The "Draft" status on an invoice indicates that it has been created but not yet finalized or sent to the client or insurance company. Invoices in this status are typically under review or awaiting additional information before being issued. Here are some key points about the Draft status:
Editing Capability: You can still make changes to an invoice when it is in Draft status. This includes adding or removing line items, adjusting prices, or changing the service description.
Preparation for Sending: Draft status allows you to prepare the invoice thoroughly, ensuring that all details are correct before sending it out. This is crucial for maintaining accuracy in billing and avoiding disputes.
No Impact on Financial Statements: Invoices in Draft status do not appear on financial statements or affect your financial reporting. They will only be included once they have been finalized and sent.
Flexibility: This status provides flexibility in managing your billing process. You can hold the invoice in draft as long as needed until all information is confirmed and you’re ready to proceed.
The Draft status is a useful tool for managing your invoicing process efficiently, allowing for adjustments and ensuring accuracy before any commitments are made.