on a crypto platform. By having an account with a crypto platform, you can receive crypto payments anywhere around the globe.
Other benefits of using a crypto transaction for your work invoice include the following:
- With a traditional invoice, the transfer of your payment to your bank account may take several days. But when you use a crypto transaction for your invoice, it will only take less than an hour. Moreover, if you don't have a bank account number, they can still send your payment since crypto transactions don't require bank accounts.
- As with transaction fees, it'll only take up to 1% or less for crypto transactions. Thus, if your pay covers the transaction fees, you can save on these charges, unlike with traditional modes of payment.
- Since you won't need to attach your bank account details when sending an invoice for your crypto payment, you can minimize your risk of falling prey to cybercriminals. Even if they can hack into your email or your employer's email, they won't find any bank account details.
4. Maintaining Records
Most importantly, using an invoice for every crypto transaction you make offers convenience. Although you can check on your crypto account for the history of how much crypto you've sent or received, invoicing your crypto transactions keeps your records organized.
Especially when you've got a lot of crypto accounts, it'll be a hassle looking into the history of each one and finding what each transaction is for.
But with an invoice, you can easily print it out, arrange it by date or transaction, then keep them. This way, you'll save a lot of time while you can keep a hard copy of each transaction according to its purpose.
Yes, You Can Use Invoices For Crypto Transactions
There you have it! Thanks to advancements in technology, invoicing now includes every mode of payment, even cryptocurrency transactions. Whether you're providing a product or service, or are receiving crypto payments, you can use an invoice for any of those. Through the use of cryptocurrency invoices, you can cater to many customers from all across the globe, have your transaction protected whether you’re the merchant or buyer, and have a way of properly organizing your records without having to risk your bank account details falling prey to cybercriminals or hackers.
Since crypto transactions are not only limited to trading and investing, merchants and consumers alike can both use cryptocurrencies with every kind of transaction they make as it is also a more secure and less costly way of sending and receiving payments. Using an invoice even secures and strengthens every crypto transaction, so whether you’re a buyer or a seller, consider using crypto invoices when doing business.