Invoice To Cash (I2C) Definition

What is Invoice to Cash (I2C)?

The term “Invoice to Cash” (I2C) describes the process of converting customer invoices into cash. This cash can come in the form of payments made by customers, either through direct deposit or check.

The I2C process begins when a company generates an invoice for goods or services rendered. This invoice is then sent to the customer, who has a set period of time to pay the amount due. Once the payment is received, the I2C process is complete and the company has successfully converted an invoice into cash.

While the I2C process may seem simple, there are actually several steps involved in ensuring that invoices are paid on time and that payments are received promptly. These steps include:

Generating invoices: This step involves creating invoices for customers based on goods or services rendered. Invoices must be accurate and include all relevant information, such as the date of service, a description of the work performed, and the total amount due.

Sending invoices: Once generated, invoices must be sent to customers in a timely manner. This can be done electronically or via traditional mail. It’s important to send invoices as soon as possible so that customers have ample time to make their payments.

Tracking payments: It’s important to track payments to ensure that they are